'KBR is off to a strong start in 2021, building on its momentum with new program wins, innovative technologies and solid execution and safety performance, all contributing to profitable growth in the first quarter,' said
Key Financial Highlights
Revenue of
New programs, on-contract expansion and acquisitive growth, as follows: approximately
Selling, general and administrative expenses of
Adjusted EBITDA of
Recent Developments and New Business
In the quarter ended
Expanded footprint through new project/program wins, including a new five year,
Continued track record of innovation, bringing new technologies to market, including: Won a contract to provide KBR's proprietary K-COT catalytic olefins technology that converts naptha to propylene. Because of its differentiated fluidized bed continuous cycle process, K-COT produces larger volumes of high demand propylene at a significantly lower capex and opex cost and with a more attractive environmental footprint compared to competing technologies;
Won a contract to provide KBR's proprietary K-PRO propane dehydrogenation technology that converts propane to propylene. K-PRO, a new technology introduced in 2019, is a disruptive alternative enabling clients to measurably reduce cost and improve environmental footprint. Unlike competing technologies, the catalyst does not contain semi-precious metals or chromium, significantly reducing processing cost and eliminating the need to treat or dispose of chromium byproducts;
Awarded a new contract by the
Won a feasibility study for our groundbreaking ammonia-methanol co-production process. This technology combines KBR's market-leading ammonia technology and
Capital Deployment
KBR continues to employ a balanced approach to capital allocation, which includes investments that facilitate sustainable, long-term growth and prudent return of capital to shareholders. During the quarter, KBR's Board of Directors increased the company's quarterly dividend 10% to
Reaffirming FY 2021 Guidance
KBR has reaffirmed its expectations of FY 2021 financial results, including: Consolidated revenue:
Adjusted EBITDA margin: 9%
Effective tax rate: 25% to 26%
Earnings per share (EPS):
Operating cash flow (OCF):
Conference Call Details
The company will host a conference call to discuss its first quarter 2021 financial results on
About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
Forward Looking Statements
This press release and related comments by KBR management contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some examples include statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical. When used in this press release, the words 'estimates,' 'expects,' 'predicts,' 'continues,' 'looking ahead,' 'well-positioned,' 'anticipates,' 'projects,' 'plans,' 'intends,' 'believes,' 'forecasts' or future or conditional verbs such as 'will,' 'should,' 'could,' or 'may,' and variations of such words or similar expressions are intended to identify forward-looking statements. Such statements are based upon our current expectations and various assumptions, which are made in good faith, and we believe there is a reasonable basis for them. However, because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from the forward-looking statements contained in this press release. Additional information about potential risk factors that could affect our business and financial results is included in our latest Form 10-K and any subsequent Forms 10-Q and 8-K. We caution you not to place undue reliance on the forward-looking statements included in this press release, which speak only as of the date hereof. We disclaim any intent or obligation, except as required by law, to revise or update this information to reflect new information or future events or circumstances. We also disclaim any duty to comment on or correct information that may be contained in reports published by investment analysts or others.
Backlog generally represents the dollar amount of revenues we expect to realize in the future as a result of performing work on contracts and our pro-rata share of work to be performed by unconsolidated joint ventures. We generally include total expected revenues in backlog when a contract is awarded under a legally binding agreement. In many instances, arrangements included in backlog are complex, nonrepetitive and may fluctuate due to the release of contracted work in phases by the customer. Additionally, nearly all contracts allow customers to terminate the agreement at any time for convenience. Where contract duration is indefinite and clients can terminate for convenience without having to compensate us for periods beyond the date of termination, projects included in backlog are limited to the estimated amount of expected revenues within the following twelve months. Certain contracts provide maximum dollar limits, with actual authorization to perform work under the contract agreed upon on a periodic basis with the customer. In these arrangements, only the amounts authorized are included in backlog. For projects where we act solely in a project management capacity, we only include the value of our services on each project in backlog.
We define backlog, as it relates to
Within our Government Solutions business segment, we calculate estimated backlog for long-term contracts associated with the
Our proportionate share of backlog for projects related to unconsolidated joint ventures totaled
We estimate that as of
As of
Non-GAAP Financial Information
The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
EBITDA and Adjusted EBITDA
We evaluate performance based on EBITDA and Adjusted EBITDA. EBITDA is defined as Net income attributable to KBR, plus interest expense, net; provision for income taxes; other non-operating expense (income) and depreciation and amortization. Adjusted EBITDA excludes certain amounts included in EBITDA. EBITDA and Adjusted EBITDA for each of the three-month periods ended
Adjusted earnings per share (Adjusted EPS) for each of the three-month periods ended
Contact:
Tel: +1 713.753.2000
(C) 2021 Electronic News Publishing, source