Jacobs Reports Fiscal Fourth Quarter and Fiscal Year 2022 Earnings
Double-Digit Fourth Quarter Operating Profit and EPS Year-Over-Year Growth
Robust Q4 Cash Flow From Operations Generation With Over 100% Cash Conversion
Robust Backlog and Pipeline Driven by Global Climate Response, Infrastructure, Supply Chain Modernization and National Security
Q4 2022 Financial Highlights:
- Revenue of
$3.9 billion grew 8.2% year-over-year; net revenue1 up 11% in constant currency1 - Net earnings of
$225 million and EPS from continuing operations of$1.75 - Adjusted EPS1 from continuing operations of
$1.80 , up 14% year-over-year and 18% in constant currency - Adjusted EBITDA1 of $350 million, up 13% year-over-year and up 17% in constant currency
- Cash flow from operations of
$278 million and free cash flow1 of$230 million , driven by strong DSO performance - Backlog1 increased
$1.2 billion to$27.9 billion , up 5% year-over-year and 8% in constant currency
Fiscal Year 2022 Highlights:
- Revenue growth of 5.9% and net revenue up 10% year-over-year in constant currency
- Net earnings from continuing operations of
$644 million , up 38%, and FY22 EPS of$4.98 up 60% - Adjusted EPS of
$6.93 , up 10% year-over-year;$7.12 on a constant currency basis up 13% - Adjusted EBITDA year-over-year growth of 10% to
$1.4 billion and up 12% in constant currency - Cash flow from operations of
$475 million and free cash flow of$347 million , includes previously announced Legacy CH2M Matter settlement outflow of$475 million 2 during Q3,$55 million tax repayment and$63 million of other items.
Jacobs' Chair and CEO
Jacobs' President and CFO
Financial Outlook3
Given the volatility of FX rates we are providing our outlook under two FX scenarios 1) an outlook based on constant currency which provides greater insight of underlying business performance, and 2) an outlook based on recent FX rates.
Based on fiscal 2022 average FX rates, the Company's outlook for fiscal 2023 adj. EBITDA is
Based on FX rates in early November, the Company's outlook for fiscal 2023 adj. EBITDA is
On a net revenue basis the difference between these two scenarios is approximately
Our constant currency fiscal 2023 outlook is based off of our estimate of year-over-year FX impact to operating profit. The constant currency impact excludes the impact of year-over-year FX translation on other income from items such as pension costs, unrealized exchange gains and losses and income taxes.
1See Non-GAAP Financial Measures and Operating Metrics, and GAAP Reconciliations, beginning on page 13, for additional detail.
2On
3Reconciliation of fiscal 2023 adjusted EBITDA and adjusted EPS, based on either FX rate scenario, 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 2023.
Fourth Quarter Review |
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Fiscal Q4 2022 |
Fiscal Q4 2021 |
Change |
Revenue |
|
|
|
Net Revenue |
|
|
|
GAAP Net Earnings from Continuing Operations |
|
|
|
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations |
|
|
|
Adjusted Net Earnings from Continuing Operations |
|
|
|
Adjusted EPS from Continuing Operations |
|
|
|
The Company's adjusted net earnings from continuing operations and adjusted EPS from continuing operations for the fourth quarter of fiscal 2022 and fiscal 2021 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 2022 |
Fiscal Q4 2021 |
GAAP Net Earnings from Continuing Operations and Diluted Earnings Per Share (EPS) |
|
|
Adjustments for Restructuring, transaction costs and other (recoveries) charges on an after-tax basis |
|
|
Other adjustments include:
(a) add-back of amortization of intangible assets of
(b) the removal of
(c) the exclusion of impacts on the Company's effective tax rates associated with revised estimates on
(d) the removal of (e) applicable redeemable noncontrolling interests impacts for the above adjustment items and (f) income tax expense adjustments for the above pre-tax adjustment items. |
|
|
Adjusted Net Earnings from Continuing Operations and Adjusted EPS from Continuing Operations |
$231 million
( |
$207 million
( |
(note: earnings per share amounts may not add due to rounding) |
The Company's
Fiscal 2022 Review |
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|
Fiscal 2022 |
Fiscal 2021 |
Change |
Revenue |
|
|
|
Net Revenue |
|
|
|
GAAP Net Earnings from Continuing Operations |
|
|
|
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations |
|
|
|
Adjusted Net Earnings from Continuing Operations |
|
|
|
Adjusted EPS from Continuing Operations |
|
|
|
The Company's adjusted net earnings and adjusted EPS for fiscal 2022 and fiscal 2021 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 2022 |
Fiscal 2021 |
GAAP Net Earnings from Continuing Operations and Diluted Earnings Per Share (EPS) |
|
|
Adjustments for after-tax Restructuring, transaction costs and other charges ( |
|
|
Other adjustments include:
(a) add-back of amortization of intangible assets of
(b) the removal of
(c) the removal of the fair value gains and (losses) for the Company's investment in C3.ai, Inc. ("C3") of
(d) the removal of (e) applicable noncontrolling interests impacts for the above adjustment items and (f) associated income tax expense adjustments for the above pre-tax adjustment items. |
|
|
Adjusted Net Earnings from Continuing Operations and Adjusted EPS from Continuing Operations |
|
|
(note: earnings per share amounts may not add due to rounding) |
The Company's
Jacobs is hosting a conference call at
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
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding our expectations as to our future growth, prospects, financial outlook and business strategy for future fiscal years, including our expectations for our fiscal 2023 adjusted EBITDA and adjusted EPS, under different FX rate scenarios, as well as our expectations for the foreign currency translation impact on net revenue. You should not place undue reliance on these forward-looking statements. Although such statements are based on management's current estimates and expectations, and/or 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 our ability to execute on our three-year corporate strategy, including our ability to invest in the tools needed to implement our strategy, competition from existing and future competitors in our target markets, our ability to achieve the cost-savings and synergies contemplated by our recent acquisitions within the expected time frames or to achieve them fully and to successfully integrate acquired businesses while retaining key personnel, the impact of the COVID-19 pandemic, and any resulting economic downturn on our results, prospects and opportunities, measures or restrictions imposed by governments and health officials in response to the pandemic, the timing of the award of projects and funding under the
Financial Highlights: Results of Operations (in thousands, except per-share data) (Quarterly data unaudited):
|
|||||||
|
For the Three Months Ended |
|
For the Years Ended |
||||
|
|
|
|
|
|
|
|
Revenues |
$ 3,881,048 |
|
$ 3,586,487 |
|
|
|
|
Direct cost of contracts |
(3,045,367) |
|
(2,758,723) |
|
(11,595,785) |
|
(11,048,860) |
Gross profit |
835,681 |
|
827,764 |
|
3,327,040 |
|
3,043,772 |
Selling, general and administrative expenses |
(527,141) |
|
(576,248) |
|
(2,409,190) |
|
(2,355,683) |
Operating Profit |
308,540 |
|
251,516 |
|
917,850 |
|
688,089 |
Other (Expense) Income: |
|
|
|
|
|
|
|
Interest income |
1,565 |
|
770 |
|
4,489 |
|
3,503 |
Interest expense |
(32,695) |
|
(19,926) |
|
(100,246) |
|
(72,714) |
Miscellaneous income (expense), net |
2,452 |
|
(61,981) |
|
54,254 |
|
76,724 |
Total other (expense) income, net |
(28,678) |
|
(81,137) |
|
(41,503) |
|
7,513 |
Earnings From Continuing Operations Before Taxes |
279,862 |
|
170,379 |
|
876,347 |
|
695,602 |
Income Tax Expense from Continuing Operations |
(39,358) |
|
(99,344) |
|
(160,903) |
|
(274,781) |
Net Earnings of the Group from Continuing Operations |
240,504 |
|
71,035 |
|
715,444 |
|
420,821 |
Net Earnings (Loss) of the Group from Discontinued Operations |
544 |
|
(1,682) |
|
(32) |
|
10,008 |
Net Earnings of the Group |
241,048 |
|
69,353 |
|
715,412 |
|
430,829 |
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations |
(8,502) |
|
(9,847) |
|
(36,788) |
|
(39,213) |
Net (Earnings) Loss Attributable to Redeemable Noncontrolling interests |
(7,339) |
|
(16,362) |
|
(34,585) |
|
85,414 |
Net Earnings Attributable to Jacobs from Continuing Operations |
224,663 |
|
44,826 |
|
644,071 |
|
467,022 |
Net Earnings Attributable to Jacobs |
$ 225,207 |
|
$ 43,144 |
|
$ 644,039 |
|
$ 477,030 |
Net Earnings Per Share: |
|
|
|
|
|
|
|
Basic Net Earnings from Continuing Operations Per Share |
$ 1.76 |
|
$ 0.34 |
|
$ 5.01 |
|
$ 3.15 |
Basic Net (Loss) Earnings from Discontinued Operations Per Share |
$ — |
|
$ (0.01) |
|
$ — |
|
$ 0.08 |
Basic Earnings Per Share |
$ 1.76 |
|
$ 0.33 |
|
$ 5.01 |
|
$ 3.22 |
Diluted Net Earnings from Continuing Operations Per Share |
$ 1.75 |
|
$ 0.34 |
|
$ 4.98 |
|
$ 3.12 |
Diluted Net (Loss) Earnings from Discontinued Operations Per Share |
$ — |
|
$ (0.01) |
|
$ — |
|
$ 0.08 |
Diluted Earnings Per Share |
$ 1.75 |
|
$ 0.33 |
|
$ 4.98 |
|
$ 3.20 |
Segment Information (in thousands) (Quarterly data and Non-GAAP unaudited):
|
|||||||
|
For the Three Months Ended |
|
For the Years Ended |
||||
|
|
|
|
|
|
|
|
Revenues from External Customers: |
|
|
|
|
|
|
|
Critical Mission Solutions |
$ 1,387,702 |
|
$ 1,264,102 |
|
$ 5,233,629 |
|
$ 5,087,052 |
People & Places Solutions |
2,238,994 |
|
2,049,091 |
|
8,569,900 |
|
8,378,179 |
Pass Through Revenue |
(647,265) |
|
(544,435) |
|
(2,318,732) |
|
(2,381,785) |
People & Places Solutions Net Revenue |
$ 1,591,729 |
|
$ 1,504,656 |
|
$ 6,251,168 |
|
$ 5,996,394 |
|
$ 254,352 |
|
$ 273,294 |
|
$ 1,119,296 |
|
$ 627,401 |
Total Revenue |
$ 3,881,048 |
|
$ 3,586,487 |
|
$ 14,922,825 |
|
$ 14,092,632 |
Net Revenue |
$ 3,233,783 |
|
$ 3,042,052 |
|
$ 12,604,093 |
|
$ 11,710,847 |
|
For the Three Months Ended |
|
For the Years Ended |
||||
|
|
|
|
|
|
|
|
Segment Operating Profit: |
|
|
|
|
|
|
|
Critical Mission Solutions |
$ 95,343 |
|
$ 115,028 |
|
$ 424,385 |
|
$ 447,161 |
People & Places Solutions (1) |
230,681 |
|
176,726 |
|
823,564 |
|
780,380 |
|
49,375 |
|
66,363 |
|
232,225 |
|
151,071 |
Total Segment Operating Profit |
375,399 |
|
358,117 |
|
1,480,174 |
|
1,378,612 |
Other Corporate Expenses (2) |
(79,961) |
|
(101,932) |
|
(364,440) |
|
(340,129) |
Restructuring, Other and Recoveries (Charges) (3) |
13,102 |
|
(4,669) |
|
(197,884) |
|
(350,394) |
Total |
308,540 |
|
251,516 |
|
917,850 |
|
688,089 |
Total Other (Expense) Income, Net (4) |
(28,678) |
|
(81,137) |
|
(41,503) |
|
7,513 |
Earnings from Continuing Operations Before Taxes |
$ 279,862 |
|
$ 170,379 |
|
$ 876,347 |
|
$ 695,602 |
(1) |
Includes |
(2) |
Other corporate expenses includes intangibles amortization of |
(3) |
Included in the year ended |
(4) |
The year ended |
Balance Sheet (in thousands): |
|||
|
|
|
|
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ 1,140,479 |
|
$ 1,014,249 |
Receivables and contract assets |
3,405,381 |
|
3,101,418 |
Prepaid expenses and other |
176,134 |
|
176,228 |
Total current assets |
4,721,994 |
|
4,291,895 |
Property, Equipment and Improvements, net |
346,676 |
|
353,117 |
Other Noncurrent Assets: |
|
|
|
|
7,184,658 |
|
7,197,000 |
Intangibles, net |
1,394,052 |
|
1,565,758 |
Deferred income tax assets |
31,480 |
|
103,193 |
Operating lease right-of-use assets |
476,913 |
|
650,097 |
Miscellaneous |
504,646 |
|
471,549 |
Total other noncurrent assets |
9,591,749 |
|
9,987,597 |
|
$ 14,660,419 |
|
$ 14,632,609 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Current maturities of long-term debt |
$ 50,415 |
|
$ 53,456 |
Accounts payable |
966,792 |
|
908,441 |
Accrued liabilities |
1,441,762 |
|
1,533,559 |
Operating lease liability |
150,171 |
|
172,414 |
Contract liabilities |
641,705 |
|
542,054 |
Total current liabilities |
3,250,845 |
|
3,209,924 |
Long-term debt |
3,357,256 |
|
2,839,933 |
Liabilities relating to defined benefit pension and retirement plans |
271,332 |
|
418,080 |
Deferred income tax liabilities |
269,077 |
|
214,380 |
Long-term operating lease liability |
607,447 |
|
758,358 |
Other deferred liabilities |
167,548 |
|
559,375 |
Commitments and Contingencies |
|
|
|
Redeemable Noncontrolling Interests |
632,522 |
|
657,722 |
Stockholders' Equity: |
|
|
|
Capital stock: |
|
|
|
Preferred stock, |
— |
|
— |
Common stock, |
127,393 |
|
128,893 |
Additional paid-in capital |
2,682,009 |
|
2,590,012 |
Retained earnings |
4,225,784 |
|
4,015,578 |
Accumulated other comprehensive loss |
(975,130) |
|
(794,442) |
Total Jacobs stockholders' equity |
6,060,056 |
|
5,940,041 |
Noncontrolling interests |
44,336 |
|
34,796 |
|
6,104,392 |
|
5,974,837 |
|
$ 14,660,419 |
|
$ 14,632,609 |
Cash Flows (in thousands) (Quarterly data unaudited)
|
|||||||
|
For the Three Months Ended |
|
For the Years Ended |
||||
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
Net earnings attributable to the Group |
$ 241,048 |
|
$ 69,353 |
|
$ 715,412 |
|
$ 430,829 |
Adjustments to reconcile net earnings to net cash flows provided by operations: |
|
|
|
|
|
|
|
Depreciation and amortization: |
|
|
|
|
|
|
|
Property, equipment and improvements |
24,533 |
|
26,540 |
|
102,454 |
|
101,024 |
Intangible assets |
51,713 |
|
46,468 |
|
198,602 |
|
149,776 |
Gain on sale of ECR business |
— |
|
— |
|
— |
|
(15,608) |
Loss (Gain) on investment in equity securities |
— |
|
80,820 |
|
(13,862) |
|
(71,325) |
Stock based compensation |
11,678 |
|
14,702 |
|
53,383 |
|
56,221 |
Equity in earnings of operating ventures, net of return on capital distributions |
4,069 |
|
7,680 |
|
18,291 |
|
10,941 |
(Gain) loss on disposals of assets, net |
82 |
|
254 |
|
(4,680) |
|
1,003 |
Impairment of equity method investment and other long term assets |
3,707 |
|
502 |
|
78,292 |
|
40,640 |
Loss on pension and retiree medical plan changes |
123 |
|
2,783 |
|
123 |
|
2,783 |
Deferred income taxes |
49,702 |
|
75,204 |
|
111,846 |
|
113,623 |
Changes in assets and liabilities, excluding the effects of businesses acquired: |
|
|
|
|
|
|
|
Receivables and contract assets, net of contract liabilities |
(153,340) |
|
10,162 |
|
(267,947) |
|
242,154 |
Prepaid expenses and other current assets |
(28,957) |
|
(40,402) |
|
6 |
|
6,800 |
Miscellaneous other assets |
(5,388) |
|
8,186 |
|
113,850 |
|
116,097 |
Accounts payable |
32,980 |
|
(14,766) |
|
87,402 |
|
(165,502) |
Income taxes payable |
4,428 |
|
(40,100) |
|
(70,258) |
|
20,961 |
Accrued liabilities |
41,146 |
|
(32,472) |
|
(552,036) |
|
(252,305) |
Other deferred liabilities |
862 |
|
(18,930) |
|
(73,697) |
|
(63,915) |
Other, net |
(846) |
|
6,720 |
|
(22,472) |
|
2,079 |
Net cash provided by operating activities |
277,540 |
|
202,704 |
|
474,709 |
|
726,276 |
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
Additions to property and equipment |
(47,562) |
|
(27,144) |
|
(127,615) |
|
(92,814) |
Disposals of property and equipment and other assets |
106 |
|
6 |
|
9,392 |
|
474 |
Capital contributions to equity investees, net of return of capital distributions |
269 |
|
(823) |
|
3,025 |
|
(5,016) |
Acquisitions of businesses, net of cash acquired |
— |
|
— |
|
(437,083) |
|
(1,741,062) |
Disposals of investment in equity securities |
— |
|
369,294 |
|
13,862 |
|
421,315 |
Payments related to sales of businesses |
— |
|
— |
|
— |
|
36,360 |
Net cash (used for) provided by investing activities |
(47,187) |
|
341,333 |
|
(538,419) |
|
(1,380,743) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
Net (repayments of) proceeds from borrowings |
(80,176) |
|
(203,414) |
|
718,975 |
|
1,220,440 |
Debt issuance costs |
— |
|
— |
|
— |
|
(2,747) |
Proceeds from issuances of common stock |
10,047 |
|
8,362 |
|
51,034 |
|
38,077 |
Common stock repurchases |
(31,217) |
|
(249,999) |
|
(281,926) |
|
(274,948) |
Taxes paid on vested restricted stock |
(13) |
|
(71) |
|
(28,587) |
|
(25,867) |
Cash dividends to shareholders |
(29,360) |
|
(27,387) |
|
(115,948) |
|
(107,188) |
Net dividends associated with noncontrolling interests |
(10,879) |
|
(8,701) |
|
(26,982) |
|
(48,784) |
Repurchase of redeemable noncontrolling interests |
— |
|
— |
|
(46,074) |
|
— |
Proceeds from issuances of redeemable noncontrolling interests |
4 |
|
— |
|
49,742 |
|
— |
Net cash (used for) provided by financing activities |
(141,594) |
|
(481,210) |
|
320,234 |
|
798,983 |
Effect of Exchange Rate Changes |
(48,973) |
|
(14,983) |
|
(128,892) |
|
19,635 |
Net Increase in Cash and Cash Equivalents and Restricted Cash |
39,786 |
|
47,844 |
|
127,632 |
|
164,151 |
Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period |
1,114,421 |
|
978,731 |
|
1,026,575 |
|
862,424 |
Cash and Cash Equivalents, including Restricted Cash, at the End of the Period |
$ 1,154,207 |
|
$ 1,026,575 |
|
$ 1,154,207 |
|
$ 1,026,575 |
See the accompanying Notes to Consolidated Financial Statements. |
Backlog (in millions):
|
|||
Unaudited |
|
|
|
Critical Mission Solutions |
$ 10,561 |
|
$ 10,589 |
People & Places Solutions |
17,032 |
|
15,738 |
|
269 |
|
304 |
Total |
$ 27,862 |
|
$ 26,631 |
Non-GAAP Financial Measures and Operating Metrics:
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, adjusted EBITDA outlook, adjusted EPS outlook, expected foreign currency translation to impact on fiscal year 2023 revenue, adjusted EBITDA and adjusted EPS, free cash flow, and adjusted effective tax rate.
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 recoveries, costs and other charges associated with restructuring activities implemented in connection with the acquisitions of
Free cash flow is calculated using the reported statement of cash flows, provided from operations less additions to property and equipment.
Adjusted EBITDA is calculated by adding income tax expense, depreciation expense and adjusted interest expense, and deducting interest income from adjusted net earnings from continuing operations.
Adjusted interest expense excludes one-time fees related on our debt facilities that are included in our interest expense under GAAP.
Cash conversion is the ratio of cash flow from operations to GAAP net earnings from continuing operations.
Certain percentage changes are quantified on a constant currency basis, which provides information assuming that foreign currency exchange rates have not changed between the prior and current periods. For purposes of constant currency calculations, we use the prior period average exchange rates as applied to the current period adjusted amounts. The constant currency impact on the fourth quarter and fiscal year 2022 adjusted EPS from continuing operations is calculated by applying the FX rates from the prior period to operating profit and utilizing our adjusted income tax rate and fully diluted share count. The constant currency impact on the fourth quarter and fiscal year 2022 adjusted EBITDA results is calculated by applying the FX rates from the prior period to operating profit.
We believe that the measures listed above 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.
This press release also contains certain operating metrics which management believes are useful in evaluating the Company's performance. We regularly monitor these operating metrics to evaluate our business, identify trends affecting our business, and make strategic decisions. Revenue Backlog is the total dollar amount of revenues we expect to record in the future as a result of performing work under contracts that have been awarded to us.
The Company provides non-GAAP measures to supplement
The following tables reconcile the components and values of
|
|||||||
|
Three Months Ended |
||||||
|
|
||||||
Unaudited |
|
|
Effects of Restructuring, Transaction and Other Charges |
|
Other Adjustments (2) |
|
Adjusted |
Revenues |
|
|
$ — |
|
$ — |
|
|
Pass through revenue |
— |
|
— |
|
(647,265) |
|
(647,265) |
Net revenue |
3,881,048 |
|
— |
|
(647,265) |
|
3,233,783 |
Direct cost of contracts |
(3,045,367) |
|
1,630 |
|
647,265 |
|
(2,396,472) |
Gross profit |
835,681 |
|
1,630 |
|
— |
|
837,311 |
Selling, general and administrative expenses |
(527,141) |
|
(14,732) |
|
51,713 |
|
(490,160) |
Operating Profit |
308,540 |
|
(13,102) |
|
51,713 |
|
347,151 |
Total other expense, net |
(28,678) |
|
(1,810) |
|
— |
|
(30,488) |
Earnings from Continuing Operations Before Taxes |
279,862 |
|
(14,912) |
|
51,713 |
|
316,663 |
Income Tax (Expense) Benefit for Continuing Operations |
(39,358) |
|
(26,347) |
|
2,251 |
|
(63,454) |
Net Earnings of the Group from Continuing Operations |
240,504 |
|
(41,259) |
|
53,964 |
|
253,209 |
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations |
(8,502) |
|
— |
|
— |
|
(8,502) |
Net (Earnings) Loss Attributable to Redeemable Noncontrolling interests |
(7,339) |
|
(1,087) |
|
(5,221) |
|
(13,647) |
Net Earnings attributable to Jacobs from Continuing Operations |
224,663 |
|
(42,346) |
|
48,743 |
|
231,060 |
Net Earnings attributable to Discontinued Operations |
544 |
|
— |
|
— |
|
544 |
Net Earnings attributable to Jacobs |
$ 225,207 |
|
$ (42,346) |
|
$ 48,743 |
|
$ 231,604 |
Diluted Net Earnings from Continuing Operations Per Share |
$ 1.75 |
|
$ (0.33) |
|
$ 0.38 |
|
$ 1.80 |
Diluted Net (Loss) Earnings from Discontinued Operations Per Share |
$ — |
|
$ — |
|
$ — |
|
$ — |
Diluted Earnings Per Share |
$ 1.75 |
|
$ (0.33) |
|
$ 0.38 |
|
$ 1.80 |
Operating Profit Margin |
7.9 % |
|
|
|
|
|
10.7 % |
(1) |
Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation and acquisition related programs. |
(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 |
|
Three Months Ended |
||||||
|
|
||||||
Unaudited |
|
|
Effects of Restructuring, Transaction and Other Charges |
|
Other Adjustments (2) |
|
Adjusted |
Revenues |
|
|
$ — |
|
$ — |
|
|
Pass through revenue |
— |
|
— |
|
(544,435) |
|
(544,435) |
Net revenue |
3,586,487 |
|
— |
|
(544,435) |
|
3,042,052 |
Direct cost of contracts |
(2,758,723) |
|
(274) |
|
544,435 |
|
(2,214,562) |
Gross profit |
827,764 |
|
(274) |
|
— |
|
827,490 |
Selling, general and administrative expenses |
(576,248) |
|
4,943 |
|
46,467 |
|
(524,838) |
Operating Profit |
251,516 |
|
4,669 |
|
46,467 |
|
302,652 |
Total other (expense) income, net |
(81,137) |
|
(323) |
|
67,515 |
|
(13,945) |
Earnings from Continuing Operations Before Taxes |
170,379 |
|
4,346 |
|
113,982 |
|
288,707 |
Income Tax Expense for Continuing Operations |
(99,344) |
|
36,127 |
|
5,958 |
|
(57,259) |
Net Earnings of the Group from Continuing Operations |
71,035 |
|
40,473 |
|
119,940 |
|
231,448 |
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations |
(9,847) |
|
— |
|
— |
|
(9,847) |
Net (Earnings) Loss Attributable to Redeemable Noncontrolling Interests |
(16,362) |
|
8,234 |
|
(6,326) |
|
(14,454) |
Net Earnings from Continuing Operations attributable to Jacobs |
44,826 |
|
48,707 |
|
113,614 |
|
207,147 |
Net Loss attributable to Discontinued Operations |
(1,682) |
|
— |
|
— |
|
(1,682) |
Net Earnings attributable to Jacobs |
$ 43,144 |
|
$ 48,707 |
|
$ 113,614 |
|
$ 205,465 |
Diluted Net Earnings from Continuing Operations Per Share |
$ 0.34 |
|
$ 0.37 |
|
$ 0.86 |
|
$ 1.58 |
Diluted Net Earnings from Discontinued Operations Per Share |
$ (0.01) |
|
$ — |
|
$ — |
|
$ (0.01) |
Diluted Earnings Per Share |
$ 0.33 |
|
$ 0.37 |
|
$ 0.86 |
|
$ 1.56 |
Operating Profit Margin |
7.0 % |
|
|
|
|
|
9.9 % |
(1) |
Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation and acquisition related programs. |
(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 |
|
|||||||
|
For the Year Ended |
||||||
|
|
||||||
Unaudited |
|
|
Effects of Restructuring, Transaction and Other Charges |
|
Other Adjustments (2) |
|
Adjusted |
Revenues |
|
|
$ — |
|
$ — |
|
|
Pass through revenue |
— |
|
— |
|
(2,318,732) |
|
(2,318,732) |
Net revenue |
14,922,825 |
|
— |
|
(2,318,732) |
|
12,604,093 |
Direct cost of contracts |
(11,595,785) |
|
1,633 |
|
2,318,732 |
|
(9,275,420) |
Gross profit |
3,327,040 |
|
1,633 |
|
— |
|
3,328,673 |
Selling, general and administrative expenses |
(2,409,190) |
|
196,251 |
|
198,602 |
|
(2,014,337) |
Operating Profit |
917,850 |
|
197,884 |
|
198,602 |
|
1,314,336 |
Total other (expense) income, net |
(41,503) |
|
(12,492) |
|
5 |
|
(53,990) |
Earnings from Continuing Operations Before Taxes |
876,347 |
|
185,392 |
|
198,607 |
|
1,260,346 |
Income Tax Expense for Continuing Operations |
(160,903) |
|
(65,888) |
|
(41,442) |
|
(268,233) |
Net Earnings of the Group from Continuing Operations |
715,444 |
|
119,504 |
|
157,165 |
|
992,113 |
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations |
(36,788) |
|
— |
|
— |
|
(36,788) |
Net Earnings Attributable to Redeemable Noncontrolling interests |
(34,585) |
|
(1,511) |
|
(22,065) |
|
(58,161) |
Net Earnings attributable to Jacobs from Continuing Operations |
644,071 |
|
117,993 |
|
135,100 |
|
897,164 |
Net Loss attributable to Discontinued Operations |
(32) |
|
— |
|
— |
|
(32) |
Net Earnings attributable to Jacobs |
$ 644,039 |
|
$ 117,993 |
|
$ 135,100 |
|
$ 897,132 |
Diluted Net Earnings from Continuing Operations Per Share |
$ 4.98 |
|
$ 0.91 |
|
$ 1.04 |
|
$ 6.93 |
Diluted Net Earnings from Discontinued Operations Per Share |
$ — |
|
$ — |
|
$ — |
|
$ — |
Diluted Earnings Per Share |
$ 4.98 |
|
$ 0.91 |
|
$ 1.04 |
|
$ 6.93 |
Operating Profit Margin |
6.2 % |
|
|
|
|
|
10.4 % |
(1) |
Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation initiatives and acquisition related programs, including |
(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 |
|
For the Year Ended |
||||||
|
|
||||||
Unaudited |
|
|
Effects of Restructuring, Transaction and Other Charges |
|
Other Adjustments (2) |
|
Adjusted |
Revenues |
|
|
$ — |
|
$ — |
|
$ 14,092,632 |
Pass through revenue |
— |
|
— |
|
(2,381,785) |
|
(2,381,785) |
Net revenue |
14,092,632 |
|
— |
|
(2,381,785) |
|
11,710,847 |
Direct cost of contracts |
(11,048,860) |
|
9 |
|
2,381,785 |
|
(8,667,066) |
Gross profit |
3,043,772 |
|
9 |
|
— |
|
3,043,781 |
Selling, general and administrative expenses |
(2,355,683) |
|
350,385 |
|
149,749 |
|
(1,855,549) |
Operating Profit |
688,089 |
|
350,394 |
|
149,749 |
|
1,188,232 |
Total other expense, net |
7,513 |
|
42,549 |
|
(84,477) |
|
(34,415) |
Earnings from Continuing Operations Before Taxes |
695,602 |
|
392,943 |
|
65,272 |
|
1,153,817 |
Income Tax Expense for Continuing Operations |
(274,781) |
|
6,729 |
|
16,144 |
|
(251,908) |
Net Earnings of the Group from Continuing Operations |
420,821 |
|
399,672 |
|
81,416 |
|
901,909 |
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations |
(39,213) |
|
— |
|
— |
|
(39,213) |
Net Loss (Earnings) Attributable to Redeemable Noncontrolling Interests |
85,414 |
|
(95,246) |
|
(27,307) |
|
(37,139) |
Net Earnings attributable to Jacobs from Continuing Operations |
467,022 |
|
304,426 |
|
54,109 |
|
825,557 |
Net Earnings attributable to Discontinued Operations |
10,008 |
|
|
|
— |
|
10,008 |
Net Earnings attributable to Jacobs |
$ 477,030 |
|
$ 304,426 |
|
$ 54,109 |
|
$ 835,565 |
Preferred Redeemable Noncontrolling interests redemption value adjustment |
(57,307) |
|
57,307 |
|
$ — |
|
— |
Net earnings from continuing operations allocated to common stock for EPS calculation |
$ 409,715 |
|
$ 361,733 |
|
$ 54,109 |
|
$ 825,557 |
Diluted Net Earnings from Continuing Operations Per Share |
$ 3.12 |
|
$ 2.76 |
|
$ 0.41 |
|
$ 6.29 |
Diluted Net Earnings from Discontinued Operations Per Share |
$ 0.08 |
|
$ — |
|
$ — |
|
$ 0.08 |
Diluted Earnings Per Share |
$ 3.20 |
|
$ 2.76 |
|
$ 0.41 |
|
$ 6.37 |
Operating Profit Margin |
4.9 % |
|
|
|
|
|
10.1 % |
(1) |
Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation initiatives and acquisition related programs, impairment charges relating to our investment in AWE ML, along with pre-tax |
(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 |
Reconciliation of Adjusted EBITDA (in thousands): |
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
|
|
|
|
|
|
|
|
$ 231,060 |
|
$ 207,147 |
|
$ 897,164 |
|
$ 825,557 |
Adj. Income Tax Expense for Continuing Operations |
(63,454) |
|
(57,259) |
|
(268,233) |
|
(251,908) |
Adj. Net earnings from Continuing Operations attributable to Jacobs before income taxes |
294,514 |
|
264,406 |
|
1,165,397 |
|
1,077,465 |
Depreciation expense |
24,533 |
|
26,540 |
|
102,454 |
|
101,024 |
Interest income |
(1,565) |
|
(770) |
|
(4,489) |
|
(3,503) |
Adj. Interest expense (1) |
32,695 |
|
19,926 |
|
100,246 |
|
68,714 |
Adjusted EBITDA |
$ 350,177 |
|
$ 310,102 |
|
|
|
|
(1) Year ended |
Reconciliation of Free Cash Flow (in thousands):
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ 277,540 |
|
$ 202,704 |
|
$ 474,709 |
|
$ 726,276 |
Additions to property and equipment |
(47,562) |
|
(27,144) |
|
(127,615) |
|
(92,814) |
Free cash flow |
$ 229,978 |
|
$ 175,560 |
|
$ 347,094 |
|
$ 633,462 |
Reconciliation from GAAP to non-GAAP constant currency Net Revenue
|
|||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
(in thousands) |
|
|
|
|
% Change |
|
|
|
|
|
% Change |
Total Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
Net Revenue |
|
|
|
|
6.3 % |
|
|
|
|
|
7.6 % |
Exchange rate effect |
143,931 |
|
|
|
|
|
292,727 |
|
|
|
|
Constant currency Net Revenue |
|
|
|
|
11.0 % |
|
|
|
|
|
10.1 % |
Reconciliation from non-GAAP Adjusted EPS from Continuing Operations to non-GAAP constant currency Adjusted EPS from Continuing Operations
|
|||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
Total Adjusted EPS from Continuing Operations (1) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from Continuing Operations |
$ 1.80 |
|
$ 1.58 |
|
13.9 % |
|
$ 6.93 |
|
$ 6.29 |
|
10.2 % |
Exchange rate effect |
0.07 |
|
|
|
|
|
0.19 |
|
|
|
|
Constant currency Adjusted EPS from Continuing Operations |
$ 1.87 |
|
|
|
18.4 % |
|
$ 7.12 |
|
|
|
13.2 % |
Reconciliation from GAAP to non-GAAP constant currency Adjusted EBITDA
|
|||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
(in thousands) |
|
|
|
|
% Change |
|
|
|
|
|
% Change |
Total Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ 350,177 |
|
$ 310,102 |
|
12.9 % |
|
|
|
|
|
9.6 % |
Exchange rate effect |
11,627 |
|
|
|
|
|
30,357 |
|
|
|
|
Constant currency Adjusted EBITDA |
$ 361,804 |
|
|
|
16.7 % |
|
|
|
|
|
12.1 % |
Reconciliation from GAAP to non-GAAP constant currency Backlog
|
|||||
(in thousands) |
|
|
|
|
% Change |
Total Backlog |
|
|
|
|
|
Backlog |
|
|
|
|
4.6 % |
Exchange rate effect |
|
|
(720,006) |
|
|
Constant currency Backlog |
|
|
|
|
7.5 % |
Earnings Per Share (in thousands):
|
|||||||
|
For the Three Months Ended |
|
For the Years Ended |
||||
|
|
|
|
|
|
|
|
Numerator for Basic and Diluted EPS: |
|
|
|
|
|
|
|
Net earnings attributable to Jacobs from continuing operations |
$ 224,663 |
|
$ 44,826 |
|
$ 644,071 |
|
$ 467,022 |
Preferred Redeemable Noncontrolling interests redemption value adjustment |
— |
|
— |
|
— |
|
(57,307) |
Net earnings from continuing operations allocated to common stock for EPS calculation |
$ 224,663 |
|
$ 44,826 |
|
$ 644,071 |
|
$ 409,715 |
|
|
|
|
|
|
|
|
Net earnings (loss) from discontinued operations allocated to common stock for EPS calculation |
$ 544 |
|
$ (1,682) |
|
$ (32) |
|
$ 10,008 |
|
|
|
|
|
|
|
|
Net earnings allocated to common stock for EPS calculation |
$ 225,207 |
|
$ 43,144 |
|
$ 644,039 |
|
$ 419,723 |
|
|
|
|
|
|
|
|
Denominator for Basic and Diluted EPS: |
|
|
|
|
|
|
|
Weighted average basic shares |
127,759 |
|
130,162 |
|
128,665 |
|
130,194 |
Shares allocated to participating securities |
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
Shares used for calculating basic EPS attributable to common stock |
127,759 |
|
130,162 |
|
128,665 |
|
130,194 |
|
|
|
|
|
|
|
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
Stock compensation plans |
818 |
|
1,200 |
|
780 |
|
1,080 |
Shares used for calculating diluted EPS attributable to common stock |
128,577 |
|
131,362 |
|
129,445 |
|
131,274 |
|
|
|
|
|
|
|
|
Net Earnings Per Share: |
|
|
|
|
|
|
|
Basic Net Earnings from Continuing Operations Per Share |
$ 1.76 |
|
$ 0.34 |
|
$ 5.01 |
|
$ 3.15 |
Basic Net Earnings from Discontinued Operations Per Share |
$ — |
|
$ (0.01) |
|
$ — |
|
$ 0.08 |
Basic Earnings Per Share: |
$ 1.76 |
|
$ 0.33 |
|
$ 5.01 |
|
$ 3.22 |
Diluted Net Earnings from Continuing Operations Per Share |
$ 1.75 |
|
$ 0.34 |
|
$ 4.98 |
|
$ 3.12 |
Diluted Net Earnings from Discontinued Operations Per Share |
$ — |
|
$ (0.01) |
|
$ — |
|
$ 0.08 |
Diluted Earnings Per Share: |
$ 1.75 |
|
$ 0.33 |
|
$ 4.98 |
|
$ 3.20 |
For additional information contact:
Investors:
jonathan.doros@jacobs.com
Media:
louise.white@jacobs.com
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SOURCE Jacobs