08/03/2021 | Press release | Distributed by Public on 08/03/2021 05:06
Fiscal Q3 2021
|
Fiscal Q3 2020
|
Change | |
Revenue | $3.6 billion | $3.3 billion | $0.3 billion |
Net Revenue | $3.0 billion | $2.7 billion | $0.3 billion |
GAAP Net Earnings from Continuing Operations | $165 million | $227 million | ($62 million) |
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations | $0.82 | $1.73 | ($0.91) |
Adjusted Net Earnings from Continuing Operations | $216 million | $165 million | $51 million |
Adjusted EPS from Continuing Operations | $1.64 | $1.26 | $0.38 |
Fiscal Q3 2021 | Fiscal Q3 2020 | |
GAAP Net Earnings from Continuing Operations and Diluted Earnings Per Share (EPS) |
$165 million ($0.82 per share)
|
$227 million ($1.73 per share)
|
An adjustment to add back after-tax restructuring, transaction costs and other charges ($7.6 million and $20.5 million for the fiscal 2021 and 2020 periods, respectively before income taxes). Also includes $(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.
|
$4 million ($0.47 per share)
|
$14 million ($0.11 per share)
|
Other adjustments are comprised mainly of:
(a) add-back of amortization of intangible assets of $49.6 million and $23.1 million in the 2021 and 2020 periods, respectively,
(b) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with Worley of $1.0 million in fiscal 2020,
(c) the removal of $38.7 million and $123.1 million in fair value adjustments related to our investment in Worley stock and certain foreign currency revaluations relating to the ECR sale in the 2021 and 2020 periods, respectively,
(d) the removal of the fair value adjustment for the Company's investment in C3.ai, Inc. ('C3') of $1.0 million in the 2021 period,
(e) the removal of $30.8 million in additional income tax expense attributable to tax rate increases in the UK during in 2021,
(f) associated noncontrolling interest impacts for the above adjustment items and
(g) income tax expense adjustments for the above pre-tax adjustment items.
|
$46 million ($0.35 per share)
|
$(76) million ($(0.58) per share)
|
Adjusted Net Earnings from Continuing Operations and Adjusted EPS from Continuing Operations |
$216 million ($1.64 per share)
|
$165 million ($1.26 per share)
|
For the Three Months Ended | For the Nine Months Ended | |||||||
Unaudited | July 2, 2021 | June 26, 2020 | July 2, 2021 | June 26, 2020 | ||||
Revenues | $ | 3,576,436 | $ | 3,260,057 | $ | 10,506,144 | $ | 10,047,286 |
Direct cost of contracts | (2,759,501) | (2,631,031) | (8,290,137) | (8,125,554) | ||||
Gross profit | 816,935 | 629,026 | 2,216,007 | 1,921,732 | ||||
Selling, general and administrative expenses | (553,189) | (434,650) | (1,779,435) | (1,408,232) | ||||
Operating Profit | 263,746 | 194,376 | 436,572 | 513,500 | ||||
Other Income (Expense): | ||||||||
Interest income | 1,001 | 1,249 | 2,733 | 3,180 | ||||
Interest expense | (20,011) | (18,193) | (52,788) | (48,163) | ||||
Miscellaneous income (expense), net | 38,658 | 126,249 | 138,705 | (87,470) | ||||
Total other income (expense), net | 19,648 | 109,305 | 88,650 | (132,453) | ||||
Earnings from Continuing Operations Before Taxes | 283,394 | 303,681 | 525,222 | 381,047 | ||||
Income Tax Expense from Continuing Operations | (109,186) | (67,674) | (175,437) | (75,041) | ||||
Net Earnings of the Group from Continuing Operations | 174,208 | 236,007 | 349,785 | 306,006 | ||||
Net Earnings of the Group from Discontinued Operations | 384 | 18,043 | 11,690 | 125,511 | ||||
Net Earnings of the Group | 174,592 | 254,050 | 361,475 | 431,517 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (9,182) | (9,121) | (29,366) | (21,662) | ||||
Net Loss Attributable to Redeemable Noncontrolling interests | 384 | - | 101,776 | - | ||||
Net Earnings Attributable to Jacobs from Continuing Operations | 165,410 | 226,886 | 422,195 | 284,344 | ||||
Net Earnings Attributable to Jacobs | $ | 165,794 | $ | 244,929 | $ | 433,885 | $ | 409,855 |
Net Earnings Per Share: | ||||||||
Basic Net Earnings from Continuing Operations Per Share | $ | 0.83 | $ | 1.74 | $ | 2.80 | $ | 2.15 |
Basic Net Earnings from Discontinued Operations Per Share | $ | - | $ | 0.14 | $ | 0.09 | $ | 0.95 |
Basic Earnings Per Share | $ | 0.83 | $ | 1.88 | $ | 2.89 | $ | 3.11 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 0.82 | $ | 1.73 | $ | 2.78 | $ | 2.13 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | - | $ | 0.14 | $ | 0.09 | $ | 0.94 |
Diluted Earnings Per Share | $ | 0.83 | $ | 1.87 | $ | 2.87 | $ | 3.08 |
Three Months Ended | Nine Months Ended | |||||||
Unaudited | July 2, 2021 | June 26, 2020 | July 2, 2021 | June 26, 2020 | ||||
Revenues from External Customers: | ||||||||
Critical Mission Solutions | $ | 1,218,089 | $ | 1,211,143 | $ | 3,822,949 | $ | 3,636,978 |
People & Places Solutions | 2,102,550 | 2,048,914 | 6,329,088 | 6,410,308 | ||||
Pass Through Revenue
|
(612,045) | (578,717) | (1,837,350) | (1,921,863) | ||||
People & Places Solutions Net Revenue | $ | 1,490,505 | $ | 1,470,197 | $ | 4,491,738 | $ | 4,488,445 |
PA Consulting | $ | 255,797 | $ | - | $ | 354,107 | $ | - |
Total Revenue | $ | 3,576,436 | $ | 3,260,057 | $ | 10,506,144 | $ | 10,047,286 |
Net Revenue | $ | 2,964,391 | $ | 2,681,340 | $ | 8,668,794 | $ | 8,125,423 |
Three Months Ended | Nine Months Ended | |||||||
July 2, 2021 | June 26, 2020 | July 2, 2021 | June 26, 2020 | |||||
Segment Operating Profit: | ||||||||
Critical Mission Solutions | $ | 108,131 | $ | 89,608 | $ | 332,133 | $ | 264,323 |
People & Places Solutions | 205,324 | 190,453 | 603,654 | 557,864 | ||||
PA Consulting | 56,791 | - | 84,708 | - | ||||
Total Segment Operating Profit | 370,246 | 280,061 | 1,020,495 | 822,187 | ||||
Other Corporate Expenses (1) | (104,532) | (65,213) | (238,198) | (193,148) | ||||
Restructuring, Transaction and Other Charges (2) | (1,968) | (20,472) | (345,725) | (115,539) | ||||
Total U.S. GAAP Operating Profit | 263,746 | 194,376 | 436,572 | 513,500 | ||||
Total Other Income (Expense), net (3) | 19,648 | 109,305 | 88,650 | (132,453) | ||||
Earnings from Continuing Operations Before Taxes | $ | 283,394 | $ | 303,681 | $ | 525,222 | $ | 381,047 |
(1) | Other corporate expenses also include intangibles amortization of $49.6 million and $23.1 million for the three months ended July 2, 2021 and June 26, 2020, respectively, and $103.3 million and $67.1 million for the nine months ended July 2, 2021 and June 26, 2020, respectively. |
(2) | Included in the three and nine months ended July 2, 2021 are $(2.8) million and $297.4 million, respectively, of costs incurred in connection with the investment in PA Consulting, in part classified as compensation costs. |
(3) | The three and nine months ended July 2, 2021 include $38.7 million and $102.2 million, respectively, in fair value adjustments related to our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale, $1.0 million and $49.6 million, respectively, in fair value adjustments related to our investment in C3 stock. The nine months ended July 2, 2021 also includes $(38.9) million related to impairment of our AWE Management Ltd. investment. The three and nine months ended June 26, 2020 include revenues under the Company's TSA with Worley of $1.0 million and $15.2 million, respectively, and $123.1 million and $(119.0) million, respectively, in fair value adjustments related to our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale. |
Unaudited | July 2, 2021 | October 2, 2020 | ||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $ | 966,146 | $ | 862,424 |
Receivables and contract assets | 3,188,950 | 3,167,310 | ||
Prepaid expenses and other | 137,072 | 162,355 | ||
Investment in equity securities | 450,113 | 347,510 | ||
Total current assets | 4,742,281 | 4,539,599 | ||
Property, Equipment and Improvements, net | 355,252 | 319,371 | ||
Other Noncurrent Assets: | ||||
Goodwill | 7,232,270 | 5,639,091 | ||
Intangibles, net | 1,635,221 | 658,340 | ||
Deferred income tax assets | 178,901 | 211,047 | ||
Operating lease right-of-use assets | 671,867 | 576,915 | ||
Miscellaneous | 393,492 | 409,990 | ||
Total other noncurrent assets | 10,111,751 | 7,495,383 | ||
$ | 15,209,284 | $ | 12,354,353 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current Liabilities: | ||||
Short-term debt | $ | 53,813 | $ | - |
Accounts payable | 923,265 | 1,061,754 | ||
Accrued liabilities | 1,525,987 | 1,249,883 | ||
Operating lease liability | 174,698 | 164,312 | ||
Contract liabilities | 565,457 | 465,648 | ||
Total current liabilities | 3,243,220 | 2,941,597 | ||
Long-term Debt | 3,067,745 | 1,676,941 | ||
Liabilities relating to defined benefit pension and retirement plans | 537,240 | 568,176 | ||
Deferred income tax liabilities | 204,262 | 3,366 | ||
Long-term operating lease liability | 792,602 | 735,202 | ||
Other deferred liabilities | 576,423 | 573,404 | ||
Commitments and Contingencies | ||||
Redeemable Noncontrolling interests | 601,175 | - | ||
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 - 130,293,392 shares and 129,747,783 shares as of July 2, 2021 and October 2, 2020, respectively
|
130,293 | 129,748 | ||
Additional paid-in capital | 2,646,851 | 2,598,446 | ||
Retained earnings | 4,246,173 | 4,020,575 | ||
Accumulated other comprehensive loss | (870,411) | (933,057) | ||
Total Jacobs stockholders' equity | 6,152,906 | 5,815,712 | ||
Noncontrolling interests | 33,711 | 39,955 | ||
Total Group stockholders' equity | 6,186,617 | 5,855,667 | ||
$ | 15,209,284 | $ | 12,354,353 |
For the Three Months Ended | For the Nine Months Ended | |||||||
Unaudited | July 2, 2021 | June 26, 2020 | July 2, 2021 | June 26, 2020 | ||||
Cash Flows from Operating Activities: | ||||||||
Net earnings attributable to the Group | $ | 174,592 | $ | 254,050 | $ | 361,475 | $ | 431,517 |
Adjustments to reconcile net earnings to net cash flows provided by operations: | ||||||||
Depreciation and amortization: | ||||||||
Property, equipment and improvements | 26,405 | 22,276 | 74,484 | 66,994 | ||||
Intangible assets | 49,555 | 23,135 | 103,308 | 67,074 | ||||
Gain on sale of ECR business | - | (31,456) | (15,608) | (113,366) | ||||
(Gain) loss on investment in equity securities | (37,702) | (131,350) | (152,145) | 138,875 | ||||
Stock based compensation | 14,542 | 12,373 | 41,519 | 36,208 | ||||
Equity in earnings of operating ventures, net of return on capital distributions | (3,092) | (1,924) | 3,261 | (1,689) | ||||
Loss (gain) on disposals of assets, net | 396 | (54) | 749 | (301) | ||||
Impairment of equity method investment and other long term assets | 6,941 | - | 40,138 | - | ||||
Loss on pension and retiree medical plan changes | - | - | - | 2,651 | ||||
Deferred income taxes | (2,644) | (10,967) | 38,419 | 62,473 | ||||
Changes in assets and liabilities, excluding the effects of businesses acquired: | ||||||||
Receivables and contract assets, net of contract liabilities | 158,450 | 78,070 | 231,992 | (135,615) | ||||
Prepaid expenses and other current assets | 32,681 | 28,679 | 47,202 | 19,902 | ||||
Miscellaneous other assets | 31,510 | 9,094 | 107,911 | 77,524 | ||||
Accounts payable | 2,014 | 37,585 | (150,736) | (115,080) | ||||
Accrued liabilities | (257,970) | (25,296) | (158,772) | (78,863) | ||||
Other deferred liabilities | (22,495) | 97,082 | (44,985) | (56,426) | ||||
Other, net | 158 | (1,789) | (4,639) | (27,402) | ||||
Net cash provided by operating activities | 173,341 | 359,508 | 523,573 | 374,476 | ||||
Cash Flows from Investing Activities: | ||||||||
Additions to property and equipment | (20,617) | (27,484) | (65,670) | (88,821) | ||||
Disposals of property and equipment and other assets | 41 | 58 | 468 | 96 | ||||
Capital contributions to equity investees, net of return of capital distributions | - | - | (4,193) | (12,358) | ||||
Acquisitions of businesses, net of cash acquired | - | - | (1,741,062) | (286,534) | ||||
Disposal of investment in equity securities | 38,994 | - | 52,021 | - | ||||
Proceeds (payments) related to sales of businesses | - | - | 36,360 | (5,061) | ||||
Net cash provided by (used for) investing activities | 18,418 | (27,426) | (1,722,076) | (392,678) | ||||
Cash Flows from Financing Activities: | ||||||||
Net (repayments) proceeds from borrowings | (358,503) | (954,863) | 1,423,854 | 756,508 | ||||
Debt issuance costs | (50) | - | (2,747) | (1,807) | ||||
Proceeds from issuances of common stock | 11,130 | 9,873 | 29,715 | 28,793 | ||||
Common stock repurchases | - | - | (24,949) | (285,822) | ||||
Taxes paid on vested restricted stock | (154) | (2,913) | (25,796) | (27,655) | ||||
Cash dividends, including to noncontrolling interests | (38,004) | (33,991) | (119,884) | (97,521) | ||||
Net cash (used for) provided by financing activities | (385,581) | (981,894) | 1,280,193 | 372,496 | ||||
Effect of Exchange Rate Changes | 5,699 | 18,743 | 34,617 | 39,448 | ||||
Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash | (188,123) | (631,069) | 116,307 | 393,742 | ||||
Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period | 1,166,854 | 1,655,879 | 862,424 | 631,068 | ||||
Cash and Cash Equivalents, including Restricted Cash, at the End of the Period | $ | 978,731 | $ | 1,024,810 | $ | 978,731 | $ | 1,024,810 |
July 2, 2021 | June 26, 2020 | |||
Critical Mission Solutions | $ | 9,565 | $ | 9,066 |
People & Places Solutions | 15,557 | 14,608 | ||
PA Consulting | 314 | - | ||
Total | $ | 25,436 | $ | 23,674 |
Three Months Ended | ||||||||
July 2, 2021 | ||||||||
Unaudited | U.S. GAAP | Effects of Restructuring, Transaction and Other Charges (1) | Other Adjustments (2) | Adjusted | ||||
Revenues | $ | 3,576,436 | $ | - | $ | - | $ | 3,576,436 |
Pass through revenue
|
- | - | (612,045) | (612,045) | ||||
Net revenue | 3,576,436 | - | (612,045) | 2,964,391 | ||||
Direct cost of contracts | (2,759,501) | (3) | 612,045 | (2,147,459) | ||||
Gross profit | 816,935 | (3) | - | 816,932 | ||||
Selling, general and administrative expenses | (553,189) | 1,971 | 49,555 | (501,663) | ||||
Operating Profit | 263,746 | 1,968 | 49,555 | 315,269 | ||||
Total other income (expense), net | 19,648 | 5,674 | (39,693) | (14,371) | ||||
Earnings from Continuing Operations Before Taxes | 283,394 | 7,642 | 9,862 | 300,898 | ||||
Income Tax Expense from Continuing Operations | (109,186) | (7,287) | 56,107 | (60,366) | ||||
Net Earnings of the Group from Continuing Operations | 174,208 | 355 | 65,969 | 240,532 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (9,182) | - | - | (9,182) | ||||
Net Loss Attributable to Redeemable Noncontrolling interests | 384 | 3,553 | (19,614) | (15,677) | ||||
Net Earnings Attributable to Jacobs from Continuing Operations | 165,410 | 3,908 | 46,355 | 215,673 | ||||
Net Earnings Attributable to Discontinued Operations | 384 | - | - | 384 | ||||
Net Earnings attributable to Jacobs | $ | 165,794 | $ | 3,908 | $ | 46,355 | $ | 216,057 |
Preferred Redeemable Noncontrolling interests redemption value adjustment | (57,307) | 57,307 | - | - | ||||
Net earnings from continuing operations allocated to common stock for EPS calculation |
$ | 108,103 | $ | 61,215 | $ | 46,355 | $ | 215,673 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 0.82 | $ | 0.47 | $ | 0.35 | $ | 1.64 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | - | $ | - | $ | - | $ | - |
Diluted Earnings Per Share | $ | 0.83 | $ | 0.47 | $ | 0.35 | $ | 1.64 |
Operating profit margin | 7.4 | % | 10.6 | % |
(1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation and acquisition related programs. 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 mainly (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 $612.0 million, (b) the removal of amortization of intangible assets of $49.6 million, (c) the removal of $38.7 million in fair value adjustments related to our investment in Worley stock and certain foreign currency revaluations relating to the ECR sale, (d) the removal of the fair value adjustment of the Company's investment in C3 of $1.0 million, (e) the exclusion of impacts on the Company's effective tax rates associated with revised estimates on US taxation of certain foreign earnings, certain tax return filing adjustments and the removal of $30.8 million in additional income tax expense attributable to tax rate increases in the UK during in 2021, (f) associated noncontrolling interest impacts for the above adjustment items and (g) income tax expense adjustments for the above pre-tax adjustment items.
|
Three Months Ended | ||||||||
June 26, 2020 | ||||||||
Unaudited | U.S. GAAP | Effects of Restructuring, Transaction and Other Charges | Other Adjustments (1) | Adjusted | ||||
Revenues | $ | 3,260,057 | $ | - | $ | - | $ | 3,260,057 |
Pass through revenue
|
- | - | (578,717) | (578,717) | ||||
Net revenue | 3,260,057 | - | (578,717) | 2,681,340 | ||||
Direct cost of contracts | (2,631,031) | 1,841 | 578,717 | (2,050,473) | ||||
Gross profit | 629,026 | 1,841 | - | 630,867 | ||||
Selling, general and administrative expenses | (434,650) | 18,631 | 24,083 | (391,936) | ||||
Operating Profit | 194,376 | 20,472 | 24,083 | 238,931 | ||||
Total other income (expense), net | 109,305 | - | (123,971) | (14,666) | ||||
Earnings from Continuing Operations Before Taxes | 303,681 | 20,472 | (99,888) | 224,265 | ||||
Income Tax Expense from Continuing Operations | (67,674) | (6,351) | 24,125 | (49,900) | ||||
Net Earnings of the Group from Continuing Operations | 236,007 | 14,121 | (75,763) | 174,365 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (9,121) | - | - | (9,121) | ||||
Net Earnings from Continuing Operations attributable to Jacobs | 226,886 | 14,121 | (75,763) | 165,244 | ||||
Net Earnings Attributable to Discontinued Operations | 18,043 | - | - | 18,043 | ||||
Net Earnings attributable to Jacobs | $ | 244,929 | $ | 14,121 | $ | (75,763) | $ | 183,287 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 1.73 | $ | 0.11 | $ | (0.58) | $ | 1.26 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | 0.14 | $ | - | $ | - | $ | 0.14 |
Diluted Earnings Per Share | $ | 1.87 | $ | 0.11 | $ | (0.58) | $ | 1.40 |
Operating profit margin | 6.0 | % | 8.9 | % |
(1) 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 $578.7 million, (b) the removal of amortization of intangible assets of $23.1 million, (c) the reclassification of revenues under the Company's TSA of $1.0 million included in other income for U.S. GAAP reporting purposes to SG&A, (d) the removal of $123.1 million in fair value adjustments related to our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale and (e) associated income tax expense adjustments for the above pre-tax adjustment items.
|
Nine Months Ended | ||||||||
July 2, 2021 | ||||||||
Unaudited | U.S. GAAP | Effects of Restructuring, Transaction and Other Charges (1) | Other Adjustments (2) | Adjusted | ||||
Revenues | $ | 10,506,144 | $ | - | $ | - | $ | 10,506,144 |
Pass through revenue
|
- | - | (1,837,350) | (1,837,350) | ||||
Net revenue | 10,506,144 | - | (1,837,350) | 8,668,794 | ||||
Direct cost of contracts | (8,290,137) | 283 | 1,837,350 | (6,452,504) | ||||
Gross profit | 2,216,007 | 283 | - | 2,216,290 | ||||
Selling, general and administrative expenses | (1,779,435) | 345,442 | 103,282 | (1,330,711) | ||||
Operating Profit | 436,572 | 345,725 | 103,282 | 885,579 | ||||
Total other income (expense), net | 88,650 | 42,871 | (151,992) | (20,471) | ||||
Earnings from Continuing Operations Before Taxes | 525,222 | 388,596 | (48,710) | 865,108 | ||||
Income Tax Expense from Continuing Operations | (175,437) | (29,398) | 10,186 | (194,649) | ||||
Net Earnings of the Group from Continuing Operations | 349,785 | 359,198 | (38,524) | 670,459 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (29,366) | - | - | (29,366) | ||||
Net Loss Attributable to Redeemable Noncontrolling interests | 101,776 | (103,480) | (20,981) | (22,685) | ||||
Net Earnings Attributable to Jacobs from Continuing Operations | 422,195 | 255,718 | (59,505) | 618,408 | ||||
Net Earnings Attributable to Discontinued Operations | 11,690 | - | - | 11,690 | ||||
Net Earnings attributable to Jacobs | $ | 433,885 | $ | 255,718 | $ | (59,505) | $ | 630,098 |
Preferred Redeemable Noncontrolling interests redemption value adjustment | (57,307) | 57,307 | - | - | ||||
Net earnings from continuing operations allocated to common stock for EPS calculation |
$ | 364,888 | $ | 313,025 | $ | (59,505) | $ | 618,408 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 2.78 | $ | 2.39 | $ | (0.45) | $ | 4.71 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | 0.09 | $ | - | $ | - | $ | 0.09 |
Diluted Earnings Per Share | $ | 2.87 | $ | 2.39 | $ | (0.45) | $ | 4.80 |
Operating profit margin | 4.2 | % | 10.2 | % |
(1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation and acquisition related programs, impairment charges relating to our investment in AWE, along with after-tax $287.2 million in PA Consulting deal related costs and associated noncontrolling interest 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 mainly (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 $1.8 billion, (b) the removal of amortization of intangible assets of $103.3 million, (c) the removal of $102.2 million in fair value adjustments related to our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale, (d) the removal of the fair value adjustment of the Company's investment in C3 of $49.6 million, (e) the exclusion of impacts on the Company's effective tax rates associated with revised estimates on US taxation of certain foreign earnings, certain tax return filing adjustments and the removal of $30.8 million in additional income tax expense attributable to tax rate increases in the UK during in 2021, (f) associated noncontrolling interest impacts for the above adjustment items and (g) income tax expense adjustments for the above pre-tax adjustment items.
|
Nine Months Ended | ||||||||
June 26, 2020 | ||||||||
Unaudited | U.S. GAAP | Effects of Restructuring, Transaction and Other Charges | Other Adjustments (1) | Adjusted | ||||
Revenues | $ | 10,047,286 | $ | - | $ | - | $ | 10,047,286 |
Pass through revenue
|
- | - | (1,921,863) | (1,921,863) | ||||
Net revenue | 10,047,286 | - | (1,921,863) | 8,125,423 | ||||
Direct cost of contracts | (8,125,554) | 1,841 | 1,921,863 | (6,201,850) | ||||
Gross profit | 1,921,732 | 1,841 | - | 1,923,573 | ||||
Selling, general and administrative expenses | (1,408,232) | 113,698 | 82,962 | (1,211,572) | ||||
Operating Profit | 513,500 | 115,539 | 82,962 | 712,001 | ||||
Total other (expense) income, net | (132,453) | 2,799 | 103,720 | (25,934) | ||||
Earnings from Continuing Operations Before Taxes | 381,047 | 118,338 | 186,682 | 686,067 | ||||
Income Tax Expense from Continuing Operations | (75,041) | (31,133) | (45,069) | (151,243) | ||||
Net Earnings of the Group from Continuing Operations | 306,006 | 87,205 | 141,613 | 534,824 | ||||
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (21,662) | - | - | (21,662) | ||||
Net Earnings from Continuing Operations attributable to Jacobs | 284,344 | 87,205 | 141,613 | 513,162 | ||||
Net Earnings Attributable to Discontinued Operations | 125,511 | - | - | 125,511 | ||||
Net Earnings attributable to Jacobs | $ | 409,855 | $ | 87,205 | $ | 141,613 | $ | 638,673 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 2.13 | $ | 0.65 | $ | 1.06 | $ | 3.85 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | 0.94 | $ | - | $ | - | $ | 0.94 |
Diluted Earnings Per Share | $ | 3.08 | $ | 0.65 | $ | 1.06 | $ | 4.80 |
Operating profit margin | 5.11 | % | 8.76 | % |
(1) 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 $1.9 billion, (b) the removal of amortization of intangible assets of $67.1 million, (c) the reclassification of revenues under the TSA of $15.2 million included in other income for U.S. GAAP reporting purposes to SG&A, (d) the removal of$119.0 million in fair value adjustments related to our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale and (e) associated income tax expense adjustments for the above pre-tax adjustment items.
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Three Months Ended | Nine Months Ended | |||||||
Unaudited | July 2, 2021 | June 26, 2020 | July 2, 2021 | June 26, 2020 | ||||
Numerator for Basic and Diluted EPS: | ||||||||
Net earnings attributable to Jacobs from continuing operations | $ | 165,410 | $ | 226,886 | $ | 422,195 | $ | 284,344 |
Preferred Redeemable Noncontrolling interests redemption value adjustment | (57,307) | - | (57,307) | - | ||||
Net earnings from continuing operations allocated to participating securities | - | (24) | - | (77) | ||||
Net earnings from continuing operations allocated to common stock for EPS calculation | $ | 108,103 | $ | 226,862 | $ | 364,888 | $ | 284,267 |
Net earnings attributable to Jacobs from discontinued operations | $ | 384 | $ | 18,043 | $ | 11,690 | $ | 125,511 |
Net earnings from discontinued operations allocated to participating securities | - | (2) | - | (34) | ||||
Net earnings from discontinued operations allocated to common stock for EPS calculation | $ | 384 | $ | 18,041 | $ | 11,690 | $ | 125,477 |
Net earnings allocated to common stock for EPS calculation | $ | 108,487 | $ | 244,903 | $ | 376,578 | $ | 409,744 |
Denominator for Basic and Diluted EPS: | ||||||||
Weighted average basic shares | 130,385 | 130,229 | 130,205 | 131,995 | ||||
Shares allocated to participating securities | - | (14) | - | (36) | ||||
Shares used for calculating basic EPS attributable to common stock | 130,385 | 130,215 | 130,205 | 131,959 | ||||
Effect of dilutive securities: | ||||||||
Stock compensation plans | 1,035 | 1,048 | 1,040 | 1,188 | ||||
Shares used for calculating diluted EPS attributable to common stock | 131,420 | 131,263 | 131,245 | 133,147 | ||||
Net Earnings Per Share: | ||||||||
Basic Net Earnings from Continuing Operations Per Share | $ | 0.83 | $ | 1.74 | $ | 2.80 | $ | 2.15 |
Basic Net Earnings from Discontinued Operations Per Share | $ | - | $ | 0.14 | $ | 0.09 | $ | 0.95 |
Basic Earnings Per Share | $ | 0.83 | $ | 1.88 | $ | 2.89 | $ | 3.11 |
Diluted Net Earnings from Continuing Operations Per Share | $ | 0.82 | $ | 1.73 | $ | 2.78 | $ | 2.13 |
Diluted Net Earnings from Discontinued Operations Per Share | $ | - | $ | 0.14 | $ | 0.09 | $ | 0.94 |
Diluted Earnings Per Share | $ | 0.83 | $ | 1.87 | $ | 2.87 | $ | 3.08 |