HOUSTON - KBR, Inc. (NYSE: KBR), today announced strong third quarter 2020 financial results after another solid quarter of earnings, margin performance, bookings and cash generation.

'Our people, with their unwavering commitment, focus and agility, continue to deliver outstanding results for our customers and drive operational excellence amidst the global pandemic. Together, these attributes have the business performing across all key metrics - earnings, margins, cash and book-to-bill,' said Stuart Bradie, President and CEO of KBR. 'Our strategy of advancing upmarket to expand high-end offerings is evident in the growth and bookings momentum realized across our space, technology, science and systems engineering businesses, underscoring the resilience of our business model and giving us the confidence to increase the fiscal 2020 cash and earnings guidance.'

Bradie continued, 'We also took a major step forward in executing our strategy with the completion of the Centauri acquisition in early October, accelerating growth into critical national security missions and strengthening our position as a provider of high-end, digitally enabled solutions and technologies in attractive end markets.' The addition of Centauri is firmly aligned with KBR's strategy to continually grow its business in differentiated, upmarket areas that provide attractive returns, growth and cash conversion. 'We are pleased to welcome our Centauri colleagues to KBR and thank every member of our combined team of teams for their commitment to advancing our strategy to create long-term value for stakeholders.'

While revenue in the company's high-end, technically differentiated businesses supporting space superiority, science and systems engineering increased during the quarter, overall revenue decreased primarily due to reduced activity in Middle East contingency operations and in the legacy Energy Solutions business due to previously announced portfolio shaping actions. Adjusted EBITDA and margins continue to be strong at 9% at the group level with ongoing healthy Government Solutions performance, superb Technology Solutions performance and Energy Solutions performance as planned. Year to date, the company reported $269 million of adjusted operating cash flow with all segments contributing at or above expectations. Book-to-bill of 1.1x for the company, excluding the impact of PFIs, is a healthy signal of future growth with Government Solutions posting 1.3x, Technology Solutions posting 1.3x and Energy Solutions posting 0.5x.

Liquidity and Capital Structure

On September 30, 2020, the company completed a private offering of $250 million of 4.750% Senior Notes due 2028 (the 'Notes'). The Notes are senior unsecured obligations of KBR and are fully and unconditionally guaranteed by each of the company's existing and future domestic subsidiaries. Net proceeds of approximately $245 million after fees and offering expenses were used to finance a portion of the purchase price for the Centauri acquisition that closed on October 1, 2020. Interest is payable semi-annually in arrears on March 30 and September 30 of each year, beginning on March 31, 2021, and the principal is due on September 30, 2028.

About KBR

KBR is a global provider of differentiated professional services and solutions across the asset and program life cycle within the government and technology sectors. KBR employs approximately 28,000 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.

Forward Looking Statement

This press release contains forward-looking 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,' '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.

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.

Contact:

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