Jacobs Engineering Group Inc.
NYSE : JEC

Jacobs Engineering Group Inc.

July 25, 2005 21:11 ET

Jacobs Engineering Group Inc. Financial Results for the Third Quarter of Fiscal 2005

PASADENA, Calif.--(CCNMatthews - Jul 25, 2005) -

Jacobs Engineering Group Inc. (NYSE:JEC):

Third Quarter Highlights:

-- Backlog increases 19.7% from June 30, 2004, to $8.4 billion

-- Revenues increase 29.4% from the third quarter of fiscal 2004 to $1.4 billion

-- $0.68 EPS

-- Fiscal 2005 EPS guidance is $2.52 to $2.58

Jacobs announced today net earnings of $40.1 million, or $0.68 per diluted share, on revenues of $1.4 billion for the third quarter of fiscal 2005 ended June 30, 2005. This compares to net earnings of $29.9 million, or $0.52 per diluted share, on revenues of $1.1 billion for the third quarter of fiscal 2004.

Commenting on the results for the third quarter, Jacobs Chairman and CEO Noel G. Watson stated, "The third quarter of fiscal 2005 was a very good quarter for the Company. Revenues and earnings were up significantly from last year, driven by strength across a number of the markets in which our clients operate."

For the nine months ended June 30, 2005, Jacobs reported net earnings of $108.2 million, or $1.85 per diluted share, on revenues of $4.1 billion. This compares to net earnings of $98.5 million, or $1.72 per diluted share, on revenues of $3.4 billion for the same period in fiscal 2004.

Jacobs also announced backlog at June 30, 2005, totaling $8.4 billion, including a technical professional services component of $4.2 billion. This compares to total backlog and technical professional services backlog of $7.0 billion and $3.6 billion, respectively, at June 30, 2004.

Commenting on the Company's earnings outlook for the fourth quarter of fiscal 2005, Jacobs Chief Financial Officer John W. Prosser, Jr. stated, "We are narrowing our earnings per share guidance for fiscal 2005 to a range of $2.52 to $2.58."

Jacobs is hosting a conference call at 11:00 a.m. Eastern time on Tuesday, July 26, 2005, which they are webcasting live at www.jacobs.com. The taped teleconference is accessible from any touch-tone phone and will be available 24 hours a day through August 2, 2005. The dial-in number for the audio replay is 706-645-9291 (reference code 7618798).

Jacobs, with over 35,000 employees and revenues exceeding $5.0 billion, provides technical, professional, and construction services globally.

Any statements made in this release that are not based on historical fact are forward-looking statements. Any forward-looking statements made in this release represent management's best judgement as to what may occur in the future. However, Jacobs' actual outcome and results are not guaranteed and are subject to certain risks, uncertainties and assumptions ("Future Factors"), and may differ materially from what is expressed. For a description of Future Factors that could cause actual results to differ materially from such forward-looking statements, see the discussion under the section "Forward-Looking Statements" included in Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Company's 2004 Annual Report on Form 10-K.



Results of Operations (in thousands, except per-share data)

Three Months Ended Nine Months Ended
June 30, June 30,
--------------------------------------------------
2005 2004 2005 2004
----------------------------------------------------------------------

Revenues $ 1,449,047 $1,119,536 $ 4,115,542 $ 3,378,549
Costs and Expenses:
Direct costs of
contracts (1,240,170) (960,418) (3,516,451) (2,889,257)
Selling, general
and
administrative
expenses (145,104) (112,487) (424,960) (337,458)

Operating Profit 63,773 46,631 174,131 151,834
----------------------------------------------------------------------

Other Income
(Expense):
Interest income 1,114 573 2,901 2,117
Interest expense (1,486) (649) (5,028) (2,221)
Miscellaneous
expense, net (825) (509) (2,878) (184)
----------------------------------------------------------------------
Total other
expense, net (1,197) (585) (5,005) (288)
----------------------------------------------------------------------

Earnings Before
Taxes 62,576 46,046 169,126 151,546

Income Tax Expense (22,526) (16,116) (60,886) (53,041)
======================================================================

Net Earnings $ 40,050 $ 29,930 $ 108,240 $ 98,505
======================================================================

Earnings Per Share:
Basic $ 0.70 $ 0.53 $ 1.90 $ 1.76
Diluted 0.68 0.52 1.85 1.72
======================================================================

Weighted Average
Shares Used to
Calculate Earnings
Per Share:
Basic 57,447 56,274 57,038 56,037
Diluted 58,882 57,555 58,427 57,414
======================================================================


Other Operational Information (in thousands)

Three Months Ended Nine Months Ended
June 30, June 30,
-----------------------------------------------
2005 2004 2005 2004
----------------------------------------------------------------------

Revenues by Major
Component:
Technical
professional
services $ 741,716 $ 549,283 $2,114,723 $1,688,796
Field services 707,331 570,253 2,000,818 1,689,753
----------------------------------------------------------------------
Total $1,449,047 $1,119,536 $4,115,541 $3,378,549
======================================================================

Depreciation Before
Taxes $ 9,447 $ 8,217 $ 28,512 $ 25,442
======================================================================

Capital Expenditures $ 10,607 $ 8,975 $ 33,490 $ 24,596
======================================================================


Selected Balance Sheet and Backlog Information (in thousands):

At June 30,
2005 2004
----------------------------------------------------------------------

Balance Sheet Information:
-------------------------
Cash and cash equivalents $ 201,740 $ 173,302
Working capital 542,780 473,659
Total debt 114,573 26,903
Stockholders' equity 1,140,112 957,035


Backlog Information(1):
----------------------
Technical professional services $ 4,198,800 $ 3,648,100
Field services 4,204,500 3,374,500
Total $ 8,403,300 $ 7,022,600

(1) During the quarter ended June 30, 2005, in connection with our
periodic review of the realization of capacity within our public
sector task order type projects, we removed approximately $150
million of technical professional services from previously
reported backlog. Additionally, we have reclassified approximately
$250 million of previously reported backlog from technical
professional services to field services.



Contact Information

  • Jacobs Engineering Group Inc.
    John W. Prosser, Jr., 626-578-6803