Successful Separation and Merger of CMS and
C&I, Now Trading as Amentum (NYSE: AMTM)
Backlog Grows by 23% y/y with TTM
Book-to-Bill Ratio of 1.35x
FY 2025 Guidance Highlights Favorable
Growth and Margin Expectations
DALLAS, Nov. 19,
2024 /PRNewswire/ -- Jacobs Solutions Inc.
(NYSE: J) today announced its financial results for the fiscal
fourth quarter and fiscal year ended September 27, 2024.
Q4 2024 Financial Highlights from Continuing
Operations:
- Revenue of $3.0 billion grew 4.4%
y/y; adjusted net revenue1 up 4.3% y/y
- Net income of $309 million, up
333.1% y/y; Adjusted EBITDA1 of $289 million, up 12.5% y/y
- EPS of $2.38, up 277.8% y/y;
adjusted EPS1 of $1.37, up
28.0% y/y
- Recorded $187 million in
mark-to-market gains on our investment in AMTM, increasing Q4 GAAP
net income
- Backlog of $21.8 billion, up
22.5% y/y; Q4 book-to-bill 1.67x (1.35x TTM)
Fiscal Year 2024 Highlights from Continuing
Operations:
- Revenue of $11.5 billion grew
6.0% y/y; adjusted net revenue1 up 5.1% y/y
- Net income of $613 million, up
61.6% y/y; Adjusted EBITDA1 of $1,059 million, up 8.9% y/y
- EPS of $4.79, up 57.0% y/y;
adjusted EPS1 of $5.28, up
15.8% y/y
- Cash conversion and reported free cash flow
conversion1 exceeded 100%
Jacobs' Chair and CEO Bob Pragada
commented, "We reached a critical milestone on our strategic shift
toward a simpler, higher-value, and higher-margin portfolio during
the quarter as we closed the separation transaction involving our
Critical Mission Solutions and Cyber & Intelligence businesses,
culminating with Amentum successfully listing on the NYSE under the
ticker AMTM. The separation, completed on September 27, marks a pivotal moment for Jacobs,
enabling us to operate as a more unified and focused company.
Demand in our end markets is strong, and we are seeing continued
momentum on driving higher gross profit across the business.
Heading into FY25, we expect positive trends across Water and
Environmental, Critical Infrastructure and Life Sciences and
Advanced Manufacturing. With our simplified structure, global
delivery model and ongoing operating efficiencies, we are
well-positioned to drive profitable growth in fiscal year 2025 and
beyond."
Jacobs' CFO Venk Nathamuni added, "Our GAAP net income margin
and adjusted EBITDA margin showed strong sequential growth in Q4,
and we plan to build on this strong performance in FY25.
Furthermore, our balance sheet remains in excellent condition
following the separation transaction. This financial strength
positions us well to continue investing in organic growth while
repurchasing shares and growing our dividend over the
long-term. In FY24, we returned $545
million in the form of dividends and share repurchases,
demonstrating our commitment to returning a significant portion of
free cash flow to shareholders."
Financial Outlook2
The Company's outlook for fiscal 2025 is for adjusted net
revenue to grow mid-to-high single digits over fiscal 2024,
adjusted EBITDA margin to range from 13.8-14.0%, adjusted EPS to
range from $5.80-$6.20 and for reported free cash flow (FCF)
conversion to exceed 100% of net income.
Update on Separation Transaction
On September 27, Jacobs announced
the completion of the spin-off of its Critical Mission Solutions
and Cyber & Intelligence government services businesses (the
"Separated Business") and merger of the Separated Business with
Amentum Parent Holdings LLC, forming an independent, publicly
traded company called Amentum Holdings, Inc. (NYSE: AMTM)
("Amentum") (the "Separation Transaction"). The financial results
of the Separated Business are reflected in Jacobs' discontinued
operations.
|
1See
Non-GAAP Financial Measures and Operating Metrics, and GAAP
Reconciliations at the end of the press release for additional
detail.
|
|
2Reconciliation of fiscal 2025 adjusted
EBITDA, adjusted EPS and expectations for adjusted net
revenue growth and reported FCF conversion 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 2025.
|
Fourth Quarter Review (in thousands, except for
per share and tax rate data)
|
Fiscal Q4
2024
|
Fiscal Q4
2023
|
Change
|
|
Revenue
|
$2,960,150
|
$2,834,280
|
$125,870
|
|
Adjusted Net
Revenue1
|
$2,118,930
|
$2,032,292
|
$86,638
|
|
GAAP Net Earnings
from Continuing Operations
|
$309,299
|
$71,407
|
$237,892
|
|
GAAP Earnings Per
Diluted Share (EPS) from
Continuing Operations
|
$2.38
|
$0.63
|
$1.75
|
|
Adjusted Net
Earnings from Continuing
Operations1,3
|
$170,480
|
$135,755
|
$34,725
|
|
Adjusted EPS from
Continuing Operations1,3
|
$1.37
|
$1.07
|
$0.30
|
|
U.S. GAAP effective
tax rate from Continuing
Operations
|
18.9 %
|
35.5 %
|
(16.6) %
|
|
Adjusted effective
tax rate from Continuing
Operations1,3
|
27.5 %
|
29.1 %
|
(1.6) %
|
|
|
3Beginning
with our fiscal first quarter in 2024, the Company has revised its
presentation of adjusted net earnings from continuing operations
and adjusted EPS from continuing operations to no longer apply an
adjustment which previously resulted in the application of the
expected annual effective tax rate to all quarterly periods. Prior
comparable periods are also being presented on this
basis.
|
The Company's adjusted net earnings from continuing operations
and adjusted EPS from continuing operations for the fourth quarter
of fiscal 2024 and fiscal 2023 exclude certain adjustments that are
further described in the section entitled "Non-GAAP Financial
Measures" at the end of this release. For a reconciliation of
Revenue to Adjusted Net Revenue, see "Segment Information"
below.
Fiscal 2024 Review (in thousands, except for per share
and tax rate data)
|
Fiscal
2024
|
Fiscal
2023
|
Change
|
|
Revenue
|
$11,500,941
|
$10,851,420
|
$649,521
|
|
Adjusted Net
Revenue1
|
$8,259,301
|
$7,861,867
|
$397,434
|
|
GAAP Net Earnings
from Continuing Operations
|
$612,804
|
$379,125
|
$233,679
|
|
GAAP Earnings Per
Diluted Share (EPS) from
Continuing Operations
|
$4.79
|
$3.05
|
$1.74
|
|
Adjusted Net
Earnings from Continuing
Operations1,3
|
$665,076
|
$580,544
|
$84,532
|
|
Adjusted EPS from
Continuing Operations1,3
|
$5.28
|
$4.56
|
$0.72
|
|
U.S. GAAP effective
tax rate from Continuing
Operations
|
16.9 %
|
19.5 %
|
(2.6) %
|
|
Adjusted effective
tax rate from Continuing
Operations1,3
|
19.6 %
|
20.3 %
|
(0.7) %
|
The Company's adjusted net earnings from continuing operations
and adjusted EPS from continuing operations for fiscal 2024 and
fiscal 2023 exclude certain adjustments that are further described
in the section entitled "Non-GAAP Financial Measures" at the end of
this release. For a reconciliation of Revenue to Adjusted Net
Revenue, see "Segment Information" below.
Jacobs is hosting a conference call at 10:00 A.M. ET on Tuesday November 19, 2024,
which will be webcast live at www.jacobs.com.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements within the meaning of the United States
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," "target," "goal" and similar words are intended to identify
forward-looking statements. Examples of forward-looking statements
include, but are not limited to, statements we make concerning our
expectations as to our future growth, prospects, financial outlook
and business strategy, including our expectations for our fiscal
year 2025 adjusted EBITDA and adjusted EPS, and reported free cash
flow conversion, as well as our expectations for our effective tax
rates. 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:
- 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 and stock market volatility, instability
in the banking industry, labor shortages, or the impact of a
possible recession or economic downturn or changes to monetary or
fiscal policies or priorities in the U.S. and the other countries
where we do business on our results, prospects and
opportunities;
- competition from existing and future competitors in our target
markets, as well as the possible reduction in demand for certain of
our product solutions and services, including delays in the timing
of the award of projects or reduction in funding, or the
abandonment of ongoing or anticipated projects due to the financial
condition of our clients and suppliers or due to governmental
budget constraints or changes to governmental budgetary priorities,
or the inability of our clients to meet their payment obligations
in a timely manner or at all;
- our ability to fully execute on our corporate strategy,
including (i) uncertainties as to the impact of the separation of
the Separated Business (as defined above) on our business, such as
a possible impact on our credit profile or our ability to operate
as a separate public-company without the benefit of the resources
and capabilities divested as part of the Separated Business (as
defined above), the possibility that the transaction will not
result in the intended benefits to us or our shareholders, that we
will not realize the value expected to be derived from the
disposition of our retained stake in Amentum, or that we will incur
unexpected costs, charges or expenses related to the provision of
transition services in connection with the separation, (ii) the
impact of acquisitions, strategic alliances, divestitures, and
other strategic events resulting from evolving business strategies,
including on our ability to maintain our culture and retain key
personnel, customers or suppliers, or 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, and (iii) our ability to invest in the tools needed to
implement our strategy;
- financial market risks that may affect us, including by
affecting our access to capital, the cost of such capital and/or
our funding obligations under defined benefit pension and
postretirement plans;
- legislative changes, including potential changes to the amounts
provided for, under the Infrastructure Investment and Jobs Act, as
well as other legislation related to governmental spending, and
changes in U.S. or foreign tax laws, statutes, rules, regulations
or ordinances, including the impact of, and changes to tariffs or
trade policies, that may adversely impact our future financial
positions or results of operations;
- increased geopolitical uncertainty and risks, including policy
risks and potential civil unrest, relating to the outcome of
elections across our key markets and elevated geopolitical tension
and conflicts, including the Russia-Ukraine and Israel-Hamas conflicts and the
escalating tensions in the Middle
East, among others; and
- the impact of any 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, as well as the inability of governments
in certain of the countries in which we operate to effectively
mitigate the financial or other impacts of any future pandemics or
infectious disease outbreaks 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 27, 2024,
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.
Regulation FD
We use any of the following to comply with our disclosure
obligations under Regulation FD: press releases, SEC filings,
public conference calls, or our website. We routinely post
important information on our website at www.jacobs.com, including
information that may be deemed to be material. We encourage
investors and others interested in the company to monitor these
distribution channels for material disclosures.
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 $12 billion
in annual revenue and a talent force of almost 45,000, 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, Instagram, X and Facebook.
|
Financial
Highlights:
|
|
|
Results of
Operations (in thousands, except per-share
data):
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
Unaudited
|
September
27, 2024
|
|
September
29, 2023
|
|
September
27, 2024
|
|
September
29, 2023
|
|
Revenues
|
$ 2,960,150
|
|
$ 2,834,280
|
|
$
11,500,941
|
|
$
10,851,420
|
|
Direct cost of
contracts
|
(2,225,029)
|
|
(2,128,933)
|
|
(8,668,185)
|
|
(8,140,560)
|
|
Gross profit
|
735,121
|
|
705,347
|
|
2,832,756
|
|
2,710,860
|
|
Selling, general and
administrative expenses
|
(538,916)
|
|
(536,989)
|
|
(2,140,320)
|
|
(2,034,376)
|
|
Operating
Profit
|
196,205
|
|
168,358
|
|
692,436
|
|
676,484
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
8,514
|
|
7,023
|
|
34,454
|
|
24,975
|
|
Interest
expense
|
(35,686)
|
|
(43,640)
|
|
(169,058)
|
|
(168,085)
|
|
Miscellaneous income
(expense), net
|
224,573
|
|
350
|
|
219,454
|
|
(12,399)
|
|
Total other income
(expense), net
|
197,401
|
|
(36,267)
|
|
84,850
|
|
(155,509)
|
|
Earnings from
Continuing Operations Before Taxes
|
393,606
|
|
132,091
|
|
777,286
|
|
520,975
|
|
Income Tax Expense from
Continuing Operations
|
(74,467)
|
|
(46,899)
|
|
(131,493)
|
|
(101,336)
|
|
Net Earnings of the
Group from Continuing Operations
|
319,139
|
|
85,192
|
|
645,793
|
|
419,639
|
|
Net Earnings of the
Group from Discontinued
Operations
|
19,618
|
|
81,802
|
|
206,850
|
|
300,017
|
|
Net Earnings of the
Group
|
338,757
|
|
166,994
|
|
852,643
|
|
719,656
|
|
Net Earnings
Attributable to Noncontrolling Interests
from Continuing Operations
|
(4,953)
|
|
(5,397)
|
|
(17,990)
|
|
(18,900)
|
|
Net Earnings
Attributable to Redeemable
Noncontrolling interests
|
(4,887)
|
|
(8,388)
|
|
(14,999)
|
|
(21,614)
|
|
Net Earnings
Attributable to Jacobs from Continuing
Operations
|
309,299
|
|
71,407
|
|
612,804
|
|
379,125
|
|
Net Earnings
Attributable to Noncontrolling Interests
from Discontinued Operations
|
(3,480)
|
|
(3,830)
|
|
(13,561)
|
|
(13,365)
|
|
Net Earnings
Attributable to Jacobs from Discontinued
Operations
|
16,138
|
|
77,972
|
|
193,289
|
|
286,652
|
|
Net Earnings
Attributable to Jacobs
|
$
325,437
|
|
$
149,379
|
|
$
806,093
|
|
$
665,777
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations Per
Share
|
$
2.39
|
|
$
0.63
|
|
$
4.81
|
|
$
3.06
|
|
Basic Net Loss from
Discontinued Operations Per
Share
|
$
0.13
|
|
$
0.62
|
|
$
1.54
|
|
$
2.26
|
|
Basic Earnings Per
Share
|
$
2.52
|
|
$
1.25
|
|
$
6.35
|
|
$
5.32
|
|
|
|
|
|
|
|
|
|
Diluted Net Earnings
from Continuing Operations Per
Share
|
$
2.38
|
|
$
0.63
|
|
$
4.79
|
|
$
3.05
|
|
Diluted Net Loss from
Discontinued Operations Per
Share
|
$
0.13
|
|
$
0.61
|
|
$
1.54
|
|
$
2.25
|
|
Diluted Earnings Per
Share
|
$
2.51
|
|
$
1.24
|
|
$
6.32
|
|
$
5.30
|
|
Segment
Information (in thousands):
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
Unaudited
|
September
27, 2024
|
|
September
29, 2023
|
|
September
27, 2024
|
|
September
29, 2023
|
|
Revenues from External
Customers:
|
|
|
|
|
|
|
|
|
Infrastructure &
Advanced Facilities
|
$ 2,670,703
|
|
$ 2,546,040
|
|
$
10,323,255
|
|
$
9,693,276
|
|
Pass Through Revenue
(1)
|
(841,220)
|
|
(801,988)
|
|
(3,241,640)
|
|
(2,989,553)
|
|
Infrastructure &
Advanced Facilities Adjusted Net
Revenue (1)
|
$ 1,829,483
|
|
$ 1,744,052
|
|
$ 7,081,615
|
|
$
6,703,723
|
|
PA
Consulting
|
289,447
|
|
288,240
|
|
1,177,686
|
|
1,158,144
|
|
Total Revenue
|
$ 2,960,150
|
|
$ 2,834,280
|
|
$
11,500,941
|
|
$
10,851,420
|
|
Adjusted
Net Revenue (1)
|
$ 2,118,930
|
|
$ 2,032,292
|
|
$ 8,259,301
|
|
$
7,861,867
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September
27, 2024
|
|
September
29, 2023
|
|
September
27, 2024
|
|
September
29, 2023
|
|
Segment Operating
Profit:
|
|
|
|
|
|
|
|
|
Infrastructure &
Advanced Facilities (2)
|
$
177,857
|
|
$
162,063
|
|
$
632,276
|
|
$
585,392
|
|
PA
Consulting
|
61,737
|
|
59,482
|
|
239,250
|
|
237,003
|
|
Total Segment Operating
Profit
|
239,594
|
|
221,545
|
|
871,526
|
|
822,395
|
|
Restructuring,
Transaction and Other Charges (3)
|
(43,389)
|
|
(53,187)
|
|
(179,090)
|
|
(145,911)
|
|
Total U.S. GAAP
Operating Profit
|
196,205
|
|
168,358
|
|
692,436
|
|
676,484
|
|
Total Other Income
(Expense), Net (4)
|
197,400
|
|
(36,267)
|
|
84,850
|
|
(155,509)
|
|
Earnings Before Taxes
from Continuing Operations
|
$
393,605
|
|
$
132,091
|
|
$
777,286
|
|
$
520,975
|
|
|
|
(1)
|
Pass-through revenues
for the prior periods presented include certain minor adjustments
to properly reflect amounts that had not been previously included
and to conform with the fiscal 2023 amounts presented.
|
|
(2)
|
Operating profit for
Infrastructure & Advanced Facilities includes intangibles
amortization of $37.4 million and $38.9 million for the three-month
periods ended September 27, 2024 and September 29, 2023,
respectively, and $152.7 million and $147.2 million for the years
ended September 27, 2024 and September 29, 2023, respectively.
Additionally, fiscal 2023 included approximately $15.0 million in
net favorable impacts from cost reductions compared to the prior
year period, which was associated mainly with net favorable impacts
during first quarter from changes in employee benefit programs of
$41.0 million offset by approximately $26.0 million in higher spend
in company technology platforms and other personnel and corporate
cost increases.
|
|
(3)
|
The three months and
year ended September 27, 2024 include $43.2 million and $163.4
million, respectively, in restructuring and other charges
(primarily professional services and employee separation costs)
related to the Separation Transaction. The three months and year
ended September 29, 2023 include $47.9 million and $61.1 million,
respectively, in restructuring and other charges (primarily
professional services and employee separation costs) related to the
Separation Transaction, $(2.9) million and $14.3 million,
respectively, in restructuring and other charges relating to the
Company's investment in PA Consulting (primarily employee
separation costs) and $9.3 million and $48.2 million, respectively,
in charges associated mainly with real estate
impairments.
|
|
(4)
|
The three months and
year ended September 27, 2024 included $186.9 million in
mark-to-market gains associated with our investment in Amentum
stock recorded in connection with the Separation
Transaction.
|
|
Balance Sheet (in
thousands):
|
|
|
September 27,
2024
|
|
September 29,
2023
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
1,144,795
|
|
$
770,853
|
|
Receivables and
contract assets
|
2,845,452
|
|
2,430,941
|
|
Prepaid expenses and
other
|
155,865
|
|
140,726
|
|
Investment in equity
securities
|
749,468
|
|
—
|
|
Current assets held
for spin
|
—
|
|
1,347,833
|
|
Total current
assets
|
4,895,580
|
|
4,690,353
|
|
Property, Equipment and
Improvements, net
|
315,630
|
|
279,749
|
|
Other Noncurrent
Assets:
|
|
|
|
|
Goodwill
|
4,788,181
|
|
4,644,087
|
|
Intangibles,
net
|
874,894
|
|
950,784
|
|
Deferred income tax
assets
|
195,406
|
|
52,956
|
|
Operating lease
right-of-use assets
|
303,856
|
|
324,857
|
|
Miscellaneous
|
385,458
|
|
418,791
|
|
Noncurrent assets held
for spin
|
—
|
|
3,255,532
|
|
Total other noncurrent
assets
|
6,547,795
|
|
9,647,007
|
|
$
11,759,005
|
|
$
14,617,109
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Short-term
debt
|
$
875,760
|
|
$
61,430
|
|
Accounts
payable
|
1,029,140
|
|
922,355
|
|
Accrued
liabilities
|
1,087,764
|
|
975,192
|
|
Operating lease
liability
|
119,988
|
|
126,247
|
|
Contract
liabilities
|
967,089
|
|
709,249
|
|
Current liabilities
held for spin
|
—
|
|
628,088
|
|
Total current
liabilities
|
4,079,741
|
|
3,422,561
|
|
Long-term
debt
|
1,348,594
|
|
2,813,471
|
|
Liabilities relating to
defined benefit pension and retirement plans
|
298,221
|
|
247,277
|
|
Deferred income tax
liabilities
|
116,655
|
|
121,356
|
|
Long-term operating
lease liability
|
407,826
|
|
466,108
|
|
Other deferred
liabilities
|
120,483
|
|
116,828
|
|
Noncurrent liabilities
held for spin
|
—
|
|
196,447
|
|
Redeemable
Noncontrolling Interests
|
820,182
|
|
632,979
|
|
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 - 124,253,511 shares and 125,976,998 shares as
of
September 27, 2024 and September 29, 2023,
respectively
|
124,084
|
|
125,977
|
|
Additional paid-in
capital
|
2,758,064
|
|
2,735,325
|
|
Retained
earnings
|
2,366,769
|
|
4,542,872
|
|
Accumulated other
comprehensive loss
|
(699,450)
|
|
(857,954)
|
|
Total Jacobs
stockholders' equity
|
4,549,467
|
|
6,546,220
|
|
Noncontrolling
interests
|
17,836
|
|
53,862
|
|
Total Group
stockholders' equity
|
4,567,303
|
|
6,600,082
|
|
$
11,759,005
|
|
$
14,617,109
|
|
Cash Flows (in
thousands) (Quarterly data unaudited)
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
Net earnings
attributable to the Group
|
$
338,757
|
|
$
166,996
|
|
$
852,643
|
|
$
719,656
|
|
Adjustments to
reconcile net earnings to net cash flows provided by (used for)
operations:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
Property, equipment
and improvements
|
25,061
|
|
26,476
|
|
99,232
|
|
103,346
|
|
Intangible
assets
|
53,215
|
|
51,674
|
|
209,507
|
|
203,906
|
|
Gain on
investment in equity securities
|
(186,931)
|
|
—
|
|
(186,931)
|
|
—
|
|
Stock based
compensation
|
20,023
|
|
18,429
|
|
74,193
|
|
74,337
|
|
Equity in earnings of
operating ventures, net of return on capital
distributions
|
(2,525)
|
|
2,639
|
|
(16,079)
|
|
(324)
|
|
(Gain) loss on
disposals of assets, net
|
(4,233)
|
|
7,100
|
|
(3,200)
|
|
7,690
|
|
Impairment of equity
method investment and other long-term assets
|
3,000
|
|
10,032
|
|
3,000
|
|
48,163
|
|
Deferred income
taxes
|
(108,832)
|
|
(81,759)
|
|
(224,935)
|
|
(76,815)
|
|
Changes in assets and
liabilities, excluding the effects of businesses
acquired:
|
|
|
|
|
|
|
|
|
Receivables and
contract assets, net of contract liabilities
|
36,147
|
|
(30,586)
|
|
59,587
|
|
(8,395)
|
|
Prepaid expenses and
other current assets
|
(43,295)
|
|
(26,752)
|
|
11,217
|
|
(33,996)
|
|
Miscellaneous other
assets
|
35,993
|
|
21,832
|
|
104,659
|
|
92,050
|
|
Accounts
payable
|
(35,751)
|
|
57,052
|
|
81,469
|
|
166,194
|
|
Income taxes
payable
|
101,120
|
|
19,128
|
|
94,094
|
|
9,408
|
|
Accrued
liabilities
|
(37,808)
|
|
(3,569)
|
|
(138,491)
|
|
(279,136)
|
|
Other deferred
liabilities
|
(16,196)
|
|
(5,537)
|
|
6,047
|
|
(49,957)
|
|
Other, net
|
18,787
|
|
(13,792)
|
|
28,661
|
|
(1,364)
|
|
Net cash provided by
operating activities
|
196,532
|
|
219,363
|
|
1,054,673
|
|
974,763
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Additions to property
and equipment
|
(38,342)
|
|
(39,246)
|
|
(121,114)
|
|
(137,486)
|
|
Disposals of property
and equipment and other assets
|
6,029
|
|
7
|
|
6,187
|
|
1,544
|
|
Capital contributions
to equity investees, net of return of capital
distributions
|
77
|
|
—
|
|
1,737
|
|
7,964
|
|
Acquisitions of
businesses, net of cash acquired
|
—
|
|
—
|
|
(14,000)
|
|
(17,685)
|
|
Net cash used for
investing activities
|
(32,236)
|
|
(39,239)
|
|
(127,190)
|
|
(145,663)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
long-term borrowings
|
2,382,120
|
|
1,530,973
|
|
4,606,697
|
|
3,860,468
|
|
Repayments of
long-term borrowings
|
(1,175,932)
|
|
(1,815,276)
|
|
(3,370,355)
|
|
(4,486,679)
|
|
Proceeds from
short-term borrowings
|
4,239
|
|
9,658
|
|
5,345
|
|
13,011
|
|
Repayments of
short-term borrowings
|
(834,879)
|
|
(3,353)
|
|
(866,761)
|
|
(3,353)
|
|
Debt issuance
costs
|
(32,725)
|
|
(5,281)
|
|
(34,331)
|
|
(17,177)
|
|
Proceeds from
issuances of common stock
|
12,089
|
|
9,731
|
|
47,503
|
|
47,782
|
|
Common stock
repurchases
|
(56,286)
|
|
(145)
|
|
(402,668)
|
|
(265,714)
|
|
Taxes paid on vested
restricted stock
|
(8,331)
|
|
(489)
|
|
(41,720)
|
|
(24,249)
|
|
Cash dividends to
shareholders
|
(36,340)
|
|
(32,748)
|
|
(142,779)
|
|
(128,420)
|
|
Net dividends
associated with noncontrolling interests
|
(4,162)
|
|
(5,869)
|
|
(21,678)
|
|
(23,156)
|
|
Repurchase of
redeemable noncontrolling interests
|
(13,556)
|
|
(2,514)
|
|
(55,344)
|
|
(92,939)
|
|
Proceeds from
issuances of redeemable noncontrolling interests
|
—
|
|
(755)
|
|
19,761
|
|
34,016
|
|
Cash impact from
distribution of SpinCo Business
|
(495,307)
|
|
—
|
|
(495,307)
|
|
—
|
|
Net cash used for
financing activities
|
(259,070)
|
|
(316,068)
|
|
(751,637)
|
|
(1,086,410)
|
|
Effect of Exchange Rate
Changes
|
29,425
|
|
(28,761)
|
|
41,640
|
|
32,548
|
|
Net Increase (Decrease)
in Cash and Cash Equivalents and Restricted Cash
|
(65,349)
|
|
(164,705)
|
|
217,486
|
|
(224,762)
|
|
Cash and Cash
Equivalents, including Restricted Cash, at the Beginning of the
Period
|
1,212,280
|
|
1,094,150
|
|
929,445
|
|
1,154,207
|
|
Cash and Cash
Equivalents, including Restricted Cash, at the End of the
Period
|
$
1,146,931
|
|
$
929,445
|
|
$
1,146,931
|
|
$
929,445
|
|
Less Cash and Cash
Equivalents included in Assets held for spin
|
$
—
|
|
$
(155,728)
|
|
$
—
|
|
$
(155,728)
|
|
Cash and Cash
Equivalents of Continuing Operations at the End of the
Period
|
$
1,146,931
|
|
$
773,717
|
|
$
1,146,931
|
|
$
773,717
|
|
Backlog (in
millions):
|
|
|
Unaudited
|
September 27,
2024
|
|
September 29,
2023
|
|
Infrastructure &
Advanced Facilities
|
$
21,472
|
|
$
17,526
|
|
PA
Consulting
|
378
|
|
311
|
|
Total
|
$
21,850
|
|
$
17,837
|
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. These non-GAAP
measures are described below.
As a result of the Separation Transaction, substantially all CMS
and C&I related assets and liabilities were separated on
September 27, 2024. As such, the
financial results of the Separated Business are reflected as
discontinued operations for all periods presented and therefore
excluded from the non-GAAP measures described below.
Adjusted net revenue is calculated by adjusting revenue from
continuing operations to exclude amounts we bill to clients on
projects where we are procuring subcontract labor or third-party
materials and equipment on behalf of the client (referred to as
"pass throughs"). These amounts are considered pass throughs
because we receive no or only a minimal mark-up associated with the
billed amounts. In 2023, we amended our name and convention for
revenue, excluding pass-through costs from "net revenue" to
"adjusted net revenue." This name change is intended to make the
non-GAAP nature of this measure more prominent and does not impact
measurement.
IA&F and Jacobs adjusted operating profit, adjusted earnings
from continuing operations before taxes, adjusted income tax
expenses from continuing operations, adjusted net earnings from
continuing operations and adjusted EPS from continuing operations
are calculated by:
|
1.
|
Excluding items
collectively referred to as Restructuring, Transaction and Other
Charges, which include:
|
|
a.
|
costs and other charges
associated with our Focus 2023 transformation initiatives,
including activities associated with the re-scaling and repurposing
of physical office space, employee separations, contractual
termination fees and related expenses, referred to as "Focus 2023
Transformation, mainly real estate rescaling efforts";
|
|
b.
|
transaction costs and
other charges incurred in connection with mergers, acquisitions,
strategic investments and divestitures, including advisor fees,
change in control payments, and the impact of the quarterly
adjustment to the estimated performance based payout of contingent
consideration to certain sellers in connection with certain
acquisitions and similar transaction costs and expenses
(collectively referred to as "Transaction Costs");
|
|
c.
|
recoveries, costs and
other charges associated with restructuring activities and other
cost reduction initiatives implemented in connection with mergers,
acquisitions, strategic investments and divestitures, including the
separation of the CMS/C&I business, such as advisor fees,
involuntary terminations and related costs, costs associated with
co-locating offices of acquired companies, separating physical
locations of continuing operations, professional services and other
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; third
party recoveries recorded as receivables reducing SG&A,
involuntary terminations of management and employees and related
transition and legal costs (clauses (a) – (c) collectively referred
to as "Restructuring, integration, separation and other
charges").
|
|
|
|
|
2.
|
Excluding items
collectively referred to as "Other adjustments",1 which
include:
|
|
a.
|
adding back intangible
assets amortization and impairment charges;
|
|
b.
|
impact of certain
subsidiary level contingent equity-based agreements in connection
with the transaction structure of our PA Consulting
investment;
|
|
c.
|
impacts related to tax
rate increases in the UK in a prior period;
|
|
d.
|
Pretax mark-to-market
gains associated with the Company's investment in Amentum stock
recorded in connection with the Separation Transaction;
and
|
|
e.
|
impacts resulting from
the EPS numerator adjustment relating to the redeemable
noncontrolling interests preference share repurchase and reissuance
activities.
|
|
|
|
|
|
|
1 Beginning
with our first fiscal quarter in 2024, the Company has revised its
presentation of adjusted net earnings from continuing operations
and adjusted EPS to no longer reflect adjustments to align these
non-GAAP measures to our annual effective tax rates.
|
We eliminate the impact of "Restructuring, integration,
separation and other charges" because we do not consider these to
be indicative of ongoing operating performance. Actions taken by
the Company to enhance efficiencies are subject to significant
fluctuations from period to period. The Company's management
believes the exclusion of the amounts relating to the above-listed
items improves the period-to-period comparability and analysis of
the underlying financial performance of the business.
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 as net cash provided by operating
activities from continuing operations as reported on the statement
of cash flows less additions to property and equipment.
Adjusted EBITDA is calculated by adding income tax expense,
depreciation expense and interest expense (in each case, to the
extent attributable to continuing operations) to, and deducting
interest income attributable to continuing operations from,
adjusted net earnings from continuing operations.
I&AF Adjusted Operating Margin is a ratio of I&AF
adjusted operating profit for the segment to the segment's adjusted
net revenue. For a reconciliation of revenue to adjusted net
revenue, see "Segment Information".
Jacobs Adjusted Operating Margin is a ratio of adjusted
operating profit for the Company to the Company's adjusted net
revenue. For a reconciliation of revenue to adjusted net revenue,
see "Segment Information".
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 financial and operating
metrics which management believes are useful in evaluating the
Company's performance. Backlog represents the revenue or gross
profit, as applicable, we expect to realize for work to be
completed by our consolidated subsidiaries and our proportionate
share of work to be performed by unconsolidated joint ventures.
Gross margin in backlog refers to the ratio of gross profit in
backlog to gross revenue in backlog. For more information on
how we determine our backlog, see our Backlog Information in our
most recent annual report filed with the Securities and Exchange
Commission. Adjusted EBITDA margin refers to a ratio of adjusted
EBITDA to adjusted net revenue. Cash conversion refers to a ratio
of cash flow from operations to GAAP net earnings from continuing
operations. Reported FCF conversion refers to a ratio of FCF to
GAAP net earnings from continuing operations. Book-to-bill ratio is
an operational measure representing the ratio of change in backlog
since the prior reporting period plus reported revenue for the
reporting period to the reported revenues for the same period. We
regularly monitor these operating metrics to evaluate our business,
identify trends affecting our business, and make strategic
decisions.
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 earnings from continuing operations before taxes, income taxes
from continuing operations, net earnings attributable to Jacobs
from continuing operations, Diluted Net Earnings from Continuing
Operations Per Share (which we refer to as EPS from continuing
operations), to the corresponding "adjusted" amount, net cash
provided by operating activities to reported free cash flow, and
revenue to adjusted 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 total due to rounding).
|
Reconciliation of
Earnings from Continuing Operations Before Taxes to Adjusted
Earnings from Continuing Operations Before Taxes (in
thousands):
|
|
|
Three Months
Ended
|
|
For the Years
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Earnings from
Continuing Operations Before
Taxes
|
$
393,606
|
|
$
132,091
|
|
$
777,286
|
|
$
520,975
|
|
Restructuring,
Transaction and Other
Charges (1):
|
|
|
|
|
|
|
|
|
Focus 2023
Transformation, mainly real estate
rescaling efforts
|
(10)
|
|
6,872
|
|
49
|
|
45,495
|
|
Transaction
costs
|
1,232
|
|
372
|
|
9,246
|
|
16,315
|
|
Restructuring,
integration and separation
charges
|
7,234
|
|
43,500
|
|
134,862
|
|
80,724
|
|
Other Adjustments
(2):
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
38,948
|
|
37,449
|
|
152,666
|
|
147,230
|
|
Other
|
(185,021)
|
|
(4,162)
|
|
(173,498)
|
|
980
|
|
Adjusted Earnings
from Continuing
Operations Before Taxes
|
$
255,989
|
|
$
216,122
|
|
$
900,611
|
|
$
811,719
|
|
|
(1) Includes pre-tax
charges primarily relating to the Separation Transaction for the
three months and years ended September 27, 2024 and September 29,
2023, respectively. Includes real estate impairment charges
associated with the Company's Focus 2023 Transformation program for
the three months and years ended September 27, 2024 and September
29, 2023, respectively, as well as charges associated with various
transaction costs and activity associated with Company
restructuring and integration programs.
|
|
(2) Includes pre-tax
charges for the removal of amortization of intangible assets for
the three months and years ended September 27, 2024 and September
29, 2023 and the impact of certain subsidiary level contingent
equity-based agreements in connection with the transaction
structure of our PA Consulting investment for the three months and
years ended September 27, 2024 and September 29, 2023. The three
months and year ended September 27, 2024 includes pretax
mark-to-market gains associated with the Company's investment in
Amentum stock recorded in connection with the Separation
Transaction of $186.9 million.
|
|
Reconciliation of
Income Tax Expense from Continuing Operations to Adjusted Income
Tax Expense from Continuing Operations (in
thousands):
|
|
|
Three Months
Ended
|
|
For the Years
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Income Tax Expense from
Continuing
Operations
|
$
(74,467)
|
|
$
(46,899)
|
|
$
(131,493)
|
|
$
(101,336)
|
|
Tax Effects of
Restructuring, Transaction
and Other Charges (1)
|
|
|
|
|
|
|
|
|
Focus 2023
Transformation, mainly real estate
rescaling efforts
|
2
|
|
(1,815)
|
|
(12)
|
|
(11,519)
|
|
Transaction
costs
|
(174)
|
|
136
|
|
(1,428)
|
|
(2,855)
|
|
Restructuring,
integration and separation
charges
|
14,565
|
|
(5,409)
|
|
(4,779)
|
|
(12,848)
|
|
Tax Effects of Other
Adjustments (2)
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
(10,362)
|
|
(8,842)
|
|
(39,073)
|
|
(34,737)
|
|
Other
|
(20)
|
|
(30)
|
|
(36)
|
|
(1,038)
|
|
Adjusted Income Tax
Expense from
Continuing Operations
|
$
(70,456)
|
|
$
(62,859)
|
|
$
(176,821)
|
|
$
(164,333)
|
|
|
(1) Includes income tax
impacts on restructuring activities primarily relating to the
Separation Transaction for the three months and years ended
September 27, 2024 and September 29, 2023, along with real estate
impairments associated with the Company's Focus 2023 Transformation
program for the three months and years ended September 29,
2023.
|
|
(2) Includes income tax
impacts on amortization of intangible assets and on certain
subsidiary level contingent equity-based agreements in connection
with the transaction structure of our PA Consulting investment for
the three months and years ended September 27, 2024 and September
29, 2023.
|
|
Reconciliation of
Net Earnings Attributable to Jacobs from Continuing Operations to
Adjusted Net Earnings Attributable to Jacobs from Continuing
Operations (in thousands):
|
|
|
Three Months
Ended
|
|
For the Years
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Net Earnings
Attributable to Jacobs from
Continuing Operations
|
$
309,299
|
|
$
71,407
|
|
$
612,804
|
|
$
379,125
|
|
After-tax effects of
Restructuring,
Transaction and Other Charges (1):
|
|
|
|
|
|
|
|
|
Focus 2023
Transformation, mainly real estate
rescaling efforts
|
(8)
|
|
4,958
|
|
36
|
|
33,876
|
|
Transaction
costs
|
845
|
|
113
|
|
6,606
|
|
11,309
|
|
Restructuring,
integration and separation
charges
|
22,077
|
|
38,602
|
|
128,155
|
|
63,774
|
|
After-tax effects of
Other Adjustments (2):
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
23,859
|
|
23,599
|
|
95,020
|
|
92,612
|
|
Other
|
(185,592)
|
|
(2,924)
|
|
(177,545)
|
|
(152)
|
|
Adjusted Net
Earnings Attributable to
Jacobs from Continuing Operations
|
$
170,480
|
|
$
135,755
|
|
$
665,076
|
|
$
580,544
|
|
|
(1) Includes after-tax
charges primarily relating to the Separation Transaction for the
three months and years ended September 27, 2024 and September 29,
2023. Includes non-cash real estate impairment charges associated
with the Company's Focus 2023 Transformation program and charges
associated with various transaction costs and activity associated
with the Company restructuring and integration programs for the
three months and years ended September 27, 2024 and September 29,
2023.
|
|
(2) Includes after-tax
and noncontrolling interest impacts from the amortization of
intangible assets and estimated tax impacts on certain subsidiary
level contingent equity-based agreements in connection with the
transaction structure of our PA Consulting investment for the three
months and years ended September 27, 2024 and September 29, 2023.
The three months and year ended September 27, 2024 include gains
associated with the Company's investment in Amentum stock recorded
in connection with the Separation Transaction of $186.9
million.
|
|
Reconciliation of
Diluted Net Earnings from Continuing Operations Per Share to
Adjusted Diluted Net Earnings from Continuing Operations Per
Share:
|
|
|
Three Months
Ended
|
|
For the Years
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Diluted Net Earnings
from Continuing
Operations Per Share
|
$
2.38
|
|
$
0.63
|
|
$
4.79
|
|
$
3.05
|
|
After-tax effects of
Restructuring,
Transaction and Other Charges (1):
|
|
|
|
|
|
|
|
|
Focus 2023
Transformation, mainly real estate
rescaling efforts
|
—
|
|
0.04
|
|
—
|
|
0.27
|
|
Transaction
costs
|
0.01
|
|
—
|
|
0.05
|
|
0.09
|
|
Restructuring,
integration and separation
charges
|
0.18
|
|
0.30
|
|
1.02
|
|
0.50
|
|
After-tax effects of
Other Adjustments (2):
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
0.19
|
|
0.19
|
|
0.75
|
|
0.73
|
|
Other
|
(1.39)
|
|
(0.09)
|
|
(1.33)
|
|
(0.07)
|
|
Adjusted Diluted Net
Earnings from
Continuing Operations Per Share
|
$
1.37
|
|
$
1.07
|
|
$
5.28
|
|
$
4.56
|
|
|
(1) Includes per-share
impact charges primarily relating to the Separation Transaction for
the three months and years ended September 27, 2024 and September
29, 2023. Includes non-cash real estate impairment charges
associated with the Company's Focus 2023 Transformation program and
charges associated with various transaction costs and activity
associated with the Company restructuring and integration programs
for the three months and years ended September 30, 2024 and
September 29, 2023.
|
|
(2) Includes per-share
impacts from the amortization of intangible assets and estimated
tax impacts on certain subsidiary level contingent equity-based
agreements in connection with the transaction structure of our PA
Consulting investment for the three months and years ended
September 27, 2024 and September 29, 2023. The three months and
year ended September 27, 2024 includes per-share impacts from gains
associated with the Company's investment in Amentum
stock.
|
|
Reconciliation of
Interest Expense from Continuing Operations to Adjusted Interest
Expense from Continuing Operations (in
thousands):
|
|
|
Three Months
Ended
|
|
For the Years
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Interest Expense
from Continuing
Operations
|
$
(35,686)
|
|
$
(43,640)
|
|
$ (169,058)
|
|
$ (168,085)
|
|
Restructuring,
Transaction and Other
Charges (1)
|
|
|
|
|
|
|
|
|
Restructuring,
integration and separation
charges
|
219
|
|
—
|
|
219
|
|
—
|
|
Adjusted Interest
Expense from
Continuing Operations
|
$
(35,467)
|
|
$
(43,640)
|
|
$ (168,839)
|
|
$ (168,085)
|
|
|
(1) Includes pre-tax
charges related to the Separation Transaction for the three months
and year ended September 27, 2024.
|
|
Reconciliation of
Net Earnings Attributable to Jacobs from Continuing Operations to
Adjusted EBITDA (in thousands):
|
|
|
Three Months
Ended
|
|
For the Years
Ended
|
|
September
27, 2024
|
|
September
29, 2023
|
|
September
27, 2024
|
|
September
29, 2023
|
|
Net Earnings
Attributable to Jacobs from Continuing Operations
|
$ 309,299
|
|
$
71,407
|
|
$ 612,804
|
|
$ 379,125
|
|
After-tax effects of
Restructuring, Transaction and Other
Charges
|
22,914
|
|
43,673
|
|
134,797
|
|
108,959
|
|
After-tax effects of
Other Adjustments
|
(161,733)
|
|
20,675
|
|
(82,525)
|
|
92,460
|
|
Adj. Net earnings from
Continuing Operations
|
170,480
|
|
135,755
|
|
665,076
|
|
580,544
|
|
Adj. Income Tax Expense
from Continuing Operations
|
70,456
|
|
62,859
|
|
176,821
|
|
164,333
|
|
Adj. Net earnings from
Continuing Operations attributable to
Jacobs before Income Taxes
|
240,936
|
|
198,614
|
|
841,897
|
|
744,877
|
|
Depreciation expense
|
21,053
|
|
21,657
|
|
82,987
|
|
84,271
|
|
Interest income
|
(8,514)
|
|
(7,023)
|
|
(34,454)
|
|
(24,975)
|
|
Adjusted Interest expense
|
35,467
|
|
43,640
|
|
168,839
|
|
168,085
|
|
Adjusted
EBITDA
|
$ 288,942
|
|
$ 256,888
|
|
$
1,059,269
|
|
$ 972,258
|
|
Reconciliation of
Free Cash Flow (in thousands):
|
|
|
Three Months
Ended
|
|
For the Years
Ended
|
|
September
27, 2024
|
|
September
29, 2023
|
|
September
27, 2024
|
|
September
29, 2023
|
|
Net cash provided by
operating activities
|
$ 196,532
|
|
$ 219,363
|
|
$
1,054,673
|
|
$ 974,763
|
|
Additions to property
and equipment
|
(38,342)
|
|
(39,246)
|
|
(121,114)
|
|
(137,486)
|
|
Free cash
flow
|
$ 158,190
|
|
$ 180,117
|
|
$ 933,559
|
|
$ 837,277
|
|
|
|
|
|
|
|
|
|
Net cash used for
investing activities
|
$ (32,236)
|
|
$ (39,239)
|
|
$
(127,190)
|
|
$
(145,663)
|
|
Net cash used for
financing activities
|
$
(259,070)
|
|
$
(316,068)
|
|
$
(751,637)
|
|
$
(1,086,410)
|
|
Earnings Per
Share (in thousands):
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Numerator for Basic
and Diluted EPS:
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Jacobs from continuing
operations
|
$
309,299
|
|
$
71,407
|
|
$
612,804
|
|
$
379,125
|
|
Preferred Redeemable
Noncontrolling interests
redemption value adjustment
|
(12,020)
|
|
8,340
|
|
(10,274)
|
|
8,340
|
|
Net earnings from
continuing operations
allocated to common stock for EPS calculation
|
$
297,279
|
|
$
79,747
|
|
$
602,530
|
|
$
387,465
|
|
|
|
|
|
|
|
|
|
Net earnings from
discontinued operations
allocated to common stock for EPS calculation
|
$
16,138
|
|
$
77,972
|
|
$
193,289
|
|
$
286,652
|
|
|
|
|
|
|
|
|
|
Net earnings
allocated to common stock for EPS
calculation
|
$
313,417
|
|
$
157,719
|
|
$
795,819
|
|
$
674,117
|
|
|
|
|
|
|
|
|
|
Denominator for
Basic and Diluted EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
calculating basic EPS attributable
to common stock
|
124,315
|
|
126,074
|
|
125,324
|
|
126,607
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Stock compensation
plans
|
569
|
|
791
|
|
557
|
|
607
|
|
Shares used for
calculating diluted EPS
attributable to common stock
|
124,884
|
|
126,865
|
|
125,881
|
|
127,214
|
|
|
|
|
|
|
|
|
|
Net Earnings Per
Share:
|
|
|
|
|
|
|
|
|
Basic Net Earnings
from Continuing Operations
Per Share
|
$
2.39
|
|
$
0.63
|
|
$
4.81
|
|
$
3.06
|
|
Basic Net Loss from
Discontinued Operations
Per Share
|
$
0.13
|
|
$
0.62
|
|
$
1.54
|
|
$
2.26
|
|
Basic Earnings Per
Share:
|
$
2.52
|
|
$
1.25
|
|
$
6.35
|
|
$
5.32
|
|
Diluted Net Earnings
from Continuing Operations
Per Share
|
$
2.38
|
|
$
0.63
|
|
$
4.79
|
|
$
3.05
|
|
Diluted Net Loss from
Discontinued Operations
Per Share
|
$
0.13
|
|
$
0.61
|
|
$
1.54
|
|
$
2.25
|
|
Diluted Earnings Per
Share:
|
$
2.51
|
|
$
1.24
|
|
$
6.32
|
|
$
5.30
|
|
|
Note: Earnings per
share amounts may not add due to rounding
|
For additional information contact:
Investors:
Bert Subin
JacobsIR@jacobs.com
Media:
Louise White
louise.white@jacobs.com
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SOURCE Jacobs