Jacobs reports 4Q18 results
Published by Nicholas Woodroof,
- 4Q18 revenue of US$4.1 billion grew 56% year-over-year, up 7% on a pro forma basis;
- 4Q18 operating profit margin and adjusted operating profit margin up over 130 bps year-over-year;
- 4Q18 EPS of US$(0.16) and fiscal 2018 EPS of US$1.28, impacted by tax reform and CH2M acquisition related charges;
- 4Q18 adjusted EPS of US$1.31 up 34% year-over-year, fiscal 2018 adjusted EPS of US$4.47 up 38%;
- Q4 gross debt declined a further US$194 million versus Q3, reducing gross debt to adjusted EBITDA to 1.7x;
- Portfolio transformation accelerated with announced US$3.3 billion sale of Energy, Chemicals and Resources business;
- Fiscal 2019 expectation reaffirmed for US$920 million to US$1 billion of adjusted EBITDA1, excluding ECR results
Steve Demetriou, Chair and CEO, said: "This was an exciting year at Jacobs. We accelerated our profitable growth strategy with the acquisition of CH2M and continued to transform the portfolio with the announced sale of our ECR business, all while delivering strong financial results across each segment. We continued our relentless focus on a culture of accountability, strong operational execution and profitable growth. Our emphasis on driving performance excellence resulted in fiscal 2018 pro forma revenue growth of over 9% and adjusted operating profit margin of 6.0% - achieving our 2019 strategic profit margin objective one year early. Looking forward, our active portfolio management has positioned the company to deliver higher-value sustainable and digitally-enabled solutions for our infrastructure and government clients worldwide."
The company further reduced gross debt by nearly US$200 million during the quarter to US$2.2 billion, which resulted in a gross debt leverage ratio of 1.7x adjusted EBITDA, well in line with its communicated target of under 2x. On a pro forma basis which adjusts for the sale of ECR, the company's net cash would be US$1.2 billion with gross debt to adjusted EBITDA of 0.5x.
Jacobs' CFO, Kevin Berryman, added, "Our fourth quarter and fiscal 2018 results showed continued disciplined execution against our strategy on growing in higher margin less cyclical markets. We delivered strong revenue growth and gross and operating profit margin percentage increases over 130 basis points year-over-year in the quarter. Our fourth quarter adjusted cash flow from operations continued to be healthy at over US$250 million, when excluding a US$50 million voluntary pension payment."
Berryman also confirmed the company's fiscal 2019 outlook: "Following our strong performance in 2018, we continue to expect US$920 million to US$1 billion in adjusted EBITDA, excluding the ECR results for fiscal 2019."
Read the article online at: https://www.worldfertilizer.com/special-reports/21112018/jacobs-reports-4q18-results/
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