Fiscal Q3 2022
|
Fiscal Q3 2021
| Change | |
Revenue | $3.8 billion | $3.6 billion | $0.2 billion |
Net Revenue | $3.2 billion | $3.0 billion | $0.2 billion |
GAAP Net Earnings from Continuing Operations | $196 million | $165 million | $31 million |
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations | $1.52 | $0.82 | $0.70 |
Adjusted Net Earnings from Continuing Operations | $240 million | $216 million | $24 million |
Adjusted EPS from Continuing Operations | $1.86 | $1.64 | $0.22 |
Fiscal Q3 2022 | Fiscal Q3 2021 | |
GAAP Net Earnings from Continuing Operations and Diluted Earnings Per Share (EPS) |
$196 million ($1.52 per share)
|
$165 million ($0.82 per share)
|
Adjustments to add back after-tax restructuring, transaction costs and other charges ($10.0 million and $7.6 million for the fiscal 2022 and 2021 periods, respectively before income taxes) and $(57.3) million, or $(0.44) per share, in EPS numerator adjustments relating to PA preference shares redemption value, which does not affect net earnings, in the fiscal 2021 period.
|
$7 million ($0.06 per share)
|
$4 million ($0.47 per share)
|
Other adjustments are comprised mainly of:
(a) add-back of amortization of intangible assets of $51.6 million and $49.6 million in the 2022 and 2021 periods, respectively,
(b) the removal of the fair value adjustments related to our former investment holdings in Worley and C3.ai, Inc. ("C3") stock of $1.0 million in the 2021 period,
(c) the exclusion of impacts on the Company's effective tax rates associated with revised estimates on U.S. taxation of certain foreign earnings and certain tax return filing adjustments,
(d) the removal of $30.8 million in additional income tax expense attributable to tax rate increases in the UK during 2021,
(e) applicable redeemable noncontrolling interests impacts for the above adjustment items and
(f) income tax expense adjustments for the above pre-tax adjustment items.
|
$36 million ($0.28 per share)
|
$46 million ($0.35 per share)
|
Adjusted Net Earnings from Continuing Operations and Adjusted EPS from Continuing Operations |
$240 million ($1.86 per share)
|
$216 million ($1.64 per share)
|
For the Three Months Ended | For the Nine Months Ended | |||||||
Unaudited | July 1, 2022 | July 2, 2021 | July 1, 2022 | July 2, 2021 | ||||
Revenues | $ | 3,827,093 | $ | 3,576,436 | $ | 11,041,777 | $ | 10,506,144 |
Direct cost of contracts | (3,002,618) | (2,759,501) | (8,550,418) | (8,290,137) | ||||
Gross profit | 824,475 | 816,935 | 2,491,359 | 2,216,007 | ||||
Selling, general and administrative expenses | (558,713) | (553,189) | (1,882,049) | (1,779,435) | ||||
Operating Profit | 265,762 | 263,746 | 609,310 | 436,572 | ||||
Other Income (Expense): | ||||||||
Interest income | 1,042 | 1,001 | 2,924 | 2,733 | ||||
Interest expense | (26,129) | (20,011) | (67,551) | (52,788) | ||||
Miscellaneous income, net | 31,440 | 38,658 | 51,802 | 138,705 | ||||
Total other income (expense), net | 6,353 | 19,648 | (12,825) | 88,650 | ||||
Earnings from Continuing Operations Before Taxes | 272,115 | 283,394 | 596,485 | 525,222 | ||||
Income Tax Expense from Continuing Operations | (59,491) | (109,186) | (121,545) | (175,437) | ||||
Net Earnings of the Group from Continuing Operations | 212,624 | 174,208 | 474,940 | 349,785 | ||||
Net (Loss) Earnings of the Group from Discontinued Operations | (343) | 384 | (576) | 11,690 | ||||
Net Earnings of the Group | 212,281 | 174,592 | 474,364 | 361,475 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (8,773) | (9,182) | (28,286) | (29,366) | ||||
Net (Earnings) Loss Attributable to Redeemable Noncontrolling interests | (7,525) | 384 | (27,246) | 101,776 | ||||
Net Earnings Attributable to Jacobs from Continuing Operations | 196,326 | 165,410 | 419,408 | 422,195 | ||||
Net Earnings Attributable to Jacobs | $ | 195,983 | $ | 165,794 | $ | 418,832 | $ | 433,885 |
Net Earnings Per Share: | ||||||||
Basic Net Earnings from Continuing Operations Per Share | $ | 1.53 | $ | 0.83 | $ | 3.25 | $ | 2.80 |
Basic Net Earnings from Discontinued Operations Per Share | $ | - | $ | - | $ | - | $ | 0.09 |
Basic Earnings Per Share | $ | 1.53 | $ | 0.83 | $ | 3.25 | $ | 2.89 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 1.52 | $ | 0.82 | $ | 3.23 | $ | 2.78 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | - | $ | - | $ | - | $ | 0.09 |
Diluted Earnings Per Share | $ | 1.52 | $ | 0.83 | $ | 3.23 | $ | 2.87 |
Three Months Ended | Nine Months Ended | |||||||
Unaudited | July 1, 2022 | July 2, 2021 | July 1, 2022 | July 2, 2021 | ||||
Revenues from External Customers: | ||||||||
Critical Mission Solutions | $ | 1,317,109 | $ | 1,218,089 | $ | 3,845,927 | $ | 3,822,949 |
People & Places Solutions | 2,232,404 | 2,102,550 | 6,330,906 | 6,329,088 | ||||
Pass Through Revenue
| (635,419) | (612,045) | (1,671,467) | (1,837,350) | ||||
People & Places Solutions Net Revenue | $ | 1,596,985 | $ | 1,490,505 | $ | 4,659,439 | $ | 4,491,738 |
PA Consulting | $ | 277,580 | $ | 255,797 | $ | 864,944 | $ | 354,107 |
Total Revenue | $ | 3,827,093 | $ | 3,576,436 | $ | 11,041,777 | $ | 10,506,144 |
Net Revenue | $ | 3,191,674 | $ | 2,964,391 | $ | 9,370,310 | $ | 8,668,794 |
Three Months Ended | Nine Months Ended | |||||||
July 1, 2022 | July 2, 2021 | July 1, 2022 | July 2, 2021 | |||||
Segment Operating Profit: | ||||||||
Critical Mission Solutions | $ | 104,305 | $ | 108,131 | $ | 329,042 | $ | 332,133 |
People & Places Solutions | 210,046 | 205,324 | 592,883 | 603,654 | ||||
PA Consulting | 51,448 | 56,791 | 182,850 | 84,708 | ||||
Total Segment Operating Profit | 365,799 | 370,246 | 1,104,775 | 1,020,495 | ||||
Other Corporate Expenses (1) | (89,887) | (104,532) | (284,479) | (238,198) | ||||
Restructuring, Transaction and Other Charges (2) | (10,150) | (1,968) | (210,986) | (345,725) | ||||
Total U.S. GAAP Operating Profit | 265,762 | 263,746 | 609,310 | 436,572 | ||||
Total Other Income (Expense), net (3) | 6,353 | 19,648 | (12,825) | 88,650 | ||||
Earnings from Continuing Operations Before Taxes | $ | 272,115 | $ | 283,394 | $ | 596,485 | $ | 525,222 |
(1) | Other corporate expenses also included intangibles amortization of $51.6 million and $49.6 million for the three months ended July 1, 2022 and July 2, 2021, respectively, and $146.9 million and $103.3 million for the nine months ended July 1, 2022 and July 2, 2021, respectively, with the comparative year-to-date period increase mainly attributable to higher amortization from the PA Consulting investment. |
(2) | Included in the nine months ended July 1, 2022 is $91.3 million in charges related to the final pre-tax settlement of the Legacy CH2M Matter, net of previously recorded reserves and $74.6 million of real estate impairment charges and $24.5 million in other transformation and other charges related to the Company's transformation initiatives. Included in the nine months ended July 2, 2021 are $297.4 million of costs incurred in connection with the investment in PA Consulting, in part classified as compensation costs. |
(3) | The three and nine months ended July 1, 2022 included a $13.9 million gain related to a cost method investment sold during the period. The nine months ended July 1, 2022 included a gain of $7.1 million related to a lease termination. The three and nine months ended July 2, 2021 include $38.7 million and $102.2 million, respectively, in fair value adjustments related to our investment in Worley stock (including Worley stock dividends) and certain foreign currency revaluations relating to the ECR sale and $1.0 million and $49.6 million, respectively, in fair value adjustments related to our investment in C3 stock, with both of these investments sold in fiscal 2021. The nine months ended July 2, 2021 also includes $38.9 million related to impairment of our AWE ML investment. |
July 1, 2022 | October 1, 2021 | |||
Unaudited | ||||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $ | 1,102,284 | $ | 1,014,249 |
Receivables and contract assets | 3,303,279 | 3,101,418 | ||
Prepaid expenses and other | 148,592 | 176,228 | ||
Total current assets | 4,554,155 | 4,291,895 | ||
Property, Equipment and Improvements, net | 327,906 | 353,117 | ||
Other Noncurrent Assets: | ||||
Goodwill | 7,328,384 | 7,197,000 | ||
Intangibles, net | 1,472,641 | 1,565,758 | ||
Deferred income tax assets | 49,328 | 103,193 | ||
Operating lease right-of-use assets | 519,045 | 650,097 | ||
Miscellaneous | 470,751 | 471,549 | ||
Total other noncurrent assets | 9,840,149 | 9,987,597 | ||
$ | 14,722,210 | $ | 14,632,609 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current Liabilities: | ||||
Current maturities of long-term debt | $ | 51,630 | $ | 53,456 |
Accounts payable | 945,422 | 908,441 | ||
Accrued liabilities | 1,374,948 | 1,533,559 | ||
Operating lease liability | 155,760 | 172,414 | ||
Contract liabilities | 661,573 | 542,054 | ||
Total current liabilities | 3,189,333 | 3,209,924 | ||
Long-term Debt | 3,520,494 | 2,839,933 | ||
Liabilities relating to defined benefit pension and retirement plans | 314,975 | 418,080 | ||
Deferred income tax liabilities | 242,703 | 214,380 | ||
Long-term operating lease liability | 651,261 | 758,358 | ||
Other deferred liabilities | 158,511 | 559,375 | ||
Commitments and Contingencies | ||||
Redeemable Noncontrolling interests | 664,519 | 657,722 | ||
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 - 127,577,542 shares and 128,892,540 shares as of July 1, 2022 and October 1, 2021, respectively
| 127,578 | 128,893 | ||
Additional paid-in capital | 2,666,157 | 2,590,012 | ||
Retained earnings | 4,082,070 | 4,015,578 | ||
Accumulated other comprehensive loss | (942,512) | (794,442) | ||
Total Jacobs stockholders' equity | 5,933,293 | 5,940,041 | ||
Noncontrolling interests | 47,121 | 34,796 | ||
Total Group stockholders' equity | 5,980,414 | 5,974,837 | ||
$ | 14,722,210 | $ | 14,632,609 |
For the Three Months Ended | For the Nine Months Ended | |||||||
Unaudited | July 1, 2022 | July 2, 2021 | July 1, 2022 | July 2, 2021 | ||||
Cash Flows from Operating Activities: | ||||||||
Net earnings attributable to the Group | $ | 212,281 | $ | 174,592 | $ | 474,364 | $ | 361,475 |
Adjustments to reconcile net earnings to net cash flows (used for) provided by operations: | ||||||||
Depreciation and amortization: | ||||||||
Property, equipment and improvements | 25,301 | 26,405 | 77,921 | 74,484 | ||||
Intangible assets | 51,551 | 49,555 | 146,889 | 103,308 | ||||
Gain on sale of ECR business | - | - | - | (15,608) | ||||
Gain on investment in equity securities | (13,862) | (37,702) | (13,862) | (152,145) | ||||
Stock based compensation | 16,544 | 14,542 | 41,705 | 41,519 | ||||
Equity in earnings of operating ventures, net of return on capital distributions | 942 | (3,092) | 14,222 | 3,261 | ||||
(Gain) Loss on disposals of assets, net | (5,183) | 396 | (4,762) | 749 | ||||
Impairment of long-lived assets and equity method investment | - | 6,941 | 74,585 | 40,138 | ||||
Deferred income taxes (benefit) | 46,104 | (2,644) | 62,144 | 38,419 | ||||
Changes in assets and liabilities, excluding the effects of businesses acquired: | ||||||||
Receivables and contract assets, net of contract liabilities | (80,726) | 158,450 | (114,607) | 231,992 | ||||
Prepaid expenses and other current assets | 13,047 | 32,681 | 28,963 | 47,202 | ||||
Miscellaneous other assets | 52,037 | 31,510 | 119,238 | 107,911 | ||||
Accounts payable | 35,974 | 2,014 | 54,422 | (150,736) | ||||
Accrued liabilities | (547,886) | (257,970) | (667,868) | (158,772) | ||||
Other deferred liabilities | (41,254) | (22,495) | (74,559) | (44,985) | ||||
Other, net | (13,957) | 158 | (21,626) | (4,639) | ||||
Net cash (used for) provided by operating activities | (249,087) | 173,341 | 197,169 | 523,573 | ||||
Cash Flows from Investing Activities: | ||||||||
Additions to property and equipment | (31,830) | (20,617) | (80,053) | (65,670) | ||||
Disposals of property and equipment and other assets | 8,222 | 41 | 9,286 | 468 | ||||
Capital contributions to equity investees, net of return of capital distributions | 1,674 | - | 2,756 | (4,193) | ||||
Acquisitions of businesses, net of cash acquired | (24,335) | - | (437,083) | (1,741,062) | ||||
Disposal of investment in equity securities | 13,862 | 38,994 | 13,862 | 52,021 | ||||
Proceeds related to sales of businesses | - | - | - | 36,360 | ||||
Net cash (used for) provided by investing activities | (32,407) | 18,418 | (491,232) | (1,722,076) | ||||
Cash Flows from Financing Activities: | ||||||||
Net proceeds from (payments of) borrowings | 412,038 | (358,503) | 799,151 | 1,423,854 | ||||
Debt issuance costs | - | (50) | - | (2,747) | ||||
Proceeds from issuances of common stock | 12,800 | 11,130 | 40,987 | 29,715 | ||||
Common stock repurchases | (200,709) | - | (250,709) | (24,949) | ||||
Taxes paid on vested restricted stock | (176) | (154) | (28,574) | (25,796) | ||||
Cash dividends to shareholders | (29,341) | (27,363) | (86,588) | (79,801) | ||||
Net dividends associated with noncontrolling interests | (6,687) | (10,641) | (16,103) | (40,083) | ||||
Repurchase of redeemable noncontrolling interests | (10,979) | - | (46,074) | - | ||||
Proceeds from issuances of redeemable noncontrolling interests | 49,738 | - | 49,738 | - | ||||
Net cash provided by (used for) financing activities | 226,684 | (385,581) | 461,828 | 1,280,193 | ||||
Effect of Exchange Rate Changes | (67,127) | 5,699 | (79,919) | 34,617 | ||||
Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash | (121,937) | (188,123) | 87,846 | 116,307 | ||||
Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period | 1,236,358 | 1,166,854 | 1,026,575 | 862,424 | ||||
Cash and Cash Equivalents, including Restricted Cash, at the End of the Period | $ | 1,114,421 | $ | 978,731 | $ | 1,114,421 | $ | 978,731 |
July 1, 2022 | July 2, 2021 | |||
Critical Mission Solutions | $ | 10,222 | $ | 9,565 |
People & Places Solutions | 17,542 | 15,557 | ||
PA Consulting | 326 | 314 | ||
Total | $ | 28,090 | $ | 25,436 |
Three Months Ended | ||||||||
(in thousands) | July 1, 2022 | |||||||
Unaudited | U.S. GAAP | Effects of Restructuring, Transaction and Other Charges (1) | Other Adjustments (2) | Adjusted | ||||
Revenues | $ | 3,827,093 | $ | - | $ | - | $ | 3,827,093 |
Pass through revenue
| - | - | (635,419) | (635,419) | ||||
Net revenue | 3,827,093 | - | (635,419) | 3,191,674 | ||||
Direct cost of contracts | (3,002,618) | - | 635,419 | (2,367,199) | ||||
Gross profit | 824,475 | - | - | 824,475 | ||||
Selling, general and administrative expenses | (558,713) | 10,150 | 51,551 | (497,012) | ||||
Operating Profit | 265,762 | 10,150 | 51,551 | 327,463 | ||||
Total other income (expense), net | 6,353 | (131) | - | 6,222 | ||||
Earnings from Continuing Operations Before Taxes | 272,115 | 10,019 | 51,551 | 333,685 | ||||
Income Tax Expense from Continuing Operations | (59,491) | (2,440) | (10,479) | (72,410) | ||||
Net Earnings of the Group from Continuing Operations | 212,624 | 7,579 | 41,072 | 261,275 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (8,773) | - | - | (8,773) | ||||
Net Earnings Attributable to Redeemable Noncontrolling interests | (7,525) | (162) | (4,993) | (12,680) | ||||
Net Earnings Attributable to Jacobs from Continuing Operations | 196,326 | 7,417 | 36,079 | 239,822 | ||||
Net Loss Attributable to Discontinued Operations | (343) | - | - | (343) | ||||
Net Earnings attributable to Jacobs | $ | 195,983 | $ | 7,417 | $ | 36,079 | $ | 239,479 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 1.52 | $ | 0.06 | $ | 0.28 | $ | 1.86 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | - | $ | - | $ | - | $ | - |
Diluted Earnings Per Share | $ | 1.52 | $ | 0.06 | $ | 0.28 | $ | 1.86 |
Operating profit margin | 6.9 | % | 10.3 | % |
(1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation initiatives 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 $635.4 million, (b) the removal of amortization of intangible assets of $51.6 million, (c) the exclusion of impacts on the Company's effective tax rates associated with revised estimates on US taxation of certain foreign earning and, certain tax return filing adjustments, (d) applicable redeemable noncontrolling interests impacts for the above adjustment items and (e) income tax expense adjustments for the above pre-tax adjustment items.
|
Three Months Ended | ||||||||
(in thousands) | July 2, 2021 | |||||||
Unaudited | U.S. GAAP | Effects of Restructuring, Transaction and Other Charges (1) | Other Adjustments (2) | Adjusted | ||||
Revenues | $ | 3,576,436 | $ | - | $ | - | $ | 3,576,436 |
Pass through revenue
| - | - | (612,045) | (612,045) | ||||
Net revenue | 3,576,436 | - | (612,045) | 2,964,391 | ||||
Direct cost of contracts | (2,759,501) | (3) | 612,045 | (2,147,459) | ||||
Gross profit (loss) | 816,935 | (3) | - | 816,932 | ||||
Selling, general and administrative expenses | (553,189) | 1,971 | 49,555 | (501,663) | ||||
Operating Profit | 263,746 | 1,968 | 49,555 | 315,269 | ||||
Total other income (expense), net | 19,648 | 5,674 | (39,693) | (14,371) | ||||
Earnings from Continuing Operations Before Taxes | 283,394 | 7,642 | 9,862 | 300,898 | ||||
Income Tax (Expense) Benefit from Continuing Operations | (109,186) | (7,287) | 56,107 | (60,366) | ||||
Net Earnings of the Group from Continuing Operations | 174,208 | 355 | 65,969 | 240,532 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (9,182) | - | - | (9,182) | ||||
Net Loss (Earnings) Attributable to Redeemable Noncontrolling interests | 384 | 3,553 | (19,614) | (15,677) | ||||
Net Earnings from Continuing Operations attributable to Jacobs | 165,410 | 3,908 | 46,355 | 215,673 | ||||
Net Earnings Attributable to Discontinued Operations | 384 | - | - | 384 | ||||
Net Earnings attributable to Jacobs | $ | 165,794 | $ | 3,908 | $ | 46,355 | $ | 216,057 |
Preferred Redeemable Noncontrolling interests redemption value adjustment | (57,307) | 57,307 | - | - | ||||
Net earnings from continuing operations allocated to common stock for EPS calculation | $ | 108,103 | $ | 61,215 | $ | 46,355 | $ | 215,673 |
Diluted Net Earnings from Continuing Operations Per Share (3) | $ | 0.82 | $ | 0.47 | $ | 0.35 | $ | 1.64 |
Diluted Net Earnings from Discontinued Operations Per Share (3) | $ | - | $ | - | $ | - | $ | - |
Diluted Earnings Per Share (3) | $ | 0.83 | $ | 0.47 | $ | 0.35 | $ | 1.64 |
Operating profit margin | 7.4 | % | 10.6 | % |
(1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation and acquisition related programs. Also includes $(57.3) million or $(0.44) per share in EPS numerator adjustments relating to the PA preference shares redemption value, which did not affect net earnings.
(2) Includes mainly (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 $612.0 million, (b) the removal of amortization of intangible assets of $49.6 million, (c) the removal of $38.7 million in fair value adjustments related to our investment in Worley stock and certain foreign currency revaluations relating to the ECR sale, (d) the removal of the fair value adjustment of the Company's investment in C3 of $1.0 million, (e) the exclusion of impacts on the Company's effective tax rates associated with revised estimates on US taxation of certain foreign earnings, certain tax return filing adjustments and removal of $30.8 million in additional income tax expense attributable to tax rate increases in the UK during 2021, (f) applicable redeemable noncontrolling interest impacts for the above adjustment items and (g) income tax expense adjustments for the above pre-tax adjustment items.
|
Nine Months Ended | ||||||||
(in thousands) | July 1, 2022 | |||||||
Unaudited | U.S. GAAP | Effects of Restructuring, Transaction and Other Charges (1) | Other Adjustments (2) | Adjusted | ||||
Revenues | $ | 11,041,777 | $ | - | $ | - | $ | 11,041,777 |
Pass through revenue
| - | - | (1,671,467) | (1,671,467) | ||||
Net revenue | 11,041,777 | - | (1,671,467) | 9,370,310 | ||||
Direct cost of contracts | (8,550,418) | 3 | 1,671,467 | (6,878,948) | ||||
Gross profit | 2,491,359 | 3 | - | 2,491,362 | ||||
Selling, general and administrative expenses | (1,882,049) | 210,983 | 146,889 | (1,524,177) | ||||
Operating Profit | 609,310 | 210,986 | 146,889 | 967,185 | ||||
Total other (expense) income, net | (12,825) | (10,682) | 5 | (23,502) | ||||
Earnings from Continuing Operations Before Taxes | 596,485 | 200,304 | 146,894 | 943,683 | ||||
Income Tax Expense from Continuing Operations | (121,545) | (39,541) | (43,693) | (204,779) | ||||
Net Earnings of the Group from Continuing Operations | 474,940 | 160,763 | 103,201 | 738,904 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (28,286) | - | - | (28,286) | ||||
Net Earnings Attributable to Redeemable Noncontrolling interests | (27,246) | (424) | (16,844) | (44,514) | ||||
Net Earnings Attributable to Jacobs from Continuing Operations | 419,408 | 160,339 | 86,357 | 666,104 | ||||
Net Loss Attributable to Discontinued Operations | (576) | - | - | (576) | ||||
Net Earnings attributable to Jacobs | $ | 418,832 | $ | 160,339 | $ | 86,357 | $ | 665,528 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 3.23 | $ | 1.24 | $ | 0.67 | $ | 5.13 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | - | $ | - | $ | - | $ | - |
Diluted Earnings Per Share | $ | 3.23 | $ | 1.24 | $ | 0.67 | $ | 5.13 |
Operating profit margin | 5.5 | % | 10.3 | % |
(1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation initiatives and acquisition related programs, including $91.3 million related to the final pre-tax settlement of the Legacy CH2M Matter, net of previously recorded reserves, as well as $74.6 million for the Company's real estate impairment.
(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 $1.67 billion, (b) the removal of amortization of intangible assets of $146.9 million, (c) the exclusion of impacts on the Company's effective tax rates associated with revised estimates on US taxation of certain foreign earnings and certain tax return filing adjustments, (d) applicable redeemable noncontrolling interests impacts for the above adjustment items and (e) income tax expense adjustments for the above pre-tax adjustment items.
|
Nine Months Ended | ||||||||
(in thousands) | July 2, 2021 | |||||||
Unaudited | U.S. GAAP | Effects of Restructuring, Transaction and Other Charges (1) | Other Adjustments (2) | Adjusted | ||||
Revenues | $ | 10,506,144 | $ | - | $ | - | $ | 10,506,144 |
Pass through revenue
| - | - | (1,837,350) | (1,837,350) | ||||
Net revenue | 10,506,144 | - | (1,837,350) | 8,668,794 | ||||
Direct cost of contracts | (8,290,137) | 283 | 1,837,350 | (6,452,504) | ||||
Gross profit | 2,216,007 | 283 | - | 2,216,290 | ||||
Selling, general and administrative expenses | (1,779,435) | 345,442 | 103,282 | (1,330,711) | ||||
Operating Profit | 436,572 | 345,725 | 103,282 | 885,579 | ||||
Total other income (expense), net | 88,650 | 42,871 | (151,992) | (20,471) | ||||
Earnings (Loss) from Continuing Operations Before Taxes | 525,222 | 388,596 | (48,710) | 865,108 | ||||
Income Tax (Expense) Benefit from Continuing Operations | (175,437) | (29,398) | 10,186 | (194,649) | ||||
Net Earnings (Loss) of the Group from Continuing Operations | 349,785 | 359,198 | (38,524) | 670,459 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (29,366) | - | - | (29,366) | ||||
Net Earnings (Loss) Attributable to Redeemable Noncontrolling interests | 101,776 | (103,480) | (20,981) | (22,685) | ||||
Net Earnings (Loss) from Continuing Operations attributable to Jacobs | 422,195 | 255,718 | (59,505) | 618,408 | ||||
Net Earnings Attributable to Discontinued Operations | 11,690 | - | - | 11,690 | ||||
Net Earnings (Loss) attributable to Jacobs | $ | 433,885 | $ | 255,718 | $ | (59,505) | $ | 630,098 |
Preferred Redeemable Noncontrolling interests redemption value adjustment | (57,307) | 57,307 | - | - | ||||
Net earnings (loss) from continuing operations allocated to common stock for EPS calculation | $ | 364,888 | $ | 313,025 | $ | (59,505) | $ | 618,408 |
Diluted Net Earnings (Loss) from Continuing Operations Per Share | $ | 2.78 | $ | 2.39 | $ | (0.45) | $ | 4.71 |
Diluted Net Earnings (Loss) from Discontinued Operations Per Share | $ | 0.09 | $ | - | $ | - | $ | 0.09 |
Diluted Earnings (Loss) Per Share | $ | 2.87 | $ | 2.39 | $ | (0.45) | $ | 4.80 |
Operating profit margin | 4.2 | % | 10.2 | % |
(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 our AWE ML investment, along with after-tax $287.2 million in one-time PA Consulting deal related costs. Also includes $(57.3) million or $(0.44) per share in EPS numerator adjustments relating to the PA preference shares redemption value, which did not affect net earnings.
(2) Includes mainly (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 $1.8 billion, (b) the removal of amortization of intangible assets of $103.3 million, (c) the removal of $102.2 million in fair value adjustments related to our investment in Worley stock and certain foreign currency revaluations relating to the ECR sale, (d) the removal of the fair value adjustment of the Company's investment in C3 of $49.6 million, (e) the exclusion of impacts on the Company's effective tax rates associated with revised estimates on US taxation of certain foreign earnings, certain tax return filing adjustments and the removal of $30.8 million in additional income tax expense attributable to tax rate increases in the UK during in 2021, (f) applicable redeemable noncontrolling interest impacts for the above adjustment items and (g) income tax expense adjustments for the above pre-tax adjustment items.
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Three Months Ended | ||||||
(in millions) | July 1, 2022 | July 2, 2021 | % Change | |||
Total Pro Forma Revenue | ||||||
Pro Forma Revenue | $ | 3,827.1 | $ | 3,598.4 | 6.4 | % |
Exchange rate effect | 130.1 | |||||
Constant currency Pro Forma Revenue | $ | 3,957.2 | 10.0 | % | ||
Total Net Revenue | ||||||
Net Revenue | $ | 3,191.7 | $ | 2,964.4 | 7.7 | % |
Exchange rate effect | 112.7 | |||||
Constant currency Net Revenue | $ | 3,304.4 | 11.5 | % | ||
Three Months Ended | Nine Months Ended | |||||||
Unaudited | July 1, 2022 | July 2, 2021 | July 1, 2022 | July 2, 2021 | ||||
Numerator for Basic and Diluted EPS: | ||||||||
Net earnings attributable to Jacobs from continuing operations | $ | 196,326 | $ | 165,410 | $ | 419,408 | $ | 422,195 |
Preferred Redeemable Noncontrolling interests redemption value adjustment | - | (57,307) | - | (57,307) | ||||
Net earnings from continuing operations allocated to common stock for EPS calculation | $ | 196,326 | $ | 108,103 | $ | 419,408 | $ | 364,888 |
Net (loss) earnings from discontinued operations allocated to common stock for EPS calculation | $ | (343) | $ | 384 | $ | (576) | $ | 11,690 |
Net earnings allocated to common stock for EPS calculation | $ | 195,983 | $ | 108,487 | $ | 418,832 | $ | 376,578 |
Denominator for Basic and Diluted EPS: | ||||||||
Shares used for calculating basic EPS attributable to common stock | 128,225 | 130,385 | 128,966 | 130,205 | ||||
Effect of dilutive securities: | ||||||||
Stock compensation plans | 708 | 1,035 | 767 | 1,040 | ||||
Shares used for calculating diluted EPS attributable to common stock | 128,933 | 131,420 | 129,733 | 131,245 | ||||
Net Earnings Per Share: | ||||||||
Basic Net Earnings from Continuing Operations Per Share | $ | 1.53 | $ | 0.83 | $ | 3.25 | $ | 2.80 |
Basic Net Earnings from Discontinued Operations Per Share | $ | - | $ | - | $ | - | $ | 0.09 |
Basic Earnings Per Share | $ | 1.53 | $ | 0.83 | $ | 3.25 | $ | 2.89 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 1.52 | $ | 0.82 | $ | 3.23 | $ | 2.78 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | - | $ | - | $ | - | $ | 0.09 |
Diluted Earnings Per Share | $ | 1.52 | $ | 0.83 | $ | 3.23 | $ | 2.87 |
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Jacobs Engineering Group Inc. published this content on 01 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2022 10:54:02 UTC.