DALLAS, Nov. 24, 2020 /PRNewswire/ -- Jacobs
Engineering Group Inc. (NYSE: J) today announced its financial
results for the fiscal fourth quarter and fiscal year ended
October 2, 2020.
Q4 2020 Financial Highlights:
- Revenue of $3.5
billion1 grew 3.7% year-over-year; net revenue up
2% pro forma
- EPS from continuing operations of $0.53, includes impact from Focus 2023
initiative
- Adjusted EPS from continuing operations of $1.63, including $0.24 in discrete tax benefits
- Backlog increased $1.2 billion to
$23.8 billion, up 6% year-over-year
and up 3% on a pro forma basis
- Cash flow from operations of $432
million and free cash flow of $403
million, driven by strong DSO performance
Fiscal Year 2020 Highlights:
- Revenue growth of 6.5% and pro forma net revenue growth of
2.5%
- Net earnings from continuing operations of $354 million and adjusted EBITDA growth of 7% to
$1.05 billion
- FY20 EPS1 of $2.67 up
28% and adjusted EPS of $5.48, up 9%
year-over-year
- Cash flow from operations of $807
million and free cash flow of $689
million, representing strong cash conversion
Jacobs' Chair and CEO Steve
Demetriou commented, "Our strong FY20 results and solid FY21
outlook demonstrate the mission-critical nature of our solutions,
and when combined with the diversity of our end markets, enables us
to thrive in varying economic environments. The pandemic has served
as a catalyst for us to materially accelerate our digital vision
and quickly pivot to an effective virtual workforce." Demetriou
continued, "At Jacobs, our mindset of continuously challenging
today to reinvent tomorrow has enabled us to capitalize on enhanced
technologies, positioning us for sustainable, long-term
growth."
Jacobs' President and CFO Kevin
Berryman added, "Our focus on delivering innovative and
technology-enabled solutions for a more connected, sustainable
world is even more critical today than any time in our company's
history. During fiscal 2020 we grew revenue and profits
year-over-year, generated $689
million in free cash flow and are positioned for operating
profit growth and strong cash flow generation in fiscal 2021. The
next phase of our growth will be propelled by Jacobs' Focus 2023
initiative – further accelerating our global integrated delivery of
technology-enabled solutions."
Financial Outlook2
The company expects fiscal 2021 adjusted EBITDA of $1,055 million to $1,155 million and adjusted EPS of
$5.20 to $6.00.
We have launched our Focus 2023 initiative with expected
benefits of over $200 million versus
fiscal 2020.
Looking beyond fiscal 2021 the company expects developing
business momentum leading to double-digit growth in adjusted
EBITDA.
Fourth Quarter Review
|
Fiscal Q4
2020
|
Fiscal Q4
2019
|
Change
|
Revenue
|
$3.5
billion
|
$3.4
billion
|
$0.1
billion
|
Net
Revenue
|
$2.8
billion
|
$2.7
billion
|
$0.1
billion
|
GAAP Net Earnings
from Continuing Operations
|
$70
million
|
$22
million
|
$48
million
|
GAAP Earnings Per
Diluted Share (EPS) from Continuing
Operations
|
$0.53
|
$0.16
|
$0.37
|
Adjusted Net
Earnings from Continuing Operations
|
$214
million
|
$201
million
|
$13
million
|
Adjusted EPS from
Continuing Operations
|
$1.63
|
$1.48
|
$0.15
|
The company's adjusted net earnings from continuing operations
and adjusted EPS from continuing operations for the fourth quarter
of fiscal 2020 and fiscal 2019 exclude the adjustments set forth in
the table below. For additional information regarding these
adjustments and a reconciliation of adjusted net earnings and
adjusted EPS to net earnings and EPS, respectively, as well as a
reconciliation of net revenue to revenue, refer to the section
entitled "Non-GAAP Financial Measures" at the end of this
release.
|
Fiscal Q4
2020
|
Fiscal Q4
2019
|
GAAP Net Earnings
from Continuing Operations and Diluted Earnings Per Share
(EPS)
|
$70 million ($0.53
per
share)
|
$22 million ($0.16
per
share)
|
After-tax
restructuring, transaction costs and other charges ($211.9 million
and $113.5 million for the fiscal 2020 and 2019 periods,
respectively, before income taxes).
|
$161 million ($1.22
per
diluted share)
|
$88 million ($0.65
per
diluted share)
|
Other adjustments
include:
(a) addback of
amortization of intangible assets of $23.5 million and $23.4
million in the 2020 and 2019 periods, respectively,
(b) the
reclassification of revenues under the Company's Transition
Services Agreement (TSA) with Worley of $0.6 million and $21.3
million included in other income for U.S. GAAP reporting purposes
to SG&A and the exclusion of $(0.5) million and $0.7 million in
remaining unreimbursed costs associated with the TSA during the
fiscal 2020 and 2019 fourth quarters, respectively,
(c) the removal of
$(44.5) million and $64.8 million in fair value adjustments related
to our investment in Worley stock (net of Worley stock dividend)
and certain foreign currency revaluations relating to ECR sale in
the 2020 and 2019 periods, respectively,
(d) the add-back of
charges resulting from the revaluation of certain deferred tax
assets/liabilities in connection with U.S. tax reform of $24.0
million in 2019 and
(e) associated income
tax expense adjustments for the above pre-tax adjustment
items.
|
$(16) million
($(0.12) per
diluted share)
|
$91 million ($0.67
per
diluted share)
|
Adjusted Net
Earnings from Continuing Operations and Adjusted EPS from
Continuing Operations
|
$214 million
($1.63 per
diluted share)
|
$201 million ($1.48
per
diluted share)
|
(note: earnings
per share amounts may not add due to rounding)
|
Fiscal fourth quarter 2020 adjusted earnings per share from
continuing operations reflect an adjusted effective tax rate of
22.9%, excluding favorable discrete tax impacts of $31.6 million, or $0.24 per share.
Fiscal 2020 Review
|
Fiscal
2020
|
Fiscal
2019
|
Change
|
Revenue
|
$13.6
billion
|
$12.7
billion
|
$0.9
billion
|
Net
Revenue
|
$11.0
billion
|
$10.2
billion
|
$0.8
billion
|
GAAP Net Earnings
from Continuing Operations
|
$354
million
|
$291
million
|
$63
million
|
GAAP Earnings Per
Diluted Share (EPS) from Continuing
Operations
|
$2.67
|
$2.09
|
$0.58
|
Adjusted Net
Earnings from Continuing Operations
|
$727
million
|
$704
million
|
$23
million
|
Adjusted EPS from
Continuing Operations
|
$5.48
|
$5.05
|
$0.43
|
The company's adjusted net earnings and adjusted EPS for fiscal
2020 and fiscal 2019 exclude the charges and costs set forth in the
table below. For additional information regarding these adjustments
and a reconciliation of adjusted net earnings and adjusted EPS to
net earnings and EPS, respectively, as well as a reconciliation of
net revenue to revenue, refer to the section entitled "Non-GAAP
Financial Measures" at the end of this release.
|
Fiscal
2020
|
Fiscal
2019
|
GAAP Net Earnings
from Continuing Operations and Diluted Earnings Per Share
(EPS)
|
$354 million ($2.67
per
share)
|
$291 million ($2.09
per
share)
|
After-tax
restructuring and other charges ($330.2 million and $311.5 million
for the fiscal 2020 and 2019 periods, respectively, before income
taxes).
|
$248 million ($1.87
per
diluted share)
|
$260 million ($1.86
per
diluted share)
|
Other adjustments
include:
(a) addback of
amortization of intangible assets of $90.6 million and $79.1
million in the 2020 and 2019 periods, respectively,
(b) the allocation to
discontinued operations of estimated stranded corporate costs of
$14.8 million in the fiscal 2019 year that were reimbursed or
otherwise eliminated in connection with the sale of the ECR
business,
(c) the
reclassification of revenues under the Company's Transition
Services Agreement (TSA) with Worley of $15.8 million and $35.4
million included in other income for U.S. GAAP reporting purposes
to SG&A and the exclusion of $0.3 million and $3.9 million in
remaining unreimbursed costs associated with the TSA during in the
2020 and 2019 periods, respectively,
(d) the allocation to
discontinued operations of estimated interest expense amounts in
2019 related to long-term debt that has been paid down in
connection with the sale of the ECR business of $42.3
million,
(e) the removal of
$74.5 million and $64.8 million in fair value adjustments related
to our investment in Worley stock (net of Worley stock dividend)
and certain foreign currency revaluations relating to ECR sale in
the 2020 and 2019 periods, respectively,
(f) the exclusion of
a $37 million one-time favorable adjustment in the 2019 period
associated with reduction of deferred income taxes for permanently
reinvested earnings from non-U.S. subsidiaries in connection with
the sale of the ECR business,
(g) the add-back of
charges resulting from the revaluation of certain deferred tax
assets/liabilities in connection with U.S. tax reform of $35.0
million and other income tax adjustments of $1.5 million in the
2019 period and
(h) associated income
tax expense adjustments for the above pre-tax adjustment
items.
|
$125 million ($0.94
per
diluted share)
|
$153 million ($1.10
per
diluted share)
|
Adjusted Net
Earnings from Continuing Operations and Adjusted EPS from
Continuing Operations
|
$727 million ($5.48
per
diluted share)
|
$704 million ($5.05
per
diluted share)
|
(note: earnings
per share amounts may not add due to rounding)
|
Fiscal year 2020 adjusted earnings per share from continuing
operations reflect an adjusted effective tax rate of 23.2%,
excluding net favorable discrete tax impacts of $39.9 million, or $0.30
cents per share.
Jacobs is hosting a conference call at 10:00 A.M. ET on
Tuesday November 24, 2020, which will
be webcast live at www.jacobs.com.
About Jacobs
At Jacobs, we're challenging today to reinvent tomorrow by
solving the world's most critical problems for thriving cities,
resilient environments, mission-critical outcomes, operational
advancement, scientific discovery and cutting-edge manufacturing,
turning abstract ideas into realities that transform the world for
good. With approximately $14 billion
in annual revenue and a talent force of approximately 55,000,
Jacobs provides a full spectrum of professional services including
consulting, technical, scientific and project delivery for the
government and private sectors. Visit jacobs.com and connect with
Jacobs on LinkedIn, Twitter, Facebook and Instagram.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements as such term is defined in Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and such statements
are intended to be covered by the safe harbor provided by the same.
Statements made in this press release that are not based on
historical fact are forward-looking statements. Examples of
forward-looking statements include, but are not limited to,
statements we make concerning the potential continued effects of
the COVID-19 pandemic on our business, financial condition and
results of operations and our expectations as to our future growth,
prospects, financial outlook and business strategy for fiscal 2021
or future fiscal years. 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 as actual results may
differ materially. We caution the reader that there are a variety
of risks, uncertainties and other factors that could cause actual
results to differ materially from what is contained, projected or
implied by our forward-looking statements. Such factors include the
magnitude, timing, duration and ultimate impact of the COVID-19
pandemic and any resulting economic downturn on our results,
prospects and opportunities, the timeline for easing or removing
"shelter-in-place", "stay-at-home", social distancing, travel
restrictions and similar orders, measures or restrictions imposed
by governments and health officials in response to the pandemic, or
if such orders, measures or restrictions are re-imposed after being
lifted or eased, including as a result of increases in cases of
COVID-19; and the development, effectiveness and distribution of
vaccines or treatments for COVID-19. The impact of such matters
includes, but is not limited to, the possible reduction in demand
for certain of our services and the delay or abandonment of ongoing
or anticipated projects due to the financial condition of our
clients and suppliers or to governmental budget constraints; the
inability of our clients to meet their payment obligations in a
timely manner or at all; potential issues and risks related to a
significant portion of our employees working remotely; illness,
travel restrictions and other workforce disruptions that could
negatively affect our supply chain and our ability to timely and
satisfactorily complete our clients' projects; difficulties
associated with hiring additional employees or replacing any
furloughed employees; increased volatility in the capital markets
that may affect our ability to access sources of liquidity on
acceptable pricing or borrowing terms or at all; and the inability
of governments in certain of the countries in which we operate to
effectively mitigate the financial or other impacts of the COVID-19
pandemic on their economies and workforces and our operations
therein. The foregoing factors and potential future developments
are inherently uncertain, unpredictable and, in many cases, beyond
our control. For a description of these and additional factors that
may occur that could cause actual results to differ from our
forward-looking statements see our Annual Report on Form 10-K for
the year ended October 2, 2020, and in particular the
discussions contained therein 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, as well as the Company's other filings with the
Securities and Exchange Commission. The Company is not under any
duty to update any of the forward-looking statements after the date
of this press release to conform to actual results, except as
required by applicable law.
Financial Highlights:
Results of
Operations (in thousands, except per-share data) (Quarterly data
unaudited):
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
October 2,
2020
|
|
September 27,
2019
|
|
October 2,
2020
|
|
September 27,
2019
|
Revenues
|
$
|
3,519,689
|
|
|
$
|
3,392,862
|
|
|
$
|
13,566,975
|
|
|
$
|
12,737,868
|
|
Direct cost of
contracts
|
(2,854,754)
|
|
|
(2,727,329)
|
|
|
(10,980,307)
|
|
|
(10,260,840)
|
|
Gross
profit
|
664,935
|
|
|
665,533
|
|
|
2,586,668
|
|
|
2,477,028
|
|
Selling, general and
administrative expenses
|
(642,461)
|
|
|
(566,447)
|
|
|
(2,050,695)
|
|
|
(2,072,177)
|
|
Operating
Profit
|
22,474
|
|
|
99,086
|
|
|
535,973
|
|
|
404,851
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
Interest
income
|
1,550
|
|
|
2,315
|
|
|
4,729
|
|
|
9,487
|
|
Interest
expense
|
(14,131)
|
|
|
(10,120)
|
|
|
(62,206)
|
|
|
(83,847)
|
|
Miscellaneous income
(expense), net
|
50,265
|
|
|
(37,744)
|
|
|
(37,293)
|
|
|
20,468
|
|
Total other income
(expense), net
|
37,684
|
|
|
(45,549)
|
|
|
(94,770)
|
|
|
(53,892)
|
|
Earnings From
Continuing Operations Before Taxes
|
60,158
|
|
|
53,537
|
|
|
441,203
|
|
|
350,959
|
|
Income Tax Benefit
(Expense) for Continuing Operations
|
19,721
|
|
|
(24,124)
|
|
|
(55,320)
|
|
|
(36,954)
|
|
Net Earnings of the
Group from Continuing Operations
|
79,879
|
|
|
29,413
|
|
|
385,883
|
|
|
314,005
|
|
Net Earnings of the
Group from Discontinued Operations
|
12,474
|
|
|
120,378
|
|
|
137,984
|
|
|
559,214
|
|
Net Earnings of the
Group
|
92,353
|
|
|
149,791
|
|
|
523,867
|
|
|
873,219
|
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(10,360)
|
|
|
(7,467)
|
|
|
(32,022)
|
|
|
(23,045)
|
|
Net Earnings
Attributable to Jacobs from Continuing
Operations
|
69,519
|
|
|
21,946
|
|
|
353,861
|
|
|
290,960
|
|
Net Earnings
Attributable to Noncontrolling Interests from
Discontinued Operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,195)
|
|
Net Earnings
Attributable to Jacobs from Discontinued
Operations
|
12,474
|
|
|
120,378
|
|
|
137,984
|
|
|
557,019
|
|
Net Earnings
Attributable to Jacobs
|
$
|
81,993
|
|
|
$
|
142,324
|
|
|
$
|
491,845
|
|
|
$
|
847,979
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per Share
|
$
|
0.53
|
|
|
$
|
0.16
|
|
|
$
|
2.69
|
|
|
$
|
2.11
|
|
Basic Net Earnings
from Discontinued Operations Per
Share
|
$
|
0.10
|
|
|
$
|
0.89
|
|
|
$
|
1.05
|
|
|
$
|
4.03
|
|
Basic Earnings Per
Share
|
$
|
0.63
|
|
|
$
|
1.06
|
|
|
$
|
3.74
|
|
|
$
|
6.14
|
|
Diluted Net Earnings
from Continuing Operations Per
Share
|
$
|
0.53
|
|
|
$
|
0.16
|
|
|
$
|
2.67
|
|
|
$
|
2.09
|
|
Diluted Net Earnings
from Discontinued Operations Per
Share
|
$
|
0.09
|
|
|
$
|
0.88
|
|
|
$
|
1.04
|
|
|
$
|
4.00
|
|
Diluted Earnings Per
Share
|
$
|
0.62
|
|
|
$
|
1.04
|
|
|
$
|
3.71
|
|
|
$
|
6.08
|
|
Segment
Information (in thousands) (Quarterly data and Non-GAAP
unaudited):
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
October 2,
2020
|
|
September 27,
2019
|
|
October 2,
2020
|
|
September 27,
2019
|
Revenues from
External Customers:
|
|
|
|
|
|
|
|
Critical Mission
Solutions
|
$
|
1,328,975
|
|
|
$
|
1,300,137
|
|
|
$
|
4,965,952
|
|
|
$
|
4,551,162
|
|
People & Places
Solutions
|
2,190,714
|
|
|
2,092,725
|
|
|
8,601,023
|
|
|
8,186,706
|
|
Pass Through
Revenue
|
(687,980)
|
|
|
(702,786)
|
|
|
(2,609,843)
|
|
|
(2,543,358)
|
|
People & Places
Solutions Net Revenue
|
$
|
1,502,734
|
|
|
$
|
1,389,939
|
|
|
$
|
5,991,180
|
|
|
$
|
5,643,348
|
|
Total Revenue
|
$
|
3,519,689
|
|
|
$
|
3,392,862
|
|
|
$
|
13,566,975
|
|
|
$
|
12,737,868
|
|
Net
Revenue
|
$
|
2,831,709
|
|
|
$
|
2,690,076
|
|
|
$
|
10,957,132
|
|
|
$
|
10,194,510
|
|
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
October 2,
2020
|
|
September 27,
2019
|
|
October 2,
2020
|
|
September 27,
2019
|
Segment Operating
Profit:
|
|
|
|
|
|
|
|
Critical Mission
Solutions
|
$
|
107,748
|
|
|
$
|
87,754
|
|
|
$
|
372,070
|
|
|
$
|
310,043
|
|
People & Places
Solutions (1)
|
182,843
|
|
|
198,929
|
|
|
740,707
|
|
|
714,394
|
|
Total Segment
Operating Profit
|
290,591
|
|
|
286,683
|
|
|
1,112,777
|
|
|
1,024,437
|
|
Other Corporate
Expenses (2)
|
(56,243)
|
|
|
(78,679)
|
|
|
(249,391)
|
|
|
(264,351)
|
|
Restructuring and
Other Charges
|
(211,874)
|
|
|
(108,918)
|
|
|
(327,413)
|
|
|
(355,235)
|
|
Total U.S. GAAP
Operating Profit
|
22,474
|
|
|
99,086
|
|
|
535,973
|
|
|
404,851
|
|
Total other income
(expense), net (3)
|
37,684
|
|
|
(45,549)
|
|
|
(94,770)
|
|
|
(53,892)
|
|
Earnings from
Continuing Operations Before Taxes
|
$
|
60,158
|
|
|
$
|
53,537
|
|
|
$
|
441,203
|
|
|
$
|
350,959
|
|
(1)
|
Includes $25.0
million in charges associated with a certain project for the year
ended September 27, 2019.
|
(2)
|
Other corporate
expenses include costs that were previously allocated to the ECR
segment prior to discontinued operations presentation in connection
with the ECR sale in the approximate amount of $6.4 million for the
year ended September 27, 2019. Other corporate expenses also
includes intangibles amortization of $23.5 million and $23.4
million for the three-month periods ended October 2, 2020 and
September 27, 2019, respectively, and $90.6 million and $79.1
million for the years ended October 2, 2020 and
September 27, 2019, respectively.
|
(3)
|
Other income and
expense includes gain on the settlement of the CH2M retiree medical
plans of $0.4 million and $35.0 million for the three month period
and year ended September 27, 2019. Includes the amortization
of deferred financing fees related to the CH2M acquisition of $1.8
million and $3.2 million for the three month period and year ended
September 27, 2019, respectively. Includes revenues under the
Company's TSA with Worley of $0.1 million and $21.3 million for the
three-month periods ended October 2, 2020 and
September 27, 2019, respectively, and $15.8 million and $35.4
million and for the years ended October 2, 2020 and
September 27, 2019, respectively. Also includes $44.5 million
and $64.8 million in fair value adjustments related to our
investment in Worley stock (net of Worley Stock dividends) and
certain foreign currency revaluations relating to ECR sale proceeds
for the three-month periods ended October 2, 2020 and
September 27, 2019, respectively, and $74.3 million and $64.8
million for the years ended October 2, 2020 and
September 27, 2019, respectively.
|
Balance Sheet
(in thousands):
|
|
|
October 2,
2020
|
|
September 27,
2019
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
862,424
|
|
|
$
|
631,068
|
|
Receivables and
contract assets
|
3,167,310
|
|
|
2,840,209
|
|
Prepaid expenses and
other
|
162,355
|
|
|
189,358
|
|
Investment in equity
securities
|
347,510
|
|
|
451,133
|
|
Total current
assets
|
4,539,599
|
|
|
4,111,768
|
|
Property, Equipment
and Improvements, net
|
319,371
|
|
|
308,143
|
|
Other Noncurrent
Assets:
|
|
|
|
Goodwill
|
5,639,091
|
|
|
5,432,544
|
|
Intangibles,
net
|
658,340
|
|
|
665,076
|
|
Deferred income tax
assets
|
211,047
|
|
|
514,633
|
|
Operating lease
right-of-use assets
|
576,915
|
|
|
—
|
|
Miscellaneous
|
409,990
|
|
|
430,547
|
|
Total other noncurrent
assets
|
7,495,383
|
|
|
7,042,800
|
|
|
$
|
12,354,353
|
|
|
$
|
11,462,711
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Short-term
debt
|
$
|
—
|
|
|
$
|
199,901
|
|
Accounts
payable
|
1,061,754
|
|
|
1,072,645
|
|
Accrued
liabilities
|
1,249,883
|
|
|
1,386,952
|
|
Operating lease
liability
|
164,312
|
|
|
—
|
|
Contract
liabilities
|
465,648
|
|
|
414,208
|
|
Total current
liabilities
|
2,941,597
|
|
|
3,073,706
|
|
Long-term
debt
|
1,676,941
|
|
|
1,201,245
|
|
Liabilities relating
to defined benefit pension and retirement plans
|
568,176
|
|
|
575,897
|
|
Deferred income tax
liabilities
|
3,366
|
|
|
233,111
|
|
Long-term operating
lease liability
|
735,202
|
|
|
—
|
|
Other deferred
liabilities
|
573,404
|
|
|
610,094
|
|
Commitments and
Contingencies
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Capital
stock:
|
|
|
|
Preferred stock, $1
par value, authorized - 1,000,000 shares; issued and
outstanding - none
|
—
|
|
|
—
|
|
Common stock, $1 par
value, authorized - 240,000,000 shares; issued and
outstanding - 129,747,783 shares and 132,879,395 shares as of
October 2,
2020 and September 27, 2019, respectively
|
129,748
|
|
|
132,879
|
|
Additional paid-in
capital
|
2,598,446
|
|
|
2,559,450
|
|
Retained
earnings
|
4,020,575
|
|
|
3,939,174
|
|
Accumulated other
comprehensive loss
|
(933,057)
|
|
|
(916,812)
|
|
Total Jacobs
stockholders' equity
|
5,815,712
|
|
|
5,714,691
|
|
Noncontrolling
interests
|
39,955
|
|
|
53,967
|
|
Total Group
stockholders' equity
|
5,855,667
|
|
|
5,768,658
|
|
|
$
|
12,354,353
|
|
|
$
|
11,462,711
|
|
Cash Flows (In
thousands) (Quarterly data unaudited)
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
October 2,
2020
|
|
September 27,
2019
|
|
October 2,
2020
|
|
September 27,
2019
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net earnings
attributable to the Group
|
$
|
92,353
|
|
|
$
|
149,791
|
|
|
$
|
523,867
|
|
|
$
|
873,219
|
|
Adjustments to
reconcile net earnings to net cash flows provided by (used for)
operations:
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
Property, equipment
and improvements
|
24,076
|
|
|
20,508
|
|
|
91,070
|
|
|
90,171
|
|
Intangible
assets
|
23,489
|
|
|
22,752
|
|
|
90,563
|
|
|
79,098
|
|
Gain on sale of ECR
business
|
3,130
|
|
|
(17,416)
|
|
|
(110,236)
|
|
|
(935,110)
|
|
Loss on disposal
of other businesses and investments
|
—
|
|
|
—
|
|
|
—
|
|
|
9,608
|
|
(Gain)
Loss on investment in equity securities
|
(35,252)
|
|
|
80,283
|
|
|
103,623
|
|
|
78,108
|
|
Stock based
compensation
|
11,942
|
|
|
21,796
|
|
|
48,150
|
|
|
69,137
|
|
Equity in earnings of
operating ventures, net of return on capital
distributions
|
10,861
|
|
|
(1,152)
|
|
|
9,172
|
|
|
(8,784)
|
|
Loss on disposals of
assets, net
|
1,067
|
|
|
4,224
|
|
|
766
|
|
|
6,222
|
|
Impairment of
long-lived assets
|
162,238
|
|
|
—
|
|
|
162,238
|
|
|
—
|
|
Loss (Gain) on
pension and retiree medical plan changes
|
1,947
|
|
|
1,534
|
|
|
4,598
|
|
|
(33,087)
|
|
Deferred income
taxes
|
19,802
|
|
|
(158,531)
|
|
|
82,275
|
|
|
(105,939)
|
|
Changes in assets and
liabilities, excluding the effects of businesses
acquired:
|
|
|
|
|
|
|
|
Receivables and
contract assets, net of contract liabilities
|
27,831
|
|
|
(85,040)
|
|
|
(107,784)
|
|
|
(67,894)
|
|
Prepaid expenses and
other current assets
|
(47,182)
|
|
|
(19,116)
|
|
|
(27,280)
|
|
|
(13,117)
|
|
Accounts
payable
|
22,242
|
|
|
227,368
|
|
|
(92,838)
|
|
|
295,146
|
|
Income taxes
payable
|
5,036
|
|
|
(367,659)
|
|
|
35,194
|
|
|
(294,995)
|
|
Accrued
liabilities
|
81,172
|
|
|
(71,873)
|
|
|
(27,849)
|
|
|
(305,716)
|
|
Other deferred
liabilities
|
(7,964)
|
|
|
23,212
|
|
|
(64,390)
|
|
|
(106,256)
|
|
Other, net
|
35,585
|
|
|
23,196
|
|
|
85,710
|
|
|
3,753
|
|
Net cash provided by
(used for) operating activities
|
432,373
|
|
|
(146,123)
|
|
|
806,849
|
|
|
(366,436)
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Additions to property
and equipment
|
(29,448)
|
|
|
(29,307)
|
|
|
(118,269)
|
|
|
(135,977)
|
|
Disposals of property
and equipment and other assets
|
—
|
|
|
(123)
|
|
|
96
|
|
|
7,177
|
|
Capital contributions
to equity investees, net of return of capital
distributions
|
80
|
|
|
(4,857)
|
|
|
(12,278)
|
|
|
(8,761)
|
|
Acquisitions of
businesses, net of cash acquired
|
(7,046)
|
|
|
—
|
|
|
(293,580)
|
|
|
(575,110)
|
|
Disposals of
investment in equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
64,708
|
|
Proceeds (payments)
related to sales of businesses
|
—
|
|
|
4,691
|
|
|
(5,061)
|
|
|
2,801,425
|
|
Purchases of noncontrolling
interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,113)
|
|
Net cash (used for)
provided by investing activities
|
(36,414)
|
|
|
(29,596)
|
|
|
(429,092)
|
|
|
2,152,349
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Net (repayments of)
proceeds from borrowings
|
(491,244)
|
|
|
157,046
|
|
|
265,264
|
|
|
(1,043,342)
|
|
Debt issuance
costs
|
—
|
|
|
(174)
|
|
|
(1,807)
|
|
|
(3,915)
|
|
Proceeds from
issuances of common stock
|
8,442
|
|
|
18,815
|
|
|
37,235
|
|
|
64,958
|
|
Common stock
repurchases
|
(51,429)
|
|
|
(329,058)
|
|
|
(337,251)
|
|
|
(853,676)
|
|
Taxes paid on vested
restricted stock
|
(139)
|
|
|
(454)
|
|
|
(27,794)
|
|
|
(26,641)
|
|
Cash dividends,
including to noncontrolling interests
|
(46,441)
|
|
|
(24,139)
|
|
|
(143,962)
|
|
|
(106,396)
|
|
Net cash used for
financing activities
|
(580,811)
|
|
|
(177,964)
|
|
|
(208,315)
|
|
|
(1,969,012)
|
|
Effect of Exchange
Rate Changes
|
22,466
|
|
|
(13,491)
|
|
|
61,914
|
|
|
20,809
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
(162,386)
|
|
|
(367,174)
|
|
|
231,356
|
|
|
(162,290)
|
|
Cash and Cash
Equivalents at the Beginning of the Period
|
1,024,810
|
|
|
998,242
|
|
|
631,068
|
|
|
793,358
|
|
Cash and Cash
Equivalents at the End of the Period
|
$
|
862,424
|
|
|
$
|
631,068
|
|
|
$
|
862,424
|
|
|
$
|
631,068
|
|
|
See the
accompanying Notes to Consolidated Financial
Statements.
|
Backlog (in
millions):
|
|
Unaudited
|
October 2,
2020
|
|
September 27,
2019
|
Critical Mission
Solutions
|
$
|
9,104
|
|
|
$
|
8,460
|
|
People & Places
Solutions
|
14,714
|
|
|
14,109
|
|
Total
|
$
|
23,818
|
|
|
$
|
22,569
|
|
Non-GAAP Financial Measures:
In this press release, the Company has included certain non-GAAP
financial measures as defined in Regulation G promulgated under the
Securities Exchange Act of 1934, as amended. The non-GAAP financial
measures included in this press release are net revenue, adjusted
net earnings from continuing operations, adjusted EPS from
continuing operations, adjusted EBITDA and free cash
flow.
Net revenue is calculated excluding pass-through revenue of the
Company's People & Places Solutions segment from the Company's
revenue from continuing operations. Adjusted net earnings from
continuing operations and adjusted EPS from continuing operations
are calculated by (i) excluding the costs related to our 2015
restructuring activities, which included involuntary terminations,
the abandonment of certain leased offices, combining operational
organizations and the co-location of employees into other existing
offices; and charges associated with our Europe, U.K. and Middle East region, which included write-offs
on contract accounts receivable and charges for statutory
redundancy and severance costs; (ii) excluding costs and other
charges associated with restructuring activities implemented in
connection with the acquisitions of The KeyW Holding Corporation
("KeyW"), CH2M and John Wood Group nuclear business, the sale of
the ECR business and other related cost reduction initiatives,
which included involuntary terminations, costs associated with
co-locating Jacobs, KeyW and CH2M offices, separating physical
locations of ECR and continuing operations, costs and expenses of
the Integration Management Office and Separation Management Office,
including professional services and personnel costs, costs and
charges associated with the divestiture of joint venture interests
to resolve potential conflicts arising from the CH2M acquisition,
expenses relating to certain commitments and contingencies relating
to discontinued operations of the CH2M business, charges associated
with certain operations in India,
which included write-offs on contract accounts receivable and other
accruals, and similar costs and expenses; (iii) excluding the costs
and other charges associated with the Focus 2023 initiatives
commenced in the fourth quarter of fiscal 2020, which included
costs and charges associated with the re-scaling and repurposing of
physical office space, voluntary employee separations and related
expenses (the amounts referred in (i), (ii) and (iii) are
collectively referred to as the "Restructuring and other charges");
(iv) excluding transaction costs and other charges incurred in
connection with closing of the KeyW, CH2M and John Wood Group
nuclear business acquisitions, and sale of the ECR business (to the
extent incurred prior to the closing), including advisor fees,
change in control payments, costs and expenses relating to the
registration and listing of Jacobs stock issued in connection with
the CH2M acquisition, and similar transaction costs and expenses
(collectively referred to as "transaction costs"); (v) adding back
amortization of intangible assets; (vi) allocating to discontinued
operations estimated stranded corporate costs that will be
reimbursed or otherwise eliminated in connection with the sale of
the ECR business; (vii) the reclassification of revenue under the
Company's transition services agreement (TSA) with Worley included
in other income for U.S. GAAP reporting purposes to SG&A and
the exclusion of remaining unreimbursed costs associated with the
TSA; (viii) allocating to discontinued operations estimated
interest expense relating to long-term debt that was paid down with
the proceeds of the ECR sale; (ix) the removal of fair value
adjustments and dividend income related to the Company's investment
in Worley stock and certain foreign currency revaluations relating
to ECR sale proceeds; (x) the exclusion of a one-time favorable
adjustment in the fiscal 2019 period associated with a reduction of
deferred income taxes for permanently reinvested earnings from
non-U.S. subsidiaries in connection with the sale of the ECR
business; (xi) excluding charges resulting from the revaluation of
certain deferred tax assets/liabilities in connection with U.S. tax
reform; (xii) adding back depreciation and amortization relating to
the ECR business of the Company that was ceased as a result of the
application of held-for-sale accounting; and (xiii) other income
tax adjustments. Adjustments to derive adjusted net earnings from
continuing operations and adjusted EPS from continuing operations
are calculated on an after-tax basis. We believe that net revenue,
adjusted net earnings from continuing operations, adjusted EPS from
continuing operations, adjusted EBITDA and free cash flow are
useful to management, investors and other users of our financial
information in evaluating the Company's operating results and
understanding the Company's operating trends by excluding or adding
back the effects of the items described above and below, the
inclusion or exclusion of which can obscure underlying trends.
Additionally, management uses such measures in its own evaluation
of the Company's performance, particularly when comparing
performance to past periods, and believes these measures are useful
for investors because they facilitate a comparison of our financial
results from period to period.
The Company calculates adjusted EBITDA by adding income tax
expense, depreciation expense and interest expense, and deducting
interest income from adjusted net earnings from continuing
operations.
Free cash flow is calculated using the reported statement of
cash flows, provided from operations less additions to property and
equipment.
The Company provides non-GAAP measures to supplement U.S. GAAP
measures, as they provide additional insight into the Company's
financial results. However, non-GAAP measures have limitations as
analytical tools and should not be considered in isolation and are
not in accordance with, or a substitute for, U.S. GAAP measures. In
addition, other companies may define non-GAAP measures differently,
which limits the ability of investors to compare non-GAAP measures
of the Company to those used by our peer companies.
The following tables reconcile the components and values of U.S.
GAAP revenue, net earnings from continuing operations, and EPS from
continuing operations to the corresponding "adjusted" amounts and
the reconciliation of cash flow from operations to free cash flow
and adjusted net earnings to adjusted EBITDA. For the comparable
periods presented below, such adjustments consist of amounts
incurred in connection with the items described above. Amounts are
shown in thousands, except for per-share data (note: earnings per
share amounts may not add across due to rounding). Reconciliation
of the adjusted EPS and adjusted EBITDA outlook for the full fiscal
year 2021 to the most directly comparable GAAP measure is not
available without unreasonable efforts because the Company cannot
predict with sufficient certainty all the components required to
provide such reconciliation (note: earnings per share amounts may
not add across due to rounding).
U.S. GAAP
Reconciliation for the fourth quarter of fiscal 2020 and
2019
|
|
|
|
Three Months
Ended
|
|
|
October 2,
2020
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring,
Transaction and
Other Charges (1)
|
|
Other
Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$
|
3,519,689
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,519,689
|
|
Pass through
revenue
|
—
|
|
|
—
|
|
(687,980)
|
|
(687,980)
|
|
Net
revenue
|
3,519,689
|
|
|
—
|
|
(687,980)
|
|
2,831,709
|
|
Direct cost of
contracts
|
(2,854,754)
|
|
|
449
|
|
687,980
|
|
(2,166,325)
|
|
Gross
profit
|
664,935
|
|
|
449
|
|
—
|
|
665,384
|
|
Selling, general and
administrative expenses
|
(642,461)
|
|
|
211,425
|
|
23,567
|
|
(407,469)
|
|
Operating
Profit
|
22,474
|
|
|
211,874
|
|
23,567
|
|
257,915
|
|
Total other income
(expense), net
|
37,684
|
|
|
—
|
|
(45,046)
|
|
(7,362)
|
|
Earnings from
Continuing Operations Before Taxes
|
60,158
|
|
|
211,874
|
|
(21,479)
|
|
250,553
|
|
Income Tax Benefit
(Expense) for Continuing Operations
|
19,721
|
|
|
(50,861)
|
|
5,287
|
|
(25,853)
|
|
Net Earnings of the
Group from Continuing Operations
|
79,879
|
|
|
161,013
|
|
(16,192)
|
|
224,700
|
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(10,360)
|
|
|
—
|
|
—
|
|
(10,360)
|
|
Net Earnings from
Continuing Operations attributable to
Jacobs
|
69,519
|
|
|
161,013
|
|
(16,192)
|
|
214,340
|
|
Net Earnings
attributable to Discontinued Operations
|
12,474
|
|
|
—
|
|
—
|
|
12,474
|
|
Net Earnings
attributable to Jacobs
|
$
|
81,993
|
|
|
$
|
161,013
|
|
$
|
(16,192)
|
|
$
|
226,814
|
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
0.53
|
|
|
$
|
1.22
|
|
$
|
(0.12)
|
|
$
|
1.63
|
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
0.09
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
0.09
|
|
Diluted Earnings Per
Share
|
$
|
0.62
|
|
|
$
|
1.22
|
|
$
|
(0.12)
|
|
$
|
1.73
|
|
Operating Profit
Margin
|
0.64
|
%
|
|
|
|
|
|
9.11
|
%
|
(1)
|
Includes after-tax
charges for the Company's fourth quarter fiscal 2020 transformation
initiatives relating to real estate of $123.1 million, and other
staffing programs of $23.5 million and $14.4 million of other
restructuring, transaction and other charges.
|
(2)
|
Includes (a) the
removal of pass through revenues and costs for the People &
Places Solutions line of business for the calculation of operating
profit margin as a percentage of net revenue of $688.0 million, (b)
the removal of amortization of intangible assets of $23.5 million,
(c) the reclassification of revenues under the Company's TSA of
$0.6 million included in other income for U.S. GAAP reporting
purposes to SG&A, (d) the removal of $44.5 million in fair
value adjustments related to our investment in Worley stock (net of
Worley stock dividend) and certain foreign currency revaluations
relating to the ECR sale and (e) associated income tax
expense adjustments for the above pre-tax adjustment
items.
|
|
Three Months
Ended
|
|
September 27,
2019
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring,
Transaction and
Other Charges (1)
|
|
Other
Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$
|
3,392,862
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,392,862
|
Pass through
revenue
|
—
|
|
—
|
|
(702,786)
|
|
(702,786)
|
Net
revenue
|
3,392,862
|
|
—
|
|
(702,786)
|
|
2,690,076
|
Direct cost of
contracts
|
(2,727,329)
|
|
3,000
|
|
702,786
|
|
(2,021,543)
|
Gross
profit
|
665,533
|
|
3,000
|
|
—
|
|
668,533
|
Selling, general and
administrative expenses
|
(566,447)
|
|
105,918
|
|
45,301
|
|
(415,228)
|
Operating
Profit
|
99,086
|
|
108,918
|
|
45,301
|
|
253,305
|
Total other (expense)
income, net
|
(45,549)
|
|
4,534
|
|
43,530
|
|
2,515
|
Earnings from
Continuing Operations Before Taxes
|
53,537
|
|
113,452
|
|
88,831
|
|
255,820
|
Income Tax Expense
for Continuing Operations
|
(24,124)
|
|
(25,089)
|
|
2,060
|
|
(47,153)
|
Net Earnings of the
Group from Continuing Operations
|
29,413
|
|
88,363
|
|
90,891
|
|
208,667
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(7,467)
|
|
—
|
|
—
|
|
(7,467)
|
Net Earnings from
Continuing Operations attributable to
Jacobs
|
21,946
|
|
88,363
|
|
90,891
|
|
201,200
|
Net Earnings
attributable to Discontinued Operations
|
120,378
|
|
—
|
|
—
|
|
120,378
|
Net Earnings
attributable to Jacobs
|
$
|
142,324
|
|
$
|
88,363
|
|
$
|
90,891
|
|
$
|
321,578
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
0.16
|
|
$
|
0.65
|
|
$
|
0.67
|
|
$
|
1.48
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
0.88
|
|
$
|
—
|
|
$
|
—
|
|
$
|
0.88
|
Diluted Earnings Per
Share
|
$
|
1.04
|
|
$
|
0.65
|
|
$
|
0.67
|
|
$
|
2.36
|
Operating Profit
Margin
|
2.92%
|
|
|
|
|
|
9.42%
|
(1)
|
Includes after-tax
CH2M transaction costs and adjustments of $1.3 million, after-tax
transaction costs associated with the acquisition of KeyW of $0.2
million and after tax-transaction costs associated with the
acquisition of John Wood Group's Nuclear Business of $3.9
million.
|
(2)
|
Includes (a) the
removal of pass through revenues and costs for the People &
Places Solutions line of business for the calculation of operating
profit margin as a percentage of net revenue of $702.8 million, (b)
the removal of amortization of intangible assets of $23.4 million,
(c) the reclassification of revenues under the Company's TSA of
$21.3 million included in other income for U.S. GAAP reporting
purposes to SG&A, (d) the removal of $64.8 million in fair
value adjustments related to our investment in Worley stock (net of
Worley stock dividend) and certain foreign currency revaluations
relating to the ECR sale, (e) the add-back of charges resulting
from the revaluation of certain deferred tax assets/liabilities in
connection with U.S. tax reform of $24.0 million and (f) associated
income tax expense adjustments for the above pre-tax adjustment
items.
|
U.S. GAAP
Reconciliation for fiscal years 2020 and 2019
|
|
|
For the Year
Ended
|
|
October 2,
2020
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring,
Transaction and
Other Charges (1)
|
|
Other
Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$
|
13,566,975
|
|
$
|
—
|
|
$
|
—
|
|
$
|
13,566,975
|
Pass through
revenue
|
—
|
|
—
|
|
(2,609,843)
|
|
(2,609,843)
|
Net
revenue
|
13,566,975
|
|
—
|
|
(2,609,843)
|
|
10,957,132
|
Direct cost of
contracts
|
(10,980,307)
|
|
2,290
|
|
2,609,843
|
|
(8,368,174)
|
Gross
profit
|
2,586,668
|
|
2,290
|
|
—
|
|
2,588,958
|
Selling, general and
administrative expenses
|
(2,050,695)
|
|
325,123
|
|
106,529
|
|
(1,619,043)
|
Operating
Profit
|
535,973
|
|
327,413
|
|
106,529
|
|
969,915
|
Total other expense,
net
|
(94,770)
|
|
2,799
|
|
58,674
|
|
(33,297)
|
Earnings from
Continuing Operations Before Taxes
|
441,203
|
|
330,212
|
|
165,203
|
|
936,618
|
Income Tax Expense
for Continuing Operations
|
(55,320)
|
|
(81,995)
|
|
(39,782)
|
|
(177,097)
|
Net Earnings of the
Group from Continuing Operations
|
385,883
|
|
248,217
|
|
125,421
|
|
759,521
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(32,022)
|
|
—
|
|
—
|
|
(32,022)
|
Net Earnings from
Continuing Operations attributable to
Jacobs
|
353,861
|
|
248,217
|
|
125,421
|
|
727,499
|
Net Earnings
attributable to Discontinued Operations
|
137,984
|
|
—
|
|
—
|
|
137,984
|
Net Earnings
attributable to Jacobs
|
$
|
491,845
|
|
$
|
248,217
|
|
$
|
125,421
|
|
$
|
865,483
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
2.67
|
|
$
|
1.87
|
|
$
|
0.94
|
|
$
|
5.48
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
|
1.04
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1.04
|
Diluted Earnings Per
Share
|
$
|
3.71
|
|
$
|
1.87
|
|
$
|
0.94
|
|
$
|
6.52
|
Operating Profit
Margin
|
3.95%
|
|
|
|
|
|
8.85%
|
(1)
|
Includes after-tax
charges for the Company's fourth quarter fiscal 2020 transformation
initiatives relating to real estate of $123.1 million, and other
staffing programs of $23.5 million and $101.6 million of other
restructuring, transaction and other charges.
|
(2)
|
Includes (a) the
removal of pass through revenues and costs for the People &
Places Solutions line of business for the calculation of operating
profit margin as a percentage of net revenue of $2.6 billion, (b)
the removal of amortization of intangible assets of $90.6 million,
(c) the reclassification of revenues under the TSA of $16.1 million
included in other income for U.S. GAAP reporting purposes to
SG&A, (d) the removal of $74.5 million in fair value
adjustments related to our investment in Worley stock (net of
Worley stock dividend) and certain foreign currency revaluations
relating to the ECR sale and (e) associated income tax expense
adjustments for the above pre-tax adjustment items.
|
|
For the Year
Ended
|
|
September 27,
2019
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring,
Transaction and
Other Charges (1)
|
|
Other
Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$
|
12,737,868
|
|
$
|
—
|
|
$
|
—
|
|
$
|
12,737,868
|
Pass through
revenue
|
—
|
|
—
|
|
(2,543,358)
|
|
(2,543,358)
|
Net
revenue
|
12,737,868
|
|
—
|
|
(2,543,358)
|
|
10,194,510
|
Direct cost of
contracts
|
(10,260,840)
|
|
4,969
|
|
2,543,358
|
|
(7,712,513)
|
Gross
profit
|
2,477,028
|
|
4,969
|
|
—
|
|
2,481,997
|
Selling, general and
administrative expenses
|
(2,072,177)
|
|
350,266
|
|
133,164
|
|
(1,588,747)
|
Operating
Profit
|
404,851
|
|
355,235
|
|
133,164
|
|
893,250
|
Total other expense,
net
|
(53,892)
|
|
(22,382)
|
|
71,639
|
|
(4,635)
|
Earnings from
Continuing Operations Before Taxes
|
350,959
|
|
332,853
|
|
204,803
|
|
888,615
|
Income Tax Expense
for Continuing Operations
|
(36,954)
|
|
(73,041)
|
|
(51,722)
|
|
(161,717)
|
Net Earnings of the
Group from Continuing Operations
|
314,005
|
|
259,812
|
|
153,081
|
|
726,898
|
Net Earnings
Attributable to Noncontrolling Interests from
Continuing Operations
|
(23,045)
|
|
—
|
|
—
|
|
(23,045)
|
Net Earnings from
Continuing Operations attributable to
Jacobs
|
290,960
|
|
259,812
|
|
153,081
|
|
703,853
|
Net Earnings
attributable to Discontinued Operations
|
557,019
|
|
8,361
|
|
(55,622)
|
|
509,758
|
Net Earnings
attributable to Jacobs
|
$
|
847,979
|
|
$
|
268,173
|
|
$
|
97,459
|
|
$
|
1,213,611
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
|
2.09
|
|
$
|
1.87
|
|
$
|
1.10
|
|
$
|
5.05
|
Diluted Net Earnings
from Discontinued Operations Per
Share
|
$
|
4.00
|
|
$
|
0.06
|
|
$
|
(0.40)
|
|
$
|
3.66
|
Diluted Earnings Per
Share
|
$
|
6.08
|
|
$
|
1.92
|
|
$
|
0.70
|
|
$
|
8.71
|
Operating Profit
Margin
|
3.18%
|
|
|
|
|
|
8.76%
|
(1)
|
Includes after-tax
CH2M transaction costs and adjustments of $2.4 million, after
tax-transaction costs associated with the sale of our ECR line of
business of $8.9 million, after-tax transaction costs associated
with the acquisition of KeyW of $9.8 million and after-tax
transaction costs associated with the acquisition of John Wood
Group's Nuclear Business of $3.9 million.
|
(2)
|
Includes (a) the
removal of pass through revenues and costs for the People &
Places Solutions line of business for the calculation of operating
profit margin as a percentage of net revenue of $2.54 billion, (b)
the removal of amortization of intangible assets of $79.1 million,
(c) the allocation to discontinued operations of estimated stranded
corporate costs of $14.8 million prior to the sale that was
reimbursed under the ECR transition service agreement (TSA) with
Worley or otherwise eliminated from the ongoing operations in
connection with the sale of the ECR business, (d) the
reclassification of revenues under the Company's TSA of $35.4
million included in other income for U.S. GAAP reporting purposes
to SG&A and the exclusion of $3.9 million in remaining
unreimbursed costs associated with this agreement, (e) the
allocation to discontinued operations of estimated interest expense
for the month of April prior to the sale related to long-term debt
that has been paid down as a result of the ECR sale of $42.3
million, (f) the removal of $64.8 million in fair value
adjustments related to our investment in Worley stock (net of
Worley stock dividend) and certain foreign currency revaluations
relating to the ECR sale and (g) the exclusion of approximately
$37.0 million in one-time favorable income tax adjustment from the
second quarter associated with reduction of deferred income taxes
for permanently reinvested earnings from non-U.S. subsidiaries in
connection with the sale of the ECR business, (h) the add-back of
charges resulting from the revaluation of certain deferred tax
assets/liabilities in connection with U.S. tax reform from the
first quarter of $35.0 million and other adjustments of $1.5
million, (i) the add-back of depreciation relating to the ECR
business that was ceased as a result of the application of
held-for-sale accounting of $17.3 million and (j) associated income
tax expense adjustments for the above pre-tax adjustment
items.
|
Reconciliation
of Adjusted EBITDA
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
10/2/2020
|
|
9/27/2019
|
Adj Net earnings from
Continuing Operations
|
$
|
727,499
|
|
|
$
|
703,853
|
|
Adj. Income Tax Expense for
Continuing Operations
|
(177,097)
|
|
|
(161,717)
|
|
Adj. Net earnings
from Continuing Operations attributable to Jacobs
before income taxes
|
904,596
|
|
|
865,570
|
|
Depreciation
expense
|
91,070
|
|
|
88,061
|
|
Interest income
|
(4,729)
|
|
|
(9,487)
|
|
Interest expense
|
61,508
|
|
|
38,399
|
|
Adjusted
EBITDA
|
$
|
1,052,445
|
|
|
$
|
982,543
|
|
|
|
Reconciliation
of Free Cash Flow
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
10/2/2020
|
|
10/2/2020
|
Net cash
provided by (used for) operating activities
|
$
|
432,373
|
|
|
$
|
806,849
|
|
Additions to property
and equipment
|
(29,448)
|
|
|
(118,269)
|
|
Free cash
flow
|
$
|
402,925
|
|
|
$
|
688,580
|
|
Earnings Per
Share:
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
October 2,
2020
|
|
September 27,
2019
|
|
October 2,
2020
|
|
September 27,
2019
|
Numerator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
Net earnings
attributable to Jacobs from continuing
operations
|
$
|
69,519
|
|
|
$
|
21,946
|
|
|
$
|
353,861
|
|
|
$
|
290,960
|
|
Net earnings from
continuing operations allocated to
participating securities
|
—
|
|
|
(16)
|
|
|
(72)
|
|
|
(415)
|
|
Net earnings from
continuing operations allocated to
common stock for EPS calculation
|
$
|
69,519
|
|
|
$
|
21,930
|
|
|
$
|
353,789
|
|
|
$
|
290,545
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Jacobs from discontinued
operations
|
$
|
12,474
|
|
|
$
|
120,378
|
|
|
$
|
137,984
|
|
|
$
|
557,019
|
|
Net earnings from
discontinued operations allocated to
participating securities
|
—
|
|
|
(88)
|
|
|
(28)
|
|
|
(795)
|
|
Net earnings from
discontinued operations allocated to
common stock for EPS calculation
|
$
|
12,474
|
|
|
$
|
120,290
|
|
|
$
|
137,956
|
|
|
$
|
556,224
|
|
|
|
|
|
|
|
|
|
Net earnings
allocated to common stock for EPS calculation
|
$
|
81,993
|
|
|
$
|
142,220
|
|
|
$
|
491,745
|
|
|
$
|
846,769
|
|
|
|
|
|
|
|
|
|
Denominator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
130,180
|
|
|
134,625
|
|
|
131,541
|
|
|
138,104
|
|
Shares allocated to
participating securities
|
—
|
|
|
(99)
|
|
|
(27)
|
|
|
(197)
|
|
Shares used for
calculating basic EPS attributable to
common stock
|
130,180
|
|
|
134,526
|
|
|
131,514
|
|
|
137,907
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
Stock compensation
plans
|
1,266
|
|
|
1,579
|
|
|
1,207
|
|
|
1,299
|
|
Shares used for
calculating diluted EPS attributable to
common stock
|
131,446
|
|
|
136,105
|
|
|
132,721
|
|
|
139,206
|
|
|
|
|
|
|
|
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per
Share
|
$
|
0.53
|
|
|
$
|
0.16
|
|
|
$
|
2.69
|
|
|
$
|
2.11
|
|
Basic Net Earnings
from Discontinued Operations Per
Share
|
$
|
0.10
|
|
|
$
|
0.89
|
|
|
$
|
1.05
|
|
|
$
|
4.03
|
|
Basic
EPS
|
$
|
0.63
|
|
|
$
|
1.06
|
|
|
$
|
3.74
|
|
|
$
|
6.14
|
|
Diluted Net Earnings
from Continuing Operations Per
Share
|
$
|
0.53
|
|
|
$
|
0.16
|
|
|
$
|
2.67
|
|
|
$
|
2.09
|
|
Diluted Net Earnings
from Discontinued Operations
Per Share
|
$
|
0.09
|
|
|
$
|
0.88
|
|
|
$
|
1.04
|
|
|
$
|
4.00
|
|
Diluted
EPS
|
$
|
0.62
|
|
|
$
|
1.04
|
|
|
$
|
3.71
|
|
|
$
|
6.08
|
|
For additional information contact:
Investors:
Jonathan Doros, 214-583-8596
jonathan.doros@jacobs.com
Media:
Marietta Hannigan, 214-920-8035
marietta.hannigan@jacobs.com
1Reflects continuing operations as reported in
accordance with GAAP.
2Reconciliation of the adjusted EPS outlook and adjusted
EBITDA outlook for the full fiscal year to the most directly
comparable GAAP measure is not available without unreasonable
efforts because the Company cannot predict with sufficient
certainty all the components required to provide such
reconciliation, including with respect to the costs and charges
relating to transaction expenses, restructuring and integration to
be incurred in fiscal 2021.
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SOURCE Jacobs