Double-Digit Fourth Quarter Operating
Profit and EPS Year-Over-Year Growth
Robust Q4 Cash Flow From Operations
Generation With Over 100% Cash Conversion
PA Consulting-led Team Selected by UK
Ministry of Defence to Deliver Software Defined Defense
Solutions
Robust Backlog and Pipeline Driven by
Global Climate Response, Infrastructure, Supply Chain Modernization
and National Security
DALLAS, Nov. 21,
2022 /PRNewswire/ -- Jacobs Solutions Inc. (NYSE: J)
today announced its financial results for the fiscal fourth quarter
and fiscal year ended September 30, 2022.
Q4 2022 Financial Highlights:
- Revenue of $3.9 billion grew 8.2%
year-over-year; net revenue1 up 11% in constant
currency1
- Net earnings of $225 million and
EPS from continuing operations of $1.75
- Adjusted EPS1 from continuing operations of
$1.80, up 14% year-over-year and 18%
in constant currency
- Adjusted EBITDA1 of $350 million, up 13%
year-over-year and up 17% in constant currency
- Cash flow from operations of $278
million and free cash flow1 of $230 million, driven by strong DSO
performance
- Backlog1 increased $1.2
billion to $27.9 billion, up
5% year-over-year and 8% in constant currency
Fiscal Year 2022 Highlights:
- Revenue growth of 5.9% and net revenue up 10% year-over-year in
constant currency
- Net earnings from continuing operations of $644 million, up 38%, and FY22 EPS of
$4.98 up 60%
- Adjusted EPS of $6.93, up 10%
year-over-year; $7.12 on a constant
currency basis up 13%
- Adjusted EBITDA year-over-year growth of 10% to $1.4 billion and up 12% in constant currency
- Cash flow from operations of $475
million and free cash flow of $347
million, includes previously announced Legacy CH2M Matter
settlement outflow of $475
million2 during Q3, $55
million tax repayment and $63
million of other items.
Jacobs' Chair and CEO Steve
Demetriou commented, "We finished fiscal 2022 with strong
top and bottom line performance positioning the company for
continued growth in fiscal 2023. Within Jacobs and PA Consulting,
our scientists, engineers and thought leaders address many of the
world's most complex challenges, like partnering with NASA to
launch humans into deep space, driving energy transition solutions
across the globe, and delivering software defined solutions to
protect the next-generation digitally enabled UK soldier. Our focus
on strong values and a brand promise to continue 'Challenging
today. Reinventing tomorrow' is the intangible competitive
differentiator that truly makes Jacobs a company like no
other."
Jacobs' President and CFO Kevin
Berryman added, "We achieved strong revenue growth and
operating margin expansion during the fourth quarter, and full
fiscal year 2022, driven by our determination on delivering higher
value, higher margin solutions with a disciplined focus on
operational excellence. We are excited about the results and
building momentum of our infrastructure and advanced facilities
People & Places Solutions business. Our fourth quarter cash
flow was robust and full year cash flow was in-line with our
expectations. Looking into fiscal 2023 and beyond, we are aligned
to multiple large, growing and well-funded priorities including
global infrastructure modernization, climate response, investments
in critical supply chains and national security."
Financial Outlook3
Given the volatility of FX rates we are providing our outlook
under two FX scenarios 1) an outlook based on constant currency
which provides greater insight of underlying business performance,
and 2) an outlook based on recent FX rates.
Based on fiscal 2022 average FX rates, the Company's outlook for
fiscal 2023 adj. EBITDA is $1,465M to
$1,545M, and adj. EPS of $7.60 to $7.90, up
10% and 12% respectively at the midpoints.
Based on FX rates in early November, the Company's outlook for
fiscal 2023 adj. EBITDA is $1,400M to
$1,480M and adjusted EPS of
$7.20 to $7.50, both up 6% at the midpoints.
On a net revenue basis the difference between these two
scenarios is approximately $430
million.
Our constant currency fiscal 2023 outlook is based off of our
estimate of year-over-year FX impact to operating profit. The
constant currency impact excludes the impact of year-over-year FX
translation on other income from items such as pension costs,
unrealized exchange gains and losses and income taxes.
1See Non-GAAP Financial Measures and Operating
Metrics, and GAAP Reconciliations, beginning on page 13, for
additional detail.
2On April 12, 2022, the
Company paid cash of AUD640 million, or approximately $475 million using mid-April 2022 exchange rates, which represents
the final pre-tax settlement of Legacy CH2M Matter.
3Reconciliation of fiscal 2023 adjusted EBITDA and
adjusted EPS, based on either FX rate scenario, to the most
directly comparable GAAP measure is not available without
unreasonable efforts because the Company cannot predict with
sufficient certainty all the components required to provide such
reconciliation, including with respect to the costs and charges
relating to transaction expenses, restructuring and integration to
be incurred in fiscal 2023.
Fourth
Quarter Review
|
|
Fiscal Q4
2022
|
Fiscal Q4
2021
|
Change
|
Revenue
|
$3.9 billion
|
$3.6 billion
|
$0.3 billion
|
Net
Revenue
|
$3.2 billion
|
$3.0 billion
|
$0.2 billion
|
GAAP Net Earnings
from Continuing Operations
|
$225 million
|
$45 million
|
$180 million
|
GAAP Earnings Per
Diluted Share (EPS) from Continuing Operations
|
$1.75
|
$0.34
|
$1.41
|
Adjusted Net
Earnings from Continuing Operations
|
$231 million
|
$207 million
|
$24 million
|
Adjusted EPS from
Continuing Operations
|
$1.80
|
$1.58
|
$0.22
|
The Company's adjusted net earnings from continuing operations
and adjusted EPS from continuing operations for the fourth quarter
of fiscal 2022 and fiscal 2021 exclude the adjustments set forth in
the table below. For additional information regarding these
adjustments and a reconciliation of adjusted net earnings and
adjusted EPS to net earnings and EPS, respectively, as well as a
reconciliation of net revenue to revenue, refer to the section
entitled "Non-GAAP Financial Measures" at the end of this
release.
|
Fiscal Q4
2022
|
Fiscal Q4
2021
|
GAAP Net Earnings from
Continuing Operations and Diluted Earnings Per Share
(EPS)
|
$225 million
($1.75 per share)
|
$45 million
($0.34 per share)
|
Adjustments for
Restructuring, transaction costs and other (recoveries) charges on
an after-tax basis ($(14.9) million and $4.3 million for the fiscal
2022 and 2021 periods, respectively, before income
taxes).
|
$(42) million
($(0.33) per diluted share)
|
$49 million
($0.37 per diluted share)
|
Other adjustments
include:
(a) add-back of
amortization of intangible assets of $51.7 million and $46.5
million in the 2022 and 2021 periods, respectively,
(b) the removal of
$67.5 million in fair value gains and (losses) related to our
investment in Worley stock (net of Worley stock dividend) and
certain foreign currency revaluations relating to ECR sale 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
$(1.7) million in additional income tax expense attributable to tax
rate increases in the UK during in 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.
|
$49 million
($0.38 per diluted share)
|
$114 million
($0.86 per diluted share)
|
Adjusted Net Earnings
from Continuing Operations and Adjusted EPS from Continuing
Operations
|
$231 million ($1.80 per diluted share)
|
$207 million ($1.58 per diluted share)
|
(note: earnings per
share amounts may not add due to rounding)
|
The Company's U.S. GAAP effective tax rate for continuing
operations is 14% for the fiscal fourth quarter 2022 and fiscal
fourth quarter 2022 adjusted earnings per share from continuing
operations reflects a 20% adjusted effective tax rate.
Fiscal 2022
Review
|
|
Fiscal
2022
|
Fiscal
2021
|
Change
|
Revenue
|
$14.9
billion
|
$14.1
billion
|
$0.8 billion
|
Net
Revenue
|
$12.6
billion
|
$11.7
billion
|
$0.9 billion
|
GAAP Net Earnings
from Continuing Operations
|
$644 million
|
$467 million
|
$177 million
|
GAAP Earnings Per
Diluted Share (EPS) from Continuing Operations
|
$4.98
|
$3.12
|
$1.86
|
Adjusted Net
Earnings from Continuing Operations
|
$897 million
|
$826 million
|
$71 million
|
Adjusted EPS from
Continuing Operations
|
$6.93
|
$6.29
|
$0.64
|
The Company's adjusted net earnings and adjusted EPS for fiscal
2022 and fiscal 2021 exclude the charges and costs set forth in the
table below. For additional information regarding these adjustments
and a reconciliation of adjusted net earnings and adjusted EPS to
net earnings and EPS, respectively, as well as a reconciliation of
net revenue to revenue, refer to the section entitled "Non-GAAP
Financial Measures" at the end of this release.
|
Fiscal
2022
|
Fiscal
2021
|
GAAP Net Earnings from
Continuing Operations and Diluted Earnings Per Share
(EPS)
|
$644 million
($4.98 per share)
|
$467 million
($3.12 per share)
|
Adjustments for
after-tax Restructuring, transaction costs and other charges
($185.4 million and $392.9 million for the fiscal 2022 and 2021
periods, respectively, before income taxes), comprised mainly of
(i) a pre-tax $91.3 million charge related to the final settlement
related to the Legacy CH2M Matter, net of previously recorded
reserves and approximately $27 million in third party recoveries
was recorded as receivables reducing SG&A, (ii) $78.3 for the
Company's real estate impairment in the fiscal 2022 period and
(iii) PA Consulting one time deal related charges, including $261
million in pre-tax compensation costs associated with the
transaction 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.
|
$118 million
($0.91 per diluted share)
|
$304 million
($2.76 per diluted share)
|
Other adjustments
include:
(a) add-back of
amortization of intangible assets of $198.6 million and $149.8
million in the 2022 and 2021 periods, respectively,
(b) the removal of
$34.7 million in fair value gains and (losses) related to our
investment in Worley stock (net of Worley stock dividend) and
certain foreign currency revaluations relating to ECR sale in the
2021 period,
(c) the removal of the
fair value gains and (losses) for the Company's investment in
C3.ai, Inc. ("C3") of $49.6 million in the 2021 period,
(d) the removal of
$29.1 million in additional income tax expense attributable to tax
rate increases in the UK during in 2021,
(e) applicable
noncontrolling interests impacts for the above adjustment items
and
(f) associated income
tax expense adjustments for the above pre-tax adjustment
items.
|
$135 million
($1.04 per diluted share)
|
$54 million
($0.41 per diluted share)
|
Adjusted Net Earnings
from Continuing Operations and Adjusted EPS from Continuing
Operations
|
$897 million
($6.93 per diluted share)
|
$826 million
($6.29 per diluted share)
|
(note: earnings per
share amounts may not add due to rounding)
|
The Company's U.S. GAAP effective tax rate for continuing
operations is 18% for the fiscal year 2022 and fiscal year 2022
adjusted earnings per share from continuing operations reflects a
21% adjusted effective tax rate.
Jacobs is hosting a conference call at 10:00 A.M. ET on Monday November 21, 2022,
which will be webcast live at www.jacobs.com.
About Jacobs
At Jacobs, we're challenging today to reinvent tomorrow by
solving the world's most critical problems for thriving cities,
resilient environments, mission-critical outcomes, operational
advancement, scientific discovery and cutting-edge manufacturing,
turning abstract ideas into realities that transform the world for
good. With approximately $15 billion
in annual revenue and a talent force of approximately 60,000,
Jacobs provides a full spectrum of professional services including
consulting, technical, scientific and project delivery for the
government and private sectors. Visit jacobs.com and connect with
Jacobs on LinkedIn, Twitter, Facebook and Instagram.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that do not directly relate to any
historical or current fact. When used herein, words such as
"expects," "anticipates," "believes," "seeks," "estimates,"
"plans," "intends," "future," "will," "would," "could," "can,"
"may," and similar words are intended to identify forward-looking
statements. Examples of forward-looking statements include, but are
not limited to, statements regarding our expectations as to our
future growth, prospects, financial outlook and business strategy
for future fiscal years, including our expectations for our fiscal
2023 adjusted EBITDA and adjusted EPS, under different FX rate
scenarios, as well as our expectations for the foreign currency
translation impact on net revenue. You should not place undue
reliance on these forward-looking statements. Although such
statements are based on management's current estimates and
expectations, and/or 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. Such factors include our ability to execute on our
three-year corporate strategy, including our ability to invest in
the tools needed to implement our strategy, competition from
existing and future competitors in our target markets, our ability
to achieve the cost-savings and synergies contemplated by our
recent acquisitions within the expected time frames or to achieve
them fully and to successfully integrate acquired businesses while
retaining key personnel, the impact of the COVID-19 pandemic, and
any resulting economic downturn on our results, prospects and
opportunities, measures or restrictions imposed by governments and
health officials in response to the pandemic, the timing of the
award of projects and funding under the Infrastructure Investment
and Jobs Act, financial market risks that may affect the Company's
funding obligations under defined benefit pension and
postretirement plans, as well as general economic conditions,
including inflation and the actions taken by monetary authorities
in response to inflation, changes in interest rates, and foreign
currency exchange rates, changes in capital markets, the
possibility of a recession, and geopolitical events and conflicts
among others. The impact of such matters includes, but is not
limited to, the possible reduction in demand for certain of our
product solutions and services and the delay or abandonment of
ongoing or anticipated projects due to the financial condition of
our clients and suppliers or to governmental budget constraints or
changes to governmental budgetary priorities; the inability of our
clients to meet their payment obligations in a timely manner or at
all; potential issues and risks related to a significant portion of
our employees working remotely; illness, travel restrictions and
other workforce disruptions that have and could continue to
negatively affect our supply chain and our ability to timely and
satisfactorily complete our clients' projects; difficulties
associated with retaining and hiring additional employees; and the
inability of governments in certain of the countries in which we
operate to effectively mitigate the financial or other impacts of
the COVID-19 pandemic on their economies and workforces and our
operations therein. The foregoing factors and potential future
developments are inherently uncertain, unpredictable and, in many
cases, beyond our control. For a description of these and
additional 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 year ended September
30, 2022, and in particular the discussions contained
therein 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. The Company is not under any duty to update any of the
forward-looking statements after the date of this press release to
conform to actual results, except as required by applicable
law.
Financial
Highlights:
Results of
Operations (in thousands, except per-share data) (Quarterly data
unaudited):
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 30,
2022
|
|
October 1,
2021
|
|
September 30,
2022
|
|
October 1,
2021
|
Revenues
|
$
3,881,048
|
|
$
3,586,487
|
|
$ 14,922,825
|
|
$ 14,092,632
|
Direct cost of
contracts
|
(3,045,367)
|
|
(2,758,723)
|
|
(11,595,785)
|
|
(11,048,860)
|
Gross profit
|
835,681
|
|
827,764
|
|
3,327,040
|
|
3,043,772
|
Selling, general and
administrative expenses
|
(527,141)
|
|
(576,248)
|
|
(2,409,190)
|
|
(2,355,683)
|
Operating
Profit
|
308,540
|
|
251,516
|
|
917,850
|
|
688,089
|
Other (Expense)
Income:
|
|
|
|
|
|
|
|
Interest
income
|
1,565
|
|
770
|
|
4,489
|
|
3,503
|
Interest
expense
|
(32,695)
|
|
(19,926)
|
|
(100,246)
|
|
(72,714)
|
Miscellaneous income
(expense), net
|
2,452
|
|
(61,981)
|
|
54,254
|
|
76,724
|
Total other (expense)
income, net
|
(28,678)
|
|
(81,137)
|
|
(41,503)
|
|
7,513
|
Earnings From
Continuing Operations Before Taxes
|
279,862
|
|
170,379
|
|
876,347
|
|
695,602
|
Income Tax Expense from
Continuing Operations
|
(39,358)
|
|
(99,344)
|
|
(160,903)
|
|
(274,781)
|
Net Earnings of the
Group from Continuing Operations
|
240,504
|
|
71,035
|
|
715,444
|
|
420,821
|
Net Earnings (Loss) of
the Group from Discontinued Operations
|
544
|
|
(1,682)
|
|
(32)
|
|
10,008
|
Net Earnings of the
Group
|
241,048
|
|
69,353
|
|
715,412
|
|
430,829
|
Net Earnings
Attributable to Noncontrolling Interests from Continuing
Operations
|
(8,502)
|
|
(9,847)
|
|
(36,788)
|
|
(39,213)
|
Net (Earnings) Loss
Attributable to Redeemable Noncontrolling interests
|
(7,339)
|
|
(16,362)
|
|
(34,585)
|
|
85,414
|
Net Earnings
Attributable to Jacobs from Continuing Operations
|
224,663
|
|
44,826
|
|
644,071
|
|
467,022
|
Net Earnings
Attributable to Jacobs
|
$ 225,207
|
|
$
43,144
|
|
$ 644,039
|
|
$ 477,030
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per Share
|
$
1.76
|
|
$
0.34
|
|
$
5.01
|
|
$
3.15
|
Basic Net (Loss)
Earnings from Discontinued Operations Per Share
|
$
—
|
|
$
(0.01)
|
|
$
—
|
|
$
0.08
|
Basic Earnings Per
Share
|
$
1.76
|
|
$
0.33
|
|
$
5.01
|
|
$
3.22
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
1.75
|
|
$
0.34
|
|
$
4.98
|
|
$
3.12
|
Diluted Net (Loss)
Earnings from Discontinued Operations Per Share
|
$
—
|
|
$
(0.01)
|
|
$
—
|
|
$
0.08
|
Diluted Earnings Per
Share
|
$
1.75
|
|
$
0.33
|
|
$
4.98
|
|
$
3.20
|
Segment
Information (in thousands) (Quarterly data and Non-GAAP
unaudited):
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 30,
2022
|
|
October 1,
2021
|
|
September 30,
2022
|
|
October 1,
2021
|
Revenues from External
Customers:
|
|
|
|
|
|
|
|
Critical Mission
Solutions
|
$
1,387,702
|
|
$
1,264,102
|
|
$
5,233,629
|
|
$
5,087,052
|
People & Places
Solutions
|
2,238,994
|
|
2,049,091
|
|
8,569,900
|
|
8,378,179
|
Pass Through
Revenue
|
(647,265)
|
|
(544,435)
|
|
(2,318,732)
|
|
(2,381,785)
|
People & Places
Solutions Net Revenue
|
$
1,591,729
|
|
$
1,504,656
|
|
$
6,251,168
|
|
$
5,996,394
|
PA
Consulting
|
$ 254,352
|
|
$ 273,294
|
|
$
1,119,296
|
|
$ 627,401
|
Total Revenue
|
$
3,881,048
|
|
$
3,586,487
|
|
$
14,922,825
|
|
$
14,092,632
|
Net
Revenue
|
$
3,233,783
|
|
$
3,042,052
|
|
$
12,604,093
|
|
$
11,710,847
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 30,
2022
|
|
October 1,
2021
|
|
September 30,
2022
|
|
October 1,
2021
|
Segment Operating
Profit:
|
|
|
|
|
|
|
|
Critical Mission
Solutions
|
$
95,343
|
|
$ 115,028
|
|
$ 424,385
|
|
$ 447,161
|
People & Places
Solutions (1)
|
230,681
|
|
176,726
|
|
823,564
|
|
780,380
|
PA
Consulting
|
49,375
|
|
66,363
|
|
232,225
|
|
151,071
|
Total Segment Operating
Profit
|
375,399
|
|
358,117
|
|
1,480,174
|
|
1,378,612
|
Other Corporate
Expenses (2)
|
(79,961)
|
|
(101,932)
|
|
(364,440)
|
|
(340,129)
|
Restructuring, Other
and Recoveries (Charges) (3)
|
13,102
|
|
(4,669)
|
|
(197,884)
|
|
(350,394)
|
Total U.S. GAAP
Operating Profit
|
308,540
|
|
251,516
|
|
917,850
|
|
688,089
|
Total Other (Expense)
Income, Net (4)
|
(28,678)
|
|
(81,137)
|
|
(41,503)
|
|
7,513
|
Earnings from
Continuing Operations Before Taxes
|
$ 279,862
|
|
$ 170,379
|
|
$ 876,347
|
|
$ 695,602
|
(1)
|
Includes $19.5 million,
net, in charges related to a legal settlement for the three-month
period and year ended October 1, 2021.
|
(2)
|
Other corporate
expenses includes intangibles amortization of $51.7 million and
$46.5 million for the three-month periods ended September 30, 2022
and October 1, 2021, respectively, and $198.6 million and $149.8
million for the years ended September 30, 2022 and October 1, 2021,
respectively.
|
(3)
|
Included in the year
ended September 30, 2022 is $91.3 million pre-tax related to the
final settlement of the Legacy CH2M Matter, net of previously
recorded reserves, approximately $27 million in third party
recoveries was recorded as receivables reducing SG&A, and $78.3
million of real estate impairment charges. Included in the year
ended October 1, 2021 is $297.8 million of costs incurred in
connection with the investment in PA Consulting, in part classified
as compensation costs.
|
(4)
|
The year ended
September 30, 2022 included a $13.9 million gain related to a cost
method investment sold during the period and a gain of $8.7 million
related to lease terminations. The three-month period and year
ended October 1, 2021 included $(67.5) million and $34.7 million,
respectively, in fair value adjustments related to our investment
in Worley stock (net of Worley stock dividends) and certain foreign
currency revaluations relating to the ECR sale. The year ended
October 1, 2021 included $49.6 million in fair value
adjustments related to our investment in C3 stock, both of these
investments sold in fiscal 2021. The year ended October 1,
2021 also included $38.6 million related to impairment of our AWE
ML investment. Additionally, the increase in net interest expense
year over year is primarily due to the higher levels of debt
outstanding due to the funding of the StreetLight and BlackLynx
acquisitions and increased borrowings associated with the payment
of the Legacy CH2M Matter settlement in the current year, in
addition to higher interest rates.
|
Balance Sheet (in
thousands):
|
|
September 30,
2022
|
|
October 1,
2021
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,140,479
|
|
$
1,014,249
|
Receivables and
contract assets
|
3,405,381
|
|
3,101,418
|
Prepaid expenses and
other
|
176,134
|
|
176,228
|
Total current
assets
|
4,721,994
|
|
4,291,895
|
Property, Equipment and
Improvements, net
|
346,676
|
|
353,117
|
Other Noncurrent
Assets:
|
|
|
|
Goodwill
|
7,184,658
|
|
7,197,000
|
Intangibles,
net
|
1,394,052
|
|
1,565,758
|
Deferred income tax
assets
|
31,480
|
|
103,193
|
Operating lease
right-of-use assets
|
476,913
|
|
650,097
|
Miscellaneous
|
504,646
|
|
471,549
|
Total other noncurrent
assets
|
9,591,749
|
|
9,987,597
|
|
$
14,660,419
|
|
$
14,632,609
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
50,415
|
|
$
53,456
|
Accounts
payable
|
966,792
|
|
908,441
|
Accrued
liabilities
|
1,441,762
|
|
1,533,559
|
Operating lease
liability
|
150,171
|
|
172,414
|
Contract
liabilities
|
641,705
|
|
542,054
|
Total current
liabilities
|
3,250,845
|
|
3,209,924
|
Long-term
debt
|
3,357,256
|
|
2,839,933
|
Liabilities relating to
defined benefit pension and retirement plans
|
271,332
|
|
418,080
|
Deferred income tax
liabilities
|
269,077
|
|
214,380
|
Long-term operating
lease liability
|
607,447
|
|
758,358
|
Other deferred
liabilities
|
167,548
|
|
559,375
|
Commitments and
Contingencies
|
|
|
|
Redeemable
Noncontrolling Interests
|
632,522
|
|
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 -
127,393,378 shares and 128,892,540 shares as of September 30,
2022 and October 1, 2021, respectively
|
127,393
|
|
128,893
|
Additional paid-in
capital
|
2,682,009
|
|
2,590,012
|
Retained
earnings
|
4,225,784
|
|
4,015,578
|
Accumulated other
comprehensive loss
|
(975,130)
|
|
(794,442)
|
Total Jacobs
stockholders' equity
|
6,060,056
|
|
5,940,041
|
Noncontrolling
interests
|
44,336
|
|
34,796
|
Total Group
stockholders' equity
|
6,104,392
|
|
5,974,837
|
|
$
14,660,419
|
|
$
14,632,609
|
Cash Flows (in
thousands) (Quarterly data unaudited)
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 30,
2022
|
|
October 1,
2021
|
|
September 30,
2022
|
|
October 1,
2021
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net earnings
attributable to the Group
|
$
241,048
|
|
$
69,353
|
|
$
715,412
|
|
$
430,829
|
Adjustments to
reconcile net earnings to net cash flows provided by
operations:
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
Property, equipment
and improvements
|
24,533
|
|
26,540
|
|
102,454
|
|
101,024
|
Intangible
assets
|
51,713
|
|
46,468
|
|
198,602
|
|
149,776
|
Gain on sale of
ECR business
|
—
|
|
—
|
|
—
|
|
(15,608)
|
Loss (Gain) on
investment in equity securities
|
—
|
|
80,820
|
|
(13,862)
|
|
(71,325)
|
Stock based
compensation
|
11,678
|
|
14,702
|
|
53,383
|
|
56,221
|
Equity in earnings of
operating ventures, net of return on capital
distributions
|
4,069
|
|
7,680
|
|
18,291
|
|
10,941
|
(Gain) loss on
disposals of assets, net
|
82
|
|
254
|
|
(4,680)
|
|
1,003
|
Impairment of equity
method investment and other long term assets
|
3,707
|
|
502
|
|
78,292
|
|
40,640
|
Loss on pension
and retiree medical plan changes
|
123
|
|
2,783
|
|
123
|
|
2,783
|
Deferred income
taxes
|
49,702
|
|
75,204
|
|
111,846
|
|
113,623
|
Changes in assets and
liabilities, excluding the effects of businesses
acquired:
|
|
|
|
|
|
|
|
Receivables and
contract assets, net of contract liabilities
|
(153,340)
|
|
10,162
|
|
(267,947)
|
|
242,154
|
Prepaid expenses and
other current assets
|
(28,957)
|
|
(40,402)
|
|
6
|
|
6,800
|
Miscellaneous other
assets
|
(5,388)
|
|
8,186
|
|
113,850
|
|
116,097
|
Accounts
payable
|
32,980
|
|
(14,766)
|
|
87,402
|
|
(165,502)
|
Income taxes
payable
|
4,428
|
|
(40,100)
|
|
(70,258)
|
|
20,961
|
Accrued
liabilities
|
41,146
|
|
(32,472)
|
|
(552,036)
|
|
(252,305)
|
Other deferred
liabilities
|
862
|
|
(18,930)
|
|
(73,697)
|
|
(63,915)
|
Other, net
|
(846)
|
|
6,720
|
|
(22,472)
|
|
2,079
|
Net cash provided by
operating activities
|
277,540
|
|
202,704
|
|
474,709
|
|
726,276
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Additions to property
and equipment
|
(47,562)
|
|
(27,144)
|
|
(127,615)
|
|
(92,814)
|
Disposals of property
and equipment and other assets
|
106
|
|
6
|
|
9,392
|
|
474
|
Capital contributions
to equity investees, net of return of capital
distributions
|
269
|
|
(823)
|
|
3,025
|
|
(5,016)
|
Acquisitions of
businesses, net of cash acquired
|
—
|
|
—
|
|
(437,083)
|
|
(1,741,062)
|
Disposals of
investment in equity securities
|
—
|
|
369,294
|
|
13,862
|
|
421,315
|
Payments related to
sales of businesses
|
—
|
|
—
|
|
—
|
|
36,360
|
Net cash (used for)
provided by investing activities
|
(47,187)
|
|
341,333
|
|
(538,419)
|
|
(1,380,743)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Net (repayments of)
proceeds from borrowings
|
(80,176)
|
|
(203,414)
|
|
718,975
|
|
1,220,440
|
Debt issuance
costs
|
—
|
|
—
|
|
—
|
|
(2,747)
|
Proceeds from
issuances of common stock
|
10,047
|
|
8,362
|
|
51,034
|
|
38,077
|
Common stock
repurchases
|
(31,217)
|
|
(249,999)
|
|
(281,926)
|
|
(274,948)
|
Taxes paid on vested
restricted stock
|
(13)
|
|
(71)
|
|
(28,587)
|
|
(25,867)
|
Cash dividends to
shareholders
|
(29,360)
|
|
(27,387)
|
|
(115,948)
|
|
(107,188)
|
Net dividends
associated with noncontrolling interests
|
(10,879)
|
|
(8,701)
|
|
(26,982)
|
|
(48,784)
|
Repurchase of
redeemable noncontrolling interests
|
—
|
|
—
|
|
(46,074)
|
|
—
|
Proceeds from
issuances of redeemable noncontrolling interests
|
4
|
|
—
|
|
49,742
|
|
—
|
Net cash (used for)
provided by financing activities
|
(141,594)
|
|
(481,210)
|
|
320,234
|
|
798,983
|
Effect of Exchange Rate
Changes
|
(48,973)
|
|
(14,983)
|
|
(128,892)
|
|
19,635
|
Net Increase in Cash
and Cash Equivalents and Restricted Cash
|
39,786
|
|
47,844
|
|
127,632
|
|
164,151
|
Cash and Cash
Equivalents, including Restricted Cash, at the Beginning of the
Period
|
1,114,421
|
|
978,731
|
|
1,026,575
|
|
862,424
|
Cash and Cash
Equivalents, including Restricted Cash, at the End of the
Period
|
$ 1,154,207
|
|
$ 1,026,575
|
|
$ 1,154,207
|
|
$ 1,026,575
|
See the accompanying
Notes to Consolidated Financial Statements.
|
Backlog (in
millions):
|
Unaudited
|
September 30,
2022
|
|
October 1,
2021
|
Critical Mission
Solutions
|
$
10,561
|
|
$
10,589
|
People & Places
Solutions
|
17,032
|
|
15,738
|
PA
Consulting
|
269
|
|
304
|
Total
|
$
27,862
|
|
$
26,631
|
Non-GAAP Financial Measures and Operating
Metrics:
In this press release, the Company has included certain non-GAAP
financial measures as defined in Regulation G promulgated under the
Securities Exchange Act of 1934, as amended. The non-GAAP financial
measures included in this press release are net revenue, adjusted
net earnings from continuing operations, adjusted EPS from
continuing operations, adjusted EBITDA, adjusted EBITDA outlook,
adjusted EPS outlook, expected foreign currency translation to
impact on fiscal year 2023 revenue, adjusted EBITDA and adjusted
EPS, free cash flow, and adjusted effective tax rate.
Net revenue is calculated excluding pass through revenue of the
Company's People & Places Solutions segment from the Company's
revenue from continuing operations.
Adjusted net earnings from continuing operations and adjusted
EPS from continuing operations are calculated by (i) excluding
recoveries, costs and other charges associated with restructuring
activities implemented in connection with the acquisitions of CH2M,
John Wood Group nuclear business, Buffalo Group, BlackLynx,
StreetLight, the strategic investment in PA Consulting, the sale of
the ECR business and other related cost reduction initiatives,
which included involuntary terminations, costs associated with
co-locating offices of acquired companies, separating physical
locations of ECR and continuing operations, professional services
and personnel costs, amounts relating to certain commitments and
contingencies relating to discontinued operations of the CH2M
business, including the final settlement charges relating to the
Legacy CH2M Matter, net of previously recorded reserves; (ii)
excluding the costs and other charges associated with our Focus
2023 transformation initiatives, which included costs and charges
associated with the re-scaling and repurposing of physical office
space, employee separations, contractual termination fees and
related expenses (the amounts referred in (i) and (ii) are
collectively referred to as the "Restructuring, transaction costs
and other (recoveries)" or "Restructuring, transaction costs and
other charges"); (iii) excluding transaction costs and other
charges incurred in connection with the acquisitions of Buffalo
Group, BlackLynx and StreetLight and the strategic investment in PA
Consulting, including advisor fees, change in control payments, and
the impact of the quarterly adjustment to the estimated future
payout of contingent consideration to the sellers in connection
with certain acquisitions; certain consideration amounts for PA
Consulting that were required to be treated as post-completion
compensation expense given retention related requirements
applicable to the distribution of such funds to PA Consulting
employees, and impacts resulting from the non-cash purchase
accounting adjustment related to the investment in PA Consulting to
reflect a change in the preliminary purchase price allocation for
the redeemable non-controlling interests, certain equity based
compensation expenses associated with PA Consulting's benefit
programs; and similar transaction costs and expenses (collectively
referred to as "transaction costs"); (iv) adding back amortization
of intangible assets; (v) the removal of fair value adjustments and
dividend income related to the Company's investments in Worley and
C3 stock and certain foreign currency revaluations relating to ECR
sale proceeds; (vi) excluding charges resulting from the
revaluation of certain deferred tax assets/liabilities in
connection with tax rate increases in the United Kingdom during fiscal 2021; (vii)
charges associated with the impairment of our AWE ML investment;
(viii) charges to interest expense associated with one-time deal
related bank fees; (ix) certain non-routine income tax adjustments
for the purposes of calculating the Company's annual non-GAAP
effective tax rate to facilitate a more meaningful evaluation of
the Company's current operating performance and comparisons to the
Company's operating performance in other periods; and (x) other
income tax adjustments associated with the pre-tax income
adjustments above. Adjustments to derive adjusted net earnings from
continuing operations and adjusted EPS from continuing operations
are calculated on an after-tax basis.
Free cash flow is calculated using the reported statement of
cash flows, provided from operations less additions to property and
equipment.
Adjusted EBITDA is calculated by adding income tax expense,
depreciation expense and adjusted interest expense, and deducting
interest income from adjusted net earnings from continuing
operations.
Adjusted interest expense excludes one-time fees related on our
debt facilities that are included in our interest expense under
GAAP.
Cash conversion is the ratio of cash flow from operations to
GAAP net earnings from continuing operations.
Certain percentage changes are quantified on a constant currency
basis, which provides information assuming that foreign currency
exchange rates have not changed between the prior and current
periods. For purposes of constant currency calculations, we use the
prior period average exchange rates as applied to the current
period adjusted amounts. The constant currency impact on the fourth
quarter and fiscal year 2022 adjusted EPS from continuing
operations is calculated by applying the FX rates from the prior
period to operating profit and utilizing our adjusted income tax
rate and fully diluted share count. The constant currency impact on
the fourth quarter and fiscal year 2022 adjusted EBITDA results is
calculated by applying the FX rates from the prior period to
operating profit.
We believe that the measures listed above are useful to
management, investors and other users of our financial information
in evaluating the Company's operating results and understanding the
Company's operating trends by excluding or adding back the effects
of the items described above and below, the inclusion or exclusion
of which can obscure underlying trends. Additionally, management
uses such measures in its own evaluation of the Company's
performance, particularly when comparing performance to past
periods, and believes these measures are useful for investors
because they facilitate a comparison of our financial results from
period to period.
This press release also contains certain operating metrics which
management believes are useful in evaluating the Company's
performance. We regularly monitor these operating metrics to
evaluate our business, identify trends affecting our business, and
make strategic decisions. Revenue Backlog is the total dollar
amount of revenues we expect to record in the future as a result of
performing work under contracts that have been awarded to us.
The Company provides non-GAAP measures to supplement U.S. GAAP
measures, as they provide additional insight into the Company's
financial results. However, non-GAAP measures have limitations as
analytical tools and should not be considered in isolation and are
not in accordance with, or a substitute for, U.S. GAAP measures. In
addition, other companies may define non-GAAP measures differently,
which limits the ability of investors to compare non-GAAP measures
of the Company to those used by our peer companies.
The following tables reconcile the components and values of U.S.
GAAP net earnings and EPS from continuing operations to the
corresponding "adjusted" amount and revenue from continuing
operations to net revenue. For the comparable periods presented
below, such adjustments consist of amounts incurred in connection
with the items described above. Amounts are shown in thousands,
except for per-share data (note: earnings per share amounts may not
add across due to rounding). Reconciliation of adjusted EPS and
adjusted EBITDA outlook for fiscal 2023, under either FX rate
scenario, to the most directly comparable GAAP measure is not
available without unreasonable efforts because the Company cannot
predict with sufficient certainty all the components required to
provide such reconciliation. See footnote 3 on page 3 for
additional information.
U.S. GAAP
Reconciliation for the fourth quarter of fiscal 2022 and
2021
|
|
Three Months
Ended
|
|
September 30,
2022
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring, Transaction and Other Charges
|
|
Other Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$ 3,881,048
|
|
$
—
|
|
$
—
|
|
$ 3,881,048
|
Pass through
revenue
|
—
|
|
—
|
|
(647,265)
|
|
(647,265)
|
Net revenue
|
3,881,048
|
|
—
|
|
(647,265)
|
|
3,233,783
|
Direct cost of
contracts
|
(3,045,367)
|
|
1,630
|
|
647,265
|
|
(2,396,472)
|
Gross profit
|
835,681
|
|
1,630
|
|
—
|
|
837,311
|
Selling, general and
administrative expenses
|
(527,141)
|
|
(14,732)
|
|
51,713
|
|
(490,160)
|
Operating
Profit
|
308,540
|
|
(13,102)
|
|
51,713
|
|
347,151
|
Total other expense,
net
|
(28,678)
|
|
(1,810)
|
|
—
|
|
(30,488)
|
Earnings from
Continuing Operations Before Taxes
|
279,862
|
|
(14,912)
|
|
51,713
|
|
316,663
|
Income Tax (Expense)
Benefit for Continuing Operations
|
(39,358)
|
|
(26,347)
|
|
2,251
|
|
(63,454)
|
Net Earnings of the
Group from Continuing Operations
|
240,504
|
|
(41,259)
|
|
53,964
|
|
253,209
|
Net Earnings
Attributable to Noncontrolling Interests from Continuing
Operations
|
(8,502)
|
|
—
|
|
—
|
|
(8,502)
|
Net (Earnings) Loss
Attributable to Redeemable Noncontrolling interests
|
(7,339)
|
|
(1,087)
|
|
(5,221)
|
|
(13,647)
|
Net Earnings
attributable to Jacobs from Continuing Operations
|
224,663
|
|
(42,346)
|
|
48,743
|
|
231,060
|
Net Earnings
attributable to Discontinued Operations
|
544
|
|
—
|
|
—
|
|
544
|
Net Earnings
attributable to Jacobs
|
$
225,207
|
|
$ (42,346)
|
|
$ 48,743
|
|
$
231,604
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
1.75
|
|
$
(0.33)
|
|
$
0.38
|
|
$
1.80
|
Diluted Net (Loss)
Earnings from Discontinued Operations Per Share
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
Diluted Earnings Per
Share
|
$
1.75
|
|
$
(0.33)
|
|
$
0.38
|
|
$
1.80
|
Operating Profit
Margin
|
7.9 %
|
|
|
|
|
|
10.7 %
|
(1)
|
Includes charges
associated with various restructuring, transaction and other
related activity costs associated with Company transformation 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 $647.3 million, (b)
the removal of amortization of intangible assets of $51.7 million,
(c) applicable redeemable noncontrolling interests impacts for the
above adjustment items and (d) income tax expense adjustments for
the above pre-tax adjustment items.
|
|
Three Months
Ended
|
|
October 1,
2021
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring, Transaction and Other Charges
|
|
Other Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$ 3,586,487
|
|
$
—
|
|
$
—
|
|
$ 3,586,487
|
Pass through
revenue
|
—
|
|
—
|
|
(544,435)
|
|
(544,435)
|
Net revenue
|
3,586,487
|
|
—
|
|
(544,435)
|
|
3,042,052
|
Direct cost of
contracts
|
(2,758,723)
|
|
(274)
|
|
544,435
|
|
(2,214,562)
|
Gross profit
|
827,764
|
|
(274)
|
|
—
|
|
827,490
|
Selling, general and
administrative expenses
|
(576,248)
|
|
4,943
|
|
46,467
|
|
(524,838)
|
Operating
Profit
|
251,516
|
|
4,669
|
|
46,467
|
|
302,652
|
Total other (expense)
income, net
|
(81,137)
|
|
(323)
|
|
67,515
|
|
(13,945)
|
Earnings from
Continuing Operations Before Taxes
|
170,379
|
|
4,346
|
|
113,982
|
|
288,707
|
Income Tax Expense for
Continuing Operations
|
(99,344)
|
|
36,127
|
|
5,958
|
|
(57,259)
|
Net Earnings of the
Group from Continuing Operations
|
71,035
|
|
40,473
|
|
119,940
|
|
231,448
|
Net Earnings
Attributable to Noncontrolling Interests from Continuing
Operations
|
(9,847)
|
|
—
|
|
—
|
|
(9,847)
|
Net (Earnings) Loss
Attributable to Redeemable Noncontrolling Interests
|
(16,362)
|
|
8,234
|
|
(6,326)
|
|
(14,454)
|
Net Earnings from
Continuing Operations attributable to Jacobs
|
44,826
|
|
48,707
|
|
113,614
|
|
207,147
|
Net Loss attributable
to Discontinued Operations
|
(1,682)
|
|
—
|
|
—
|
|
(1,682)
|
Net Earnings
attributable to Jacobs
|
$ 43,144
|
|
$
48,707
|
|
$
113,614
|
|
$
205,465
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
0.34
|
|
$
0.37
|
|
$
0.86
|
|
$
1.58
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$ (0.01)
|
|
$
—
|
|
$
—
|
|
$ (0.01)
|
Diluted Earnings Per
Share
|
$
0.33
|
|
$
0.37
|
|
$
0.86
|
|
$
1.56
|
Operating Profit
Margin
|
7.0 %
|
|
|
|
|
|
9.9 %
|
(1)
|
Includes charges
associated with various restructuring, transaction and other
related activity costs associated with Company transformation 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 $544.4 million, (b)
the removal of amortization of intangible assets of $46.5 million,
(c) the removal of $(67.5) million in fair value gains and (losses)
related to our investment in Worley stock and certain foreign
currency revaluations relating to ECR sale, (d) the removal of
$(1.7) million 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.
|
U.S. GAAP
Reconciliation for fiscal years 2022 and 2021
|
|
For the Year
Ended
|
|
September 30,
2022
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring, Transaction and Other Charges
|
|
Other Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$ 14,922,825
|
|
$
—
|
|
$
—
|
|
$ 14,922,825
|
Pass through
revenue
|
—
|
|
—
|
|
(2,318,732)
|
|
(2,318,732)
|
Net revenue
|
14,922,825
|
|
—
|
|
(2,318,732)
|
|
12,604,093
|
Direct cost of
contracts
|
(11,595,785)
|
|
1,633
|
|
2,318,732
|
|
(9,275,420)
|
Gross profit
|
3,327,040
|
|
1,633
|
|
—
|
|
3,328,673
|
Selling, general and
administrative expenses
|
(2,409,190)
|
|
196,251
|
|
198,602
|
|
(2,014,337)
|
Operating
Profit
|
917,850
|
|
197,884
|
|
198,602
|
|
1,314,336
|
Total other (expense)
income, net
|
(41,503)
|
|
(12,492)
|
|
5
|
|
(53,990)
|
Earnings from
Continuing Operations Before Taxes
|
876,347
|
|
185,392
|
|
198,607
|
|
1,260,346
|
Income Tax Expense for
Continuing Operations
|
(160,903)
|
|
(65,888)
|
|
(41,442)
|
|
(268,233)
|
Net Earnings of the
Group from Continuing Operations
|
715,444
|
|
119,504
|
|
157,165
|
|
992,113
|
Net Earnings
Attributable to Noncontrolling Interests from Continuing
Operations
|
(36,788)
|
|
—
|
|
—
|
|
(36,788)
|
Net Earnings
Attributable to Redeemable Noncontrolling interests
|
(34,585)
|
|
(1,511)
|
|
(22,065)
|
|
(58,161)
|
Net Earnings
attributable to Jacobs from Continuing Operations
|
644,071
|
|
117,993
|
|
135,100
|
|
897,164
|
Net Loss attributable
to Discontinued Operations
|
(32)
|
|
—
|
|
—
|
|
(32)
|
Net Earnings
attributable to Jacobs
|
$
644,039
|
|
$ 117,993
|
|
$
135,100
|
|
$
897,132
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
4.98
|
|
$
0.91
|
|
$
1.04
|
|
$
6.93
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
Diluted Earnings Per
Share
|
$
4.98
|
|
$
0.91
|
|
$
1.04
|
|
$
6.93
|
Operating Profit
Margin
|
6.2 %
|
|
|
|
|
|
10.4 %
|
(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 pre-tax related to the final settlement of the Legacy CH2M
Matter, net of previously recorded reserves, approximately $27
million in third party recoveries was recorded as receivables
reducing SG&A, and $78.3 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 $2.3 billion, (b)
the removal of amortization of intangible assets of $198.6 million,
(c) applicable redeemable noncontrolling interests impacts for the
above adjustment items and (d) income tax expense adjustments for
the above pre-tax adjustment items.
|
|
For the Year
Ended
|
|
October 1,
2021
|
Unaudited
|
U.S.
GAAP
|
|
Effects of
Restructuring, Transaction and Other Charges
|
|
Other Adjustments
(2)
|
|
Adjusted
|
Revenues
|
$ 14,092,632
|
|
$
—
|
|
$
—
|
|
$
14,092,632
|
Pass through
revenue
|
—
|
|
—
|
|
(2,381,785)
|
|
(2,381,785)
|
Net revenue
|
14,092,632
|
|
—
|
|
(2,381,785)
|
|
11,710,847
|
Direct cost of
contracts
|
(11,048,860)
|
|
9
|
|
2,381,785
|
|
(8,667,066)
|
Gross profit
|
3,043,772
|
|
9
|
|
—
|
|
3,043,781
|
Selling, general and
administrative expenses
|
(2,355,683)
|
|
350,385
|
|
149,749
|
|
(1,855,549)
|
Operating
Profit
|
688,089
|
|
350,394
|
|
149,749
|
|
1,188,232
|
Total other expense,
net
|
7,513
|
|
42,549
|
|
(84,477)
|
|
(34,415)
|
Earnings from
Continuing Operations Before Taxes
|
695,602
|
|
392,943
|
|
65,272
|
|
1,153,817
|
Income Tax Expense for
Continuing Operations
|
(274,781)
|
|
6,729
|
|
16,144
|
|
(251,908)
|
Net Earnings of the
Group from Continuing Operations
|
420,821
|
|
399,672
|
|
81,416
|
|
901,909
|
Net Earnings
Attributable to Noncontrolling Interests from Continuing
Operations
|
(39,213)
|
|
—
|
|
—
|
|
(39,213)
|
Net Loss (Earnings)
Attributable to Redeemable Noncontrolling Interests
|
85,414
|
|
(95,246)
|
|
(27,307)
|
|
(37,139)
|
Net Earnings
attributable to Jacobs from Continuing Operations
|
467,022
|
|
304,426
|
|
54,109
|
|
825,557
|
Net Earnings
attributable to Discontinued Operations
|
10,008
|
|
|
|
—
|
|
10,008
|
Net Earnings
attributable to Jacobs
|
$
477,030
|
|
$ 304,426
|
|
$ 54,109
|
|
$ 835,565
|
Preferred Redeemable
Noncontrolling interests redemption value adjustment
|
(57,307)
|
|
57,307
|
|
$
—
|
|
—
|
Net earnings from
continuing operations
allocated to common
stock for EPS calculation
|
$
409,715
|
|
$ 361,733
|
|
$ 54,109
|
|
$ 825,557
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
3.12
|
|
$
2.76
|
|
$
0.41
|
|
$
6.29
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
0.08
|
|
$
—
|
|
$
—
|
|
$
0.08
|
Diluted Earnings Per
Share
|
$
3.20
|
|
$
2.76
|
|
$
0.41
|
|
$
6.37
|
Operating Profit
Margin
|
4.9 %
|
|
|
|
|
|
10.1 %
|
(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 AWE ML, along with pre-tax $297.8
million in PA Consulting deal related costs and applicable
redeemable noncontrolling interests impacts for the above
adjustment items. Also includes $(57.3) million or $(0.44) per
share in EPS numerator adjustments relating to the PA preference
shares redemption value, which does not affect net
earnings.
|
(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 $2.4 billion, (b)
the removal of amortization of intangible assets of $149.8 million,
(c) the removal of $34.7 million in fair value gains and (losses)
related to our investment in Worley stock and certain foreign
currency revaluations relating to ECR sale, (d) the removal of the
fair value gains and (losses) of the Company's investment in C3 of
$49.6 million, (e) the removal of $29.1 million additional income
tax expense attributable to tax rate increases in the UK during
2021, (f) associated noncontrolling interest impacts for the above
adjustment items and (g) income tax expense adjustments for the
above pre-tax adjustment items.
|
Reconciliation of
Adjusted EBITDA (in thousands):
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
September 30,
2022
|
|
October 1,
2021
|
|
September 30,
2022
|
|
October 1,
2021
|
Adj Net earnings from
Continuing Operations
|
$
231,060
|
|
$
207,147
|
|
$
897,164
|
|
$
825,557
|
Adj. Income Tax Expense for
Continuing Operations
|
(63,454)
|
|
(57,259)
|
|
(268,233)
|
|
(251,908)
|
Adj. Net earnings from
Continuing Operations attributable to Jacobs before income
taxes
|
294,514
|
|
264,406
|
|
1,165,397
|
|
1,077,465
|
Depreciation expense
|
24,533
|
|
26,540
|
|
102,454
|
|
101,024
|
Interest income
|
(1,565)
|
|
(770)
|
|
(4,489)
|
|
(3,503)
|
Adj.
Interest expense (1)
|
32,695
|
|
19,926
|
|
100,246
|
|
68,714
|
Adjusted
EBITDA
|
$
350,177
|
|
$
310,102
|
|
$ 1,363,608
|
|
$ 1,243,700
|
(1) Year
ended October 1, 2021 has been adjusted to exclude one-time PA
Consulting deal related finance costs of $4.0
million.
|
Reconciliation of
Free Cash Flow (in thousands):
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
September 30,
2022
|
|
October 1,
2021
|
|
September 30,
2022
|
|
October 1,
2021
|
Net cash provided
by operating activities
|
$
277,540
|
|
$
202,704
|
|
$
474,709
|
|
$
726,276
|
Additions to property
and equipment
|
(47,562)
|
|
(27,144)
|
|
(127,615)
|
|
(92,814)
|
Free cash
flow
|
$
229,978
|
|
$
175,560
|
|
$
347,094
|
|
$
633,462
|
Reconciliation
from GAAP to non-GAAP constant currency Net
Revenue
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(in
thousands)
|
September 30,
2022
|
|
October 1,
2021
|
|
%
Change
|
|
September 30,
2022
|
|
October 1,
2021
|
|
%
Change
|
Total Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue
|
$ 3,233,783
|
|
$ 3,042,052
|
|
6.3 %
|
|
$ 12,604,093
|
|
$ 11,710,847
|
|
7.6 %
|
Exchange rate
effect
|
143,931
|
|
|
|
|
|
292,727
|
|
|
|
|
Constant currency Net
Revenue
|
$ 3,377,714
|
|
|
|
11.0 %
|
|
$ 12,896,820
|
|
|
|
10.1 %
|
Reconciliation
from non-GAAP Adjusted EPS from Continuing Operations to non-GAAP
constant currency Adjusted EPS from Continuing
Operations
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
September 30,
2022
|
|
October 1,
2021
|
|
%
Change
|
|
September 30,
2022
|
|
October 1,
2021
|
|
%
Change
|
Total Adjusted EPS
from Continuing Operations (1)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from
Continuing Operations
|
$
1.80
|
|
$
1.58
|
|
13.9 %
|
|
$
6.93
|
|
$
6.29
|
|
10.2 %
|
Exchange rate
effect
|
0.07
|
|
|
|
|
|
0.19
|
|
|
|
|
Constant currency
Adjusted EPS from Continuing Operations
|
$
1.87
|
|
|
|
18.4 %
|
|
$
7.12
|
|
|
|
13.2 %
|
Reconciliation
from GAAP to non-GAAP constant currency Adjusted
EBITDA
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(in
thousands)
|
September 30,
2022
|
|
October 1,
2021
|
|
%
Change
|
|
September 30,
2022
|
|
October 1,
2021
|
|
%
Change
|
Total Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
350,177
|
|
$
310,102
|
|
12.9 %
|
|
$ 1,363,608
|
|
$ 1,243,700
|
|
9.6 %
|
Exchange rate
effect
|
11,627
|
|
|
|
|
|
30,357
|
|
|
|
|
Constant currency
Adjusted EBITDA
|
$
361,804
|
|
|
|
16.7 %
|
|
$ 1,393,965
|
|
|
|
12.1 %
|
Reconciliation
from GAAP to non-GAAP constant currency Backlog
|
(in
thousands)
|
September 30,
2022
|
|
October 1,
2021
|
|
%
Change
|
Total
Backlog
|
|
|
|
|
|
Backlog
|
$ 27,862,061
|
|
$ 26,629,753
|
|
4.6 %
|
Exchange rate
effect
|
|
|
(720,006)
|
|
|
Constant currency
Backlog
|
|
|
$ 25,909,747
|
|
7.5 %
|
Earnings Per Share
(in thousands):
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 30,
2022
|
|
October 1,
2021
|
|
September 30,
2022
|
|
October 1,
2021
|
Numerator for Basic
and Diluted EPS:
|
|
|
|
|
|
|
|
Net earnings
attributable to Jacobs from continuing operations
|
$ 224,663
|
|
$
44,826
|
|
$ 644,071
|
|
$ 467,022
|
Preferred Redeemable
Noncontrolling interests redemption value adjustment
|
—
|
|
—
|
|
—
|
|
(57,307)
|
Net earnings from
continuing operations allocated to common stock for EPS
calculation
|
$ 224,663
|
|
$
44,826
|
|
$ 644,071
|
|
$ 409,715
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from discontinued operations allocated to common stock for EPS
calculation
|
$
544
|
|
$
(1,682)
|
|
$
(32)
|
|
$
10,008
|
|
|
|
|
|
|
|
|
Net earnings
allocated to common stock for EPS calculation
|
$ 225,207
|
|
$
43,144
|
|
$ 644,039
|
|
$ 419,723
|
|
|
|
|
|
|
|
|
Denominator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
Weighted average basic
shares
|
127,759
|
|
130,162
|
|
128,665
|
|
130,194
|
Shares allocated to
participating securities
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
Shares used for
calculating basic EPS attributable to common stock
|
127,759
|
|
130,162
|
|
128,665
|
|
130,194
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
Stock compensation
plans
|
818
|
|
1,200
|
|
780
|
|
1,080
|
Shares used for
calculating diluted EPS attributable to common stock
|
128,577
|
|
131,362
|
|
129,445
|
|
131,274
|
|
|
|
|
|
|
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per Share
|
$
1.76
|
|
$
0.34
|
|
$
5.01
|
|
$
3.15
|
Basic Net Earnings
from Discontinued Operations Per Share
|
$
—
|
|
$
(0.01)
|
|
$
—
|
|
$
0.08
|
Basic Earnings Per
Share:
|
$
1.76
|
|
$
0.33
|
|
$
5.01
|
|
$
3.22
|
Diluted Net Earnings
from Continuing Operations Per Share
|
$
1.75
|
|
$
0.34
|
|
$
4.98
|
|
$
3.12
|
Diluted Net Earnings
from Discontinued Operations Per Share
|
$
—
|
|
$
(0.01)
|
|
$
—
|
|
$
0.08
|
Diluted Earnings Per
Share:
|
$
1.75
|
|
$
0.33
|
|
$
4.98
|
|
$
3.20
|
For additional information contact:
Investors:
Jonathan Doros
jonathan.doros@jacobs.com
Media:
Louise White, 469-724-0810
louise.white@jacobs.com
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SOURCE Jacobs