Press Release by
Jacobs Engineering Group Inc. (NYSE:JEC) today announced its financial results for the fourth quarter and fiscal year ended September 29, 2017 .
Fiscal 2017 Highlights:
- Q4 2017 net earnings of $94.1 million, or $0.78 per diluted share, and fiscal 2017 net earnings of $293.7 million, or $2.42 per diluted share;
- Q4 2017 adjusted net earnings of $118.3 million, or $0.98 per diluted share, and fiscal 2017 adjusted net earnings of $392.2 million, or $3.24 per diluted share;
- Positive improvement in sequential revenue performance for the quarter (up 5% over third quarter);
- Record high backlog of $19.8 billion at year end, up $1.2 billion vs. prior quarter and over $1.0 billion a year ago; total professional services backlog is up $581 million from year end 2016;
- Continued strong gross margin performance in Q4, contributing to 160 basis point annual improvement in 2017;
- Continued strong cash flow from operations of $194 million in the quarter, resulting in cash flow from operations totaling $575 millionfor the year; and
- On track to close CH2M acquisition mid-December 2017.
Commenting on the results for the fourth quarter and fiscal year 2017, Steve Demetriou, Jacobs Chairman and CEO, said, "I am pleased with the continued momentum and performance in our final quarter of fiscal 2017. Results included sequential revenue growth, a significant increase in backlog, and strong margin performance, all of which were aligned with our strategic initiatives outlined in December of last year. This organic growth momentum combined with the previously announced acquisition of CH2M will further strengthen our position as a global leader in providing innovative solutions to our clients. Importantly, we remain confident that we will close the CH2M transaction before the end of the year."
Kevin Berryman, Jacobs CFO, added, "Our fourth quarter and full year results demonstrate our success in our first year implementation of our strategic plan. Growth is gaining traction, margin has improved and cash flow has continued to be strong. We believe that our positive momentum will continue into fiscal year 2018, with expected adjusted EPS (excluding impacts from the CH2M acquisition) in the range of $3.25-$3.60."
Fourth Quarter Review
Jacobs reported net earnings of $94.1 million, or $0.78 per diluted share, on revenues of $2.7 billion for the fourth quarter ended September 29, 2017. This compares to net earnings of $29.6 million, or $0.24 per diluted share, on revenues of $2.6 billion for the fourth quarter ended September 30, 2016.
Jacobs' net earnings for the fourth fiscal quarter of 2017 included approximately $24.2 million, or $0.20 per diluted share, in after tax charges comprised of:
- $13.6 million, or $0.11 per diluted share, in after-tax Restructuring and other charges, driven primarily by an acceleration in restructuring activities associated with the Company's announced definitive agreement to acquire CH2M and, consistent with previous guidance, final charges recognized in connection with the 2015 Restructuring, which was completed this quarter; and
- after-tax charges of $10.6 million, or $0.09 per diluted share, in professional fees and related costs associated with the CH2M acquisition.
Jacobs' net earnings for fourth fiscal quarter of 2016 results included approximately $63 million, or $0.53 per diluted share, in after-tax restructuring and other charges including:
- after-tax charges of $36 million, or $0.30 per diluted share, in connection with the 2015 Restructuring;
- additional restructuring charges of $17 million, or $0.14 per diluted share, as a result of our strategic decision to exit our French operation and divest our French subsidiary; and
- a non-cash write-down on an equity investment of $10 million, or $0.09 per diluted share.
Excluding the items mentioned above, Jacobs' adjusted net earnings for the fourth quarter ended September 29, 2017 totaled $118.3 million, or $0.98 per diluted share, favorable in comparison to $93.1 million, or $0.77 per diluted share, for the corresponding period for 2016.
Our fourth quarter U.S. GAAP and adjusted results include one-time net tax and tax related benefit items of $8.0 million, or $0.07 per diluted share, for fourth quarter 2017, and $4.1 million, or $0.03 per diluted share, in net tax benefit and other items for fourth quarter fiscal 2016.
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