Jacobs Engineering Group Inc. Reports Solid Earnings For The Third Quarter Of Fiscal 2013

Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial results for the third quarter of fiscal 2013 ended June 28, 2013.

Third Quarter Fiscal 2013 Highlights:
  • Net earnings for the quarter of $108.9 million;
  • Diluted EPS for the quarter of $0.83;
  • Net earnings for the nine months ended June 28, 2013 of $312.3 million;
  • Diluted EPS for the nine months ended June 28, 2013 of $2.39; and,
  • Backlog at June 28, 2013 of $17.2 billion.

Jacobs reported today net earnings of $108.9 million, or $0.83 per diluted share, on revenues of $3.08 billion for its third quarter of fiscal 2013 ended June 28, 2013. This is up from net earnings of $97.9 million, or $0.76 per diluted share, on revenues of $2.77 billion for the third quarter of fiscal 2012 ended June 29, 2012.

For the nine months ended June 28, 2013, Jacobs reported net earnings of $312.3 million, or $2.39 per diluted share, on revenues of $8.68 billion. This compares to net earnings of $271.5 million, or $2.11 per diluted share, on revenues of $8.11 billion for the same period in fiscal 2012.

Jacobs also announced that backlog grew by 10.2% totaling $17.2 billion at June 28, 2013, including a technical professional services component of $11.1 billion. This compares to total backlog and technical professional services backlog of $15.6 billion and $10.2 billion, respectively, at June 29, 2012.

Commenting on the results for the third quarter, Jacobs President and CEO Craig L. Martin stated, “Third quarter results were good. Our earnings grew, backlog improved, and our overall operating performance met our expectations. We continue to see significant sales activity in most of our markets and our team demonstrated its ability to take market share throughout the quarter. We remain positive about the outlook for FY13.”

Commenting on the Company's earnings outlook for the remainder of fiscal 2013, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “Our third quarter results and outlook for the year continue to be in line with our previous guidance therefore we are reaffirming our guidance range of $3.00 to $3.50 per share.”

Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Tuesday, July 30, 2013, which it is webcasting live on the Internet at www.jacobs.com.

Jacobs is one of the world's largest and most diverse providers of technical, professional, and construction services.

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 including those noted in our 2012 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.

Financial Highlights:
 

Results of Operations (in thousands, except per-share data):
       
Three Months Ended Nine Months Ended
     

June 28,2013
   

June 29,2012
   

June 28,2013
   

June 29,2012
Revenues $ 3,080,995     $ 2,772,874 $ 8,675,720     $ 8,107,493
Costs and Expenses:
Direct costs of contracts (2,613,991 ) (2,339,793 ) (7,308,092 ) (6,827,166 )
Selling, general, and administrative expenses     (298,645 )     (279,715 )     (873,797 )     (851,871 )
Operating Profit 168,359 153,366 493,831 428,456
Other Income (Expense):
Interest income 1,332 2,325 3,521 5,283
Interest expense (2,786 ) (2,990 ) (9,515 ) (9,148 )
Miscellaneous income (expense), net     1,518       (1,330 )     (1,195 )     (1,351 )
Total other income (expense), net     64       (1,995 )     (7,189 )     (5,216 )
Earnings Before Taxes 168,423 151,371 486,642 423,240
Income Tax Expense     (56,334 )     (50,381 )     (162,941 )     (143,368 )
Net Earnings of the Group     112,089       100,990       323,701       279,872  
Net Earnings Attributable to

Noncontrolling Interests
    (3,218 )     (3,090 )     (11,419 )     (8,329 )
Net Earnings Attributable to Jacobs     $ 108,871       $ 97,900       $ 312,282       $ 271,543  
Earnings Per Share (“EPS”):
Basic $ 0.84 $ 0.77 $ 2.42 $ 2.13
Diluted     $ 0.83       $ 0.76       $ 2.39       $ 2.11  
 
Weighted Average Shares Used to Calculate EPS:
Basic 129,536 127,922 129,094 127,422
Diluted     131,295       128,820       130,590       128,504  
 

Other Operational Information (in thousands):
         
Three Months Ended       Nine Months Ended
      June 28,2013     June 29,2012       June 28,2013     June 29,2012
Revenues by Major Component:        
Technical professional services $ 1,719,986 $ 1,640,157 $ 5,026,034 $ 4,832,936
Field services     1,361,009       1,132,717         3,649,686       3,274,557
Total     $ 3,080,995       $ 2,772,874         $ 8,675,720       $ 8,107,493
 
Depreciation (pre-tax)     $ 17,737       $ 14,535         $ 49,828       $ 43,023
Amortization of Intangibles (pre-tax)     $ 6,646       $ 10,138         $ 22,327       $ 32,158
Pass-Through Costs Included in Revenues     $ 674,715       $ 583,136         $ 1,794,748       $ 1,699,188
 
Capital Expenditures     $ 27,035       $ 32,554         $ 91,520       $ 70,305
 
       

Selected Balance Sheet and Backlog Information (in thousands):
 
      June 28,2013     June 29,2012
Balance Sheet Information:
Cash and cash equivalents $ 1,295,517 $ 898,588
Working capital 2,066,934 1,734,293
Total debt 444,976 512,445
Total Jacobs stockholders' equity     4,091,606       3,656,686
 
Backlog Information:
Technical professional services $ 11,087,100 $ 10,174,900
Field services     6,108,500       5,426,200
Total     $ 17,195,600       $ 15,601,100

Copyright Business Wire 2010

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