JACOBS ENGINEERING GROUP INC /DE/
FORM 8-K
(Current report filing)
Filed 04/29/14 for the Period Ending 04/28/14
Address
155 NORTH LAKE AVENUE
PASADENA, CA 91101
Telephone
6265783500
CIK
0000052988
Symbol
JEC
SIC Code
1600 - Heavy Construction Other Than Bldg Const - Contractors
Industry
Construction Services
Sector
Capital Goods
Fiscal Year
09/30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 28, 2014 Jacobs Engineering Group Inc.
(Exact name of Registrant as specified in its charter)
Registrant's telephone number (including area code): (626) 578-3500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
Delaware 1-7463 95-4081636
(State of incorporation) (SEC File No.) (IRS Employer identification number)
155 North Lake Avenue, Pasadena, California 91101
Item 2.02 Results of Operations and Financial Condition
On April 28, 2014, Jacobs Engineering Group Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of fiscal 2014 ended March 28, 2014, and certain other financial information. A copy of the press release is attached to this Form 8-K as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
The following exhibit is furnished as part of this Report pursuant to Item 2.02.
The information in this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Furthermore, this Current Report on Form 8-K, including the exhibit, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934.
99.1 Press Release dated April 28, 2014 announcing the Company's financial results for the second quarter of fiscal 2014 ended March 28, 2014, and the Company's earnings guidance for the fiscal year ending September 26, 2014.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 29, 2014
3
JACOBS ENGINEERING GROUP INC.
By: /s/_John W. Prosser, Jr.___
John W. Prosser, Jr.
Executive Vice President
EXHIBIT INDEX
99.1 Press Release dated April 28, 2014
Press Release
For additional information contact: John W. Prosser, Jr.
Executive Vice President, Finance and Administration 626.578.6803
Jacobs Engineering Group Inc. Reports Earnings for the Second Quarter of Fiscal 2014
Backlog at Record Levels
PASADENA, CALIF - Jacobs Engineering Group Inc. (NYSE:JEC) announced today its financial results for the second quarter of fiscal 2014 ended March 28, 2014.
Second Quarter Fiscal 2014 Highlights:
Jacobs reported today net earnings of $83.5 million, or $0.63 per diluted share, on revenues of $3.2 billion for its second quarter of fiscal 2014 ended March 28, 2014. This compares to net earnings of $104.4 million, or $0.80 per diluted share, on revenues of $2.8 billion for the second quarter of fiscal 2013 ended March 29, 2013.
Included in the Company’s results for the quarter ended March 28, 2014 is an aggregate after tax negative impact of $31.8 million or $0.24 per diluted share related to certain project issues in Europe, unusual impacts of holidays and weather events, and SKM related items . The quarter also included an after tax gain of $6.4 million or $0.05 per diluted share related to the sale of VCM technology assets.
Jacobs also announced total backlog of $18.4 billion at March 28, 2014, including a technical professional services component of $12.6 billion. This is up approximately 10% from total backlog and up approximately 15% from technical professional services backlog of $16.8 billion and $10.9 billion, respectively, at March 29, 2013.
Commenting on the results for the second quarter, Jacobs President and CEO Craig Martin stated, “While second quarter results included several unusual items, the underlying fundamentals of the business remain sound as demonstrated by our record backlog. As we look forward, the overall business continues to perform well in a good market, and we see many opportunities. Also, we are pleased with
1
155 North Lake Avenue 91101
PO Box 7084
Pasadena, California 91109-7084
1.626.578.3500 Fax 1.626.578.7144
FOR IMMEDIATE RELEASE
April 28, 2014• Net earnings for the quarter of $83.5 million;
• Diluted EPS for the quarter of $0.63; and
the benefits we are realizing from our recent acquisitions, including recent wins based on combined offerings of Jacobs’ and acquired companies’ capabilities.
“Importantly, there are significant opportunities to accelerate savings from the integration of SKM and to reduce structural costs, especially in Europe. To maximize these cost saving benefits and maintain a competitive cost structure overall, we have started a number of restructuring initiatives that are expected to impact FY14. We expect these actions to result in significant savings in FY15 and thereafter. Overall, the strength of the business, as well as the savings and benefits of our recent acquisitions, positions us for excellent future growth and profitability.”
Commenting on the Company’s earnings outlook for the remainder of fiscal 2014, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, “Excluding the impact of unusual items in the first half and second half restructuring expenses, we are revising our guidance for FY14 to a range of $3.15 to $3.55 per share.”
Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Tuesday, April 29, 2014, 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 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. For a description of some of the 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 period ended September 27, 2013, 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 , as well as the Company’s other filings with the Securities and Exchange
Commission. We also caution the readers of this release that we do not undertake to update any forward-looking statements made herein.
x
Financial Highlights:
Results of Operations (in thousands, except per-share data):
[ MORE ] 3
Three Months Ended Six Months Ended
March 28, 2014 March 29, 2013 March 28, 2014 March 29, 2013
Revenues $ 3,176,033 $ 2,835,084 $ 6,244,924 $ 5,594,725
Costs and Expenses:
Direct costs of contracts (2,659,480 ) (2,370,183 ) (5,274,678 ) (4,694,101 )
Selling, general, and administrative expenses (394,119 ) (299,698 ) (702,764 ) (575,152 )
Operating Profit 122,434 165,203 267,482 325,472
Other Income (Expense):
Interest income 3,004 1,099 4,801 2,189
Interest expense (5,116 ) (3,035 ) (4,925 ) (6,729 )
Gain on sale of intellectual property, net 12,147 — 12,147 —
Miscellaneous expense, net (75 ) (1,359 ) (190 ) (2,713 )
Total other income (expense), net 9,960 (3,295 ) 11,833 (7,253 )
Earnings Before Taxes 132,394 161,908 279,315 318,219
Income Tax Expense (41,594 ) (54,819 ) (89,565 ) (106,607 )
Net Earnings of the Group 90,800 107,089 189,750 211,612
Net Earnings Attributable to
Noncontrolling Interests (7,340 ) (2,688 ) (12,558 ) (8,201 )
Net Earnings Attributable to Jacobs $ 83,460 $ 104,401 $ 177,192 $ 203,411
Earnings Per Share (“EPS”):
Basic $ 0.64 $ 0.81 $ 1.36 $ 1.58
Diluted $ 0.63 $ 0.80 $ 1.34 $ 1.56
Weighted Average Shares Used to Calculate EPS:
Basic 130,384 129,096 130,254 128,876
Other Operational Information (in thousands):
Selected Balance Sheet and Backlog Information (in thousands):
[ END ]
Three Months Ended Six Months Ended
March 28, 2014 March 29, 2013 March 28, 2014 March 29, 2013
Revenues by Major Component:
Technical professional services $ 1,871,087 $ 1,694,129 $ 3,544,498 $ 3,306,048
Field services 1,304,946 1,140,955 2,700,426 2,288,677
Total $ 3,176,033 $ 2,835,084 $ 6,244,924 $ 5,594,725
Depreciation (pre-tax) $ 25,368 $ 16,598 $ 45,017 $ 32,091
Amortization of Intangibles (pre-tax) $ 13,051 $ 6,699 $ 21,688 $ 15,681
Pass-Through Costs Included in Revenues $ 700,558 $ 573,617 $ 1,452,581 $ 1,120,033
Capital Expenditures $ (29,004 ) $ (39,311 ) $ (66,952 ) $ (64,485 )
March 28, 2014 March 29, 2013
Balance Sheet Information:
Cash and cash equivalents $ 691,256 $ 1,166,207
Working capital 1,665,970 1,987,257
Total debt 996,337 450,813
Total Jacobs stockholders' equity 4,419,479 3,955,547
Backlog Information:
Technical professional services $ 12,554,921 $ 10,888,900
Field services 5,857,692 5,901,400
