Jacobs Reports Earnings for the Third Quarter of Fiscal 2019

Strong Top- and Bottom-Line Q3 Results; Increasing Fiscal 2019 Outlook Delivering Innovative Solutions and Disciplined Execution

Published

DALLAS, Aug. 5, 2019 /PRNewswire/ -- Jacobs Engineering Group Inc. (NYSE: JEC) today announced its financial results for the fiscal third quarter ended June 28, 2019.

Q3 2019 Highlights:

  • Gross revenue of $3.2 billion1 grew 8.0% year-over-year; net revenue grew organically by 11.1%2
  • EPS from continuing operations of $0.65, results impacted by higher restructuring and transaction costs
  • Adjusted EPS from continuing operations of $1.40, up 13% year-over-year, including a discrete tax benefit
  • Backlog increased $2.6 billion to $22.5 billion, up 8% on an organic basis2
  • Increasing fiscal 2019 adjusted pro forma EPS outlook to $4.75 - $5.00 (excluding full year ECR)3
  • Completed $350 million of $1 billion share repurchase authorization through August 2nd

Jacobs' Chair and CEO Steve Demetriou commented, "Our strong third quarter results and increased earnings outlook are yet another example of driving an innovative culture, strengthening our execution discipline and scaling our global network of expertise. As we execute against our strategy, we are profitably winning a greater level of business in our existing sectors, while diversifying into new high margin growth opportunities. We are creating a company like no other, putting our knowledge and imagination together to shape the next generation of innovative solutions. Our KeyW acquisition is already delivering with a growing pipeline of new and enhanced opportunities as we bring the two organizations together."

Jacobs' CFO Kevin Berryman added, "We delivered another quarter of solid results across both lines of business with accelerating growth in our sales pipelines, during the most transformative period in our company's history. The CH2M integration has exceeded our revenue and cost targets and is on track to be completed by the end of calendar 2019. Our divestiture of ECR is moving into the final stages of separation. We are raising our fiscal 2019 outlook and now expect adjusted EBITDA in the range of $965 million - $1 billion and adjusted pro forma EPS of $4.75 - $5.00.3 From a long-term standpoint, we have created a transformed business with a stronger balance sheet."

Third Quarter Review
Fiscal 3Q 2019 Fiscal 3Q 2018 Change
Revenue $3.2 billion $2.9 billion $0.3 billion
Net Revenue $2.6 billion $2.4 billion $0.2 billion
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16

The company's adjusted net earnings from continuing operations and adjusted EPS from continuing operations for the third quarter of fiscal 2019 and fiscal 2018 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, refer to the section entitled "Non-GAAP Financial Measures" at the end of this release.

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share)
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share)
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share)
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share)
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding)
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share)
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share)
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share)
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16

Fiscal third quarter 2019 earnings per share from continuing operations reflect an adjusted effective tax rate of 22.6%, excluding discrete tax items of 16 cents per share. Fiscal third quarter 2018 included an 8 cent benefit from discrete tax items.

Jacobs is hosting a conference call at 11:00 A.M. ET on Monday August 5, 2019, which it is webcasting live at www.jacobs.com.

Energy, Chemicals and Resources (ECR) Sale to WorleyParsons

On April 26, 2019, Jacobs completed the previously announced sale of the Jacobs' ECR business to WorleyParsons Limited.

KeyW Acquisition

On June 12, 2019, Jacobs completed the previously announced acquisition of The KeyW Holding Corporation.

About Jacobs

Jacobs leads the global professional services sector providing solutions for a more connected, sustainable world. With approximately $12 billion in revenue and a talent force of more than 50,000, Jacobs provides a full spectrum of services including scientific, technical, professional and construction- and program-management for business, industrial, commercial, government and infrastructure sectors. For more information, visit www.jacobs.com, and connect with Jacobs on www.jacobs.com, LinkedIn, Twitter, Facebook and Instagram.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Statements made in this press release that are not based on historical fact are forward-looking statements. Although such statements are based on management's current estimates and expectations, and 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. For a description of some 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 28, 2018, and in particular the discussions contained 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, and our Quarterly Report on Form 10-Q for the quarters ended December 28, 2018 and March 29, 2019, and in particular the discussions contained under Part I, Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations; Part II, Item 1 - Legal Proceedings; and Part II, Item 1A - Risk Factors, 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.

1Reflects continuing operations as reported in accordance with GAAP. 2Excludes $23.9 million in revenue and $1.1 billion in backlog contribution from KeyW. 3Reconciliation of the adjusted pro forma EPS outlook and adjusted EBITDA outlook for the full fiscal year 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 2019.

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights:
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding)
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data):
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share)
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598)
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722)
Operating Profit 89,954 162,512 305,763 226,596
Other Income (Expense):
Interest income 3,398 1,277 7,172 6,896
Interest expense (18,978) (23,788) (73,727) (50,107)
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016)
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230)
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215
Net Earnings of the Group 531,064 150,071 723,427 204,565
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539)
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972
Net Earnings Per Share:
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46

 

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands):
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding)
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers:
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930)
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986
Other Income (Expense):
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit:
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163)
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744)
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915)
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016)
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972
Net Earnings Per Share:
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands):
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding) (1) Other corporate expenses include costs that were previously allocated to the ECR segment prior to discontinued operations presentation in connection with the ECR sale in the approximate amounts of $2.0 million and $6.4 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $14.8 million and $19.2 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. Other corporate expenses also include intangibles amortization of $18.4 million and $19.3 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $55.7 million and $49.1 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively.
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 (2) Includes gain on the settlement of the CH2M retiree medical plans of $0.0 million and $34.6 million, respectively, and the amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.5 million, respectively, for the three- and nine-month periods ended June 28, 2019, as well as amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.2 million, respectively, for the three- and nine-month periods ended June 29, 2018. Also includes revenues under the Company's TSA with WorleyParsons of $14.1 million, respectively, for the three- and nine-month periods ended June 28, 2019, for which the related costs are included in SG&A.
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers:
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930)
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986
Other Income (Expense):
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit:
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163)
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744)
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915)
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016)
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972
Net Earnings Per Share:
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46

 

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands): Other Operational Information (in thousands):
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding) (1) Other corporate expenses include costs that were previously allocated to the ECR segment prior to discontinued operations presentation in connection with the ECR sale in the approximate amounts of $2.0 million and $6.4 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $14.8 million and $19.2 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. Other corporate expenses also include intangibles amortization of $18.4 million and $19.3 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $55.7 million and $49.1 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively.
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended Unaudited For the Nine Months Ended
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 (2) Includes gain on the settlement of the CH2M retiree medical plans of $0.0 million and $34.6 million, respectively, and the amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.5 million, respectively, for the three- and nine-month periods ended June 28, 2019, as well as amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.2 million, respectively, for the three- and nine-month periods ended June 29, 2018. Also includes revenues under the Company's TSA with WorleyParsons of $14.1 million, respectively, for the three- and nine-month periods ended June 28, 2019, for which the related costs are included in SG&A. Continuing Operations June 28, 2019 June 29, 2018
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers: Depreciation (pre-tax) $ 67,553 $ 69,663
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303 Amortization of Intangibles (pre-tax) $ 55,732 $ 49,052
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613 Pass-Through Costs Included in Revenues $ 1,840,572 $ 1,603,930
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930) Capital Expenditures $ 97,466 $ 48,975
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986
Other Income (Expense):
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit:
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163)
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744)
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915)
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016)
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972
Net Earnings Per Share:
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46

 

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands): Other Operational Information (in thousands): Balance Sheet (in thousands):
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding) (1) Other corporate expenses include costs that were previously allocated to the ECR segment prior to discontinued operations presentation in connection with the ECR sale in the approximate amounts of $2.0 million and $6.4 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $14.8 million and $19.2 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. Other corporate expenses also include intangibles amortization of $18.4 million and $19.3 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $55.7 million and $49.1 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively.
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended Unaudited For the Nine Months Ended Unaudited June 28, 2019 September 28, 2018
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 (2) Includes gain on the settlement of the CH2M retiree medical plans of $0.0 million and $34.6 million, respectively, and the amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.5 million, respectively, for the three- and nine-month periods ended June 28, 2019, as well as amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.2 million, respectively, for the three- and nine-month periods ended June 29, 2018. Also includes revenues under the Company's TSA with WorleyParsons of $14.1 million, respectively, for the three- and nine-month periods ended June 28, 2019, for which the related costs are included in SG&A. Continuing Operations June 28, 2019 June 29, 2018 ASSETS
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers: Depreciation (pre-tax) $ 67,553 $ 69,663 Current Assets:
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303 Amortization of Intangibles (pre-tax) $ 55,732 $ 49,052 Cash and cash equivalents $ 998,242 $ 634,870
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613 Pass-Through Costs Included in Revenues $ 1,840,572 $ 1,603,930 Receivables and contract assets 2,779,189 2,513,934
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930) Capital Expenditures $ 97,466 $ 48,975 Prepaid expenses and other 695,810 171,096
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683 Current assets held for sale 2,704 1,236,684
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Total current assets 4,475,945 4,556,584
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986 Property, Equipment and Improvements, net 305,266 257,859
Other Income (Expense): Other Noncurrent Assets:
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended Goodwill 5,370,741 4,795,856
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Intangibles, net 694,117 572,952
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit: Miscellaneous 768,102 760,854
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609 Noncurrent assets held for sale 27,091 1,701,690
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809 Total other noncurrent assets 6,860,051 7,831,352
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418 $ 11,641,262 $ 12,645,795
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163) LIABILITIES AND STOCKHOLDERS' EQUITY
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744) Current Liabilities:
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915) Short-term debt $ 222,687 $ 3,172
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596 Accounts payable 884,992 776,189
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016) Accrued liabilities 1,673,272 1,167,002
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580 Contract liabilities 506,394 442,760
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161 Current liabilities held for sale 2,103 756,570
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972 Total current liabilities 3,289,448 3,145,693
Net Earnings Per Share: Long-term Debt 1,025,198 2,144,167
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53 Other Deferred Liabilities 1,218,499 1,260,977
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94 Noncurrent Liabilities Held for Sale 150,604
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47 Commitments and Contingencies
Stockholders' Equity:
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53 Capital stock:
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93                 Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46                 Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—135,848,893 shares and 142,217,933 shares as of June 28, 2019 and September 28, 2018, respectively 135,849 142,218
Additional paid-in capital 2,634,177 2,708,839
Retained earnings 4,053,626 3,809,991
Accumulated other comprehensive loss (763,589) (806,703)
Total Jacobs stockholders' equity 6,060,063 5,854,345
Noncontrolling interests 48,054 90,009
Total Group stockholders' equity 6,108,117 5,944,354
$ 11,641,262 $ 12,645,795

 

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands): Other Operational Information (in thousands): Balance Sheet (in thousands): Statement of Cash Flow (in thousands):
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding) (1) Other corporate expenses include costs that were previously allocated to the ECR segment prior to discontinued operations presentation in connection with the ECR sale in the approximate amounts of $2.0 million and $6.4 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $14.8 million and $19.2 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. Other corporate expenses also include intangibles amortization of $18.4 million and $19.3 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $55.7 million and $49.1 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively.
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended Unaudited For the Nine Months Ended Unaudited June 28, 2019 September 28, 2018 For the Three Months Ended For the Nine Months Ended
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 (2) Includes gain on the settlement of the CH2M retiree medical plans of $0.0 million and $34.6 million, respectively, and the amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.5 million, respectively, for the three- and nine-month periods ended June 28, 2019, as well as amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.2 million, respectively, for the three- and nine-month periods ended June 29, 2018. Also includes revenues under the Company's TSA with WorleyParsons of $14.1 million, respectively, for the three- and nine-month periods ended June 28, 2019, for which the related costs are included in SG&A. Continuing Operations June 28, 2019 June 29, 2018 ASSETS Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers: Depreciation (pre-tax) $ 67,553 $ 69,663 Current Assets: Cash Flows from Operating Activities:
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303 Amortization of Intangibles (pre-tax) $ 55,732 $ 49,052 Cash and cash equivalents $ 998,242 $ 634,870 Net earnings attributable to the Group $ 531,064 $ 150,071 $ 723,427 $ 204,565
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613 Pass-Through Costs Included in Revenues $ 1,840,572 $ 1,603,930 Receivables and contract assets 2,779,189 2,513,934 Adjustments to reconcile net earnings to net cash flows provided by operations:
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930) Capital Expenditures $ 97,466 $ 48,975 Prepaid expenses and other 695,810 171,096 Depreciation and amortization:
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683 Current assets held for sale 2,704 1,236,684 Property, equipment and improvements 25,851 29,576 69,663 88,715
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Total current assets 4,475,945 4,556,584 Intangible assets 18,383 22,447 56,346 58,495
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986 Property, Equipment and Improvements, net 305,266 257,859 (Gain) Loss on disposal of ECR business (917,697) (917,697)
Other Income (Expense): Other Noncurrent Assets: (Gain) Loss on disposal of other businesses and investments 9,608 (444) 9,608 (444)
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended Goodwill 5,370,741 4,795,856 (Gain) Loss on investment in equity securities (2,175) (2,175)
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Intangibles, net 694,117 572,952 Stock based compensation 18,425 14,939 47,341 61,821
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit: Miscellaneous 768,102 760,854 Equity in earnings of operating ventures, net (2,307) (9,174) (7,632) (8,387)
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609 Noncurrent assets held for sale 27,091 1,701,690 (Gain) Losses on disposals of assets, net (1,732) 6,138 1,998 10,055
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809 Total other noncurrent assets 6,860,051 7,831,352 Loss (Gain) on pension and retiree medical plan changes (34,621) 3,819
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418 $ 11,641,262 $ 12,645,795 Deferred income taxes 83,600 (14,173) 52,592 (7,374)
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163) LIABILITIES AND STOCKHOLDERS' EQUITY Changes in assets and liabilities, excluding the effects of businesses acquired:
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744) Current Liabilities: Receivables and contract assets (149,885) (144,474) (402,616) (316,386)
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915) Short-term debt $ 222,687 $ 3,172 Prepaid expenses and other current assets (41,734) 7,981 5,999 5,620
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596 Accounts payable 884,992 776,189 Accounts payable 74,532 120,741 67,778 138,713
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016) Accrued liabilities 1,673,272 1,167,002 Accrued liabilities (103,416) 28,708 (161,179) 8,083
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580 Contract liabilities 506,394 442,760 Contract liabilities 361,881 1,096 419,762 34,695
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161 Current liabilities held for sale 2,103 756,570  Other deferred liabilities (80,707) (3,587) (129,468) (21,007)
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972 Total current liabilities 3,289,448 3,145,693       Other, net 11,228 4,901 (19,439) 7,967
Net Earnings Per Share: Long-term Debt 1,025,198 2,144,167           Net cash (used for) provided by operating activities (165,081) 214,746 (220,313) 268,950
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53 Other Deferred Liabilities 1,218,499 1,260,977 Cash Flows from Investing Activities:
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94 Noncurrent Liabilities Held for Sale 150,604 Additions to property and equipment (45,190) (18,563) (106,670) (63,408)
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47 Commitments and Contingencies Disposals of property and equipment and other assets 60 7,300 428
Stockholders' Equity: Distributions of capital from (contributions to) equity investees 15,310 (3,904) 7,614
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53 Capital stock: Acquisitions of businesses, net of cash acquired (575,110) (3,729) (575,110) (1,488,546)
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93                 Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none Disposals of investment in equity securities 64,708 64,708
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46                 Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—135,848,893 shares and 142,217,933 shares as of June 28, 2019 and September 28, 2018, respectively 135,849 142,218 Proceeds (payments) related to sales of businesses 2,796,734 2,796,734 3,403
Additional paid-in capital 2,634,177 2,708,839 Purchases of noncontrolling interests (1,113)
Retained earnings 4,053,626 3,809,991            Net cash provided by (used for) investing activities 2,241,202 (6,982) 2,181,945 (1,540,509)
Accumulated other comprehensive loss (763,589) (806,703) Cash Flows from Financing Activities:
Total Jacobs stockholders' equity 6,060,063 5,854,345 Net (payments) proceeds from borrowings (1,895,959) (159,814) (1,200,388) 1,402,387
Noncontrolling interests 48,054 90,009 Debt issuance costs (3,741)
Total Group stockholders' equity 6,108,117 5,944,354 Proceeds from issuances of common stock 20,198 6,952 46,143 33,588
$ 11,641,262 $ 12,645,795 Common stock repurchases (36,183) (31) (524,618) (2,982)
Taxes paid on vested restricted stock (5,870) (10,835) (26,187) (27,975)
Cash dividends, including to noncontrolling interests (25,867) (20,999) (82,257) (65,232)
Net cash provided by (used for) financing activities (1,943,681) (184,727) (1,791,048) 1,339,786
Effect of Exchange Rate Changes 15,164 (34,082) 34,300 (18,008)
Net Increase (decrease) in Cash and Cash Equivalents 147,604 (11,045) 204,884 50,219
Cash and Cash Equivalents at the Beginning of the Period 850,638 835,415 793,358 774,151
Cash and Cash Equivalents at the End of the Period 998,242 824,370 998,242 824,370
Less Cash and Cash Equivalents included in Assets held for Sale (161,666) (161,666)
Cash and Cash Equivalents of Continuing Operations at the End of the Period $ 998,242 $ 662,704 $ 998,242 $ 662,704

 

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands): Other Operational Information (in thousands): Balance Sheet (in thousands): Statement of Cash Flow (in thousands): Backlog (in millions):
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding) (1) Other corporate expenses include costs that were previously allocated to the ECR segment prior to discontinued operations presentation in connection with the ECR sale in the approximate amounts of $2.0 million and $6.4 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $14.8 million and $19.2 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. Other corporate expenses also include intangibles amortization of $18.4 million and $19.3 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $55.7 million and $49.1 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively.
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended Unaudited For the Nine Months Ended Unaudited June 28, 2019 September 28, 2018 For the Three Months Ended For the Nine Months Ended June 28, 2019 June 29, 2018
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 (2) Includes gain on the settlement of the CH2M retiree medical plans of $0.0 million and $34.6 million, respectively, and the amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.5 million, respectively, for the three- and nine-month periods ended June 28, 2019, as well as amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.2 million, respectively, for the three- and nine-month periods ended June 29, 2018. Also includes revenues under the Company's TSA with WorleyParsons of $14.1 million, respectively, for the three- and nine-month periods ended June 28, 2019, for which the related costs are included in SG&A. Continuing Operations June 28, 2019 June 29, 2018 ASSETS Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 8,456 $ 7,147
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers: Depreciation (pre-tax) $ 67,553 $ 69,663 Current Assets: Cash Flows from Operating Activities: Buildings, Infrastructure and Advanced Facilities 14,011 12,693
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303 Amortization of Intangibles (pre-tax) $ 55,732 $ 49,052 Cash and cash equivalents $ 998,242 $ 634,870 Net earnings attributable to the Group $ 531,064 $ 150,071 $ 723,427 $ 204,565             Total $ 22,467 $ 19,840
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613 Pass-Through Costs Included in Revenues $ 1,840,572 $ 1,603,930 Receivables and contract assets 2,779,189 2,513,934 Adjustments to reconcile net earnings to net cash flows provided by operations:
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930) Capital Expenditures $ 97,466 $ 48,975 Prepaid expenses and other 695,810 171,096 Depreciation and amortization:
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683 Current assets held for sale 2,704 1,236,684 Property, equipment and improvements 25,851 29,576 69,663 88,715
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Total current assets 4,475,945 4,556,584 Intangible assets 18,383 22,447 56,346 58,495
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986 Property, Equipment and Improvements, net 305,266 257,859 (Gain) Loss on disposal of ECR business (917,697) (917,697)
Other Income (Expense): Other Noncurrent Assets: (Gain) Loss on disposal of other businesses and investments 9,608 (444) 9,608 (444)
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended Goodwill 5,370,741 4,795,856 (Gain) Loss on investment in equity securities (2,175) (2,175)
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Intangibles, net 694,117 572,952 Stock based compensation 18,425 14,939 47,341 61,821
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit: Miscellaneous 768,102 760,854 Equity in earnings of operating ventures, net (2,307) (9,174) (7,632) (8,387)
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609 Noncurrent assets held for sale 27,091 1,701,690 (Gain) Losses on disposals of assets, net (1,732) 6,138 1,998 10,055
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809 Total other noncurrent assets 6,860,051 7,831,352 Loss (Gain) on pension and retiree medical plan changes (34,621) 3,819
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418 $ 11,641,262 $ 12,645,795 Deferred income taxes 83,600 (14,173) 52,592 (7,374)
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163) LIABILITIES AND STOCKHOLDERS' EQUITY Changes in assets and liabilities, excluding the effects of businesses acquired:
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744) Current Liabilities: Receivables and contract assets (149,885) (144,474) (402,616) (316,386)
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915) Short-term debt $ 222,687 $ 3,172 Prepaid expenses and other current assets (41,734) 7,981 5,999 5,620
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596 Accounts payable 884,992 776,189 Accounts payable 74,532 120,741 67,778 138,713
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016) Accrued liabilities 1,673,272 1,167,002 Accrued liabilities (103,416) 28,708 (161,179) 8,083
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580 Contract liabilities 506,394 442,760 Contract liabilities 361,881 1,096 419,762 34,695
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161 Current liabilities held for sale 2,103 756,570  Other deferred liabilities (80,707) (3,587) (129,468) (21,007)
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972 Total current liabilities 3,289,448 3,145,693       Other, net 11,228 4,901 (19,439) 7,967
Net Earnings Per Share: Long-term Debt 1,025,198 2,144,167           Net cash (used for) provided by operating activities (165,081) 214,746 (220,313) 268,950
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53 Other Deferred Liabilities 1,218,499 1,260,977 Cash Flows from Investing Activities:
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94 Noncurrent Liabilities Held for Sale 150,604 Additions to property and equipment (45,190) (18,563) (106,670) (63,408)
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47 Commitments and Contingencies Disposals of property and equipment and other assets 60 7,300 428
Stockholders' Equity: Distributions of capital from (contributions to) equity investees 15,310 (3,904) 7,614
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53 Capital stock: Acquisitions of businesses, net of cash acquired (575,110) (3,729) (575,110) (1,488,546)
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93                 Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none Disposals of investment in equity securities 64,708 64,708
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46                 Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—135,848,893 shares and 142,217,933 shares as of June 28, 2019 and September 28, 2018, respectively 135,849 142,218 Proceeds (payments) related to sales of businesses 2,796,734 2,796,734 3,403
Additional paid-in capital 2,634,177 2,708,839 Purchases of noncontrolling interests (1,113)
Retained earnings 4,053,626 3,809,991            Net cash provided by (used for) investing activities 2,241,202 (6,982) 2,181,945 (1,540,509)
Accumulated other comprehensive loss (763,589) (806,703) Cash Flows from Financing Activities:
Total Jacobs stockholders' equity 6,060,063 5,854,345 Net (payments) proceeds from borrowings (1,895,959) (159,814) (1,200,388) 1,402,387
Noncontrolling interests 48,054 90,009 Debt issuance costs (3,741)
Total Group stockholders' equity 6,108,117 5,944,354 Proceeds from issuances of common stock 20,198 6,952 46,143 33,588
$ 11,641,262 $ 12,645,795 Common stock repurchases (36,183) (31) (524,618) (2,982)
Taxes paid on vested restricted stock (5,870) (10,835) (26,187) (27,975)
Cash dividends, including to noncontrolling interests (25,867) (20,999) (82,257) (65,232)
Net cash provided by (used for) financing activities (1,943,681) (184,727) (1,791,048) 1,339,786
Effect of Exchange Rate Changes 15,164 (34,082) 34,300 (18,008)
Net Increase (decrease) in Cash and Cash Equivalents 147,604 (11,045) 204,884 50,219
Cash and Cash Equivalents at the Beginning of the Period 850,638 835,415 793,358 774,151
Cash and Cash Equivalents at the End of the Period 998,242 824,370 998,242 824,370
Less Cash and Cash Equivalents included in Assets held for Sale (161,666) (161,666)
Cash and Cash Equivalents of Continuing Operations at the End of the Period $ 998,242 $ 662,704 $ 998,242 $ 662,704

Non-GAAP Financial Measures:

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 and adjusted EBITDA.

Adjusted net earnings from continuing operations and adjusted EPS from continuing operations are non-GAAP financial measures that are calculated by (i) excluding the costs related to the 2015 restructuring activities, which included involuntary terminations, the abandonment of certain leased offices, combining operational organizations and the co-location of employees into other existing offices; and charges associated with our Europe, U.K. and Middle East region, which included write-offs on contract accounts receivable and charges for statutory redundancy and severance costs (collectively, the "2015 Restructuring and other items"); (ii) excluding costs and other charges associated with restructuring activities implemented in connection with the CH2M acquisition, the ECR divestiture, the KeyW acquisition and other related cost reduction initiatives, which included involuntary terminations, costs associated with co-locating Jacobs and KeyW and CH2M offices, separating physical locations of ECR and continuing operations, costs and expenses of the Integration Management Office and Separation Management Office, including professional services and personnel costs, costs and charges associated with the divestiture of joint venture interests to resolve potential conflicts arising from the CH2M acquisition, expenses relating to certain commitments and contingencies relating to discontinued operations of the CH2M business, and similar costs and expenses (collectively referred to as the "Restructuring and other charges"); (iii) excluding transaction costs and other charges incurred in connection with closing of the KeyW and CH2M acquisitions and sale of the ECR business, including advisor fees, change in control payments, costs and expenses relating to the registration and listing of Jacobs stock issued in connection with the CH2M acquisition, and similar transaction costs and expenses (collectively referred to as "transaction costs"); (iv) excluding charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform; (v) adding back depreciation and amortization relating to the ECR business of the Company that was ceased as a result of the application of held-for-sale accounting; (vi) adding back amortization of intangible assets; (vii) allocating to discontinued operations estimated stranded corporate costs that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business; (viii) allocating to discontinued operations estimated interest expense relating to long-term debt that was paid down with the proceeds of the ECR sale; (ix) the reclassification of revenue under the Company's transition services agreement (TSA) included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of remaining unreimbursed costs associated with the TSA; (x) the exclusion of a one-time favorable adjustment in the fiscal 2019 period associated with a reduction of deferred income taxes for permanently reinvested earnings from non-U.S. subsidiaries in connection with the sale of the ECR business; and (xi) other income tax adjustments. Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis. Adjusted EBITDA is calculated by adding depreciation expense to adjusted operating profit from continuing operations. Net revenue is calculated by excluding pass-through revenues of the BIAF line of business.  We believe that net revenue, adjusted net earnings from continuing operations, adjusted EPS from continuing operations and adjusted EBITDA 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, the inclusion or exclusion of which can obscure underlying trends. Additionally, management uses net revenue, adjusted net earnings from continuing operations, adjusted EPS from continuing operations and adjusted EBITDA 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.

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 revenue, net earnings from continuing operations, EPS from continuing operations to the corresponding "adjusted" amounts. 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 the adjusted EPS and adjusted EBITDA outlook for the full fiscal year 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.

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands): Other Operational Information (in thousands): Balance Sheet (in thousands): Statement of Cash Flow (in thousands): Backlog (in millions): U.S. GAAP Reconciliation for the third quarter of fiscal 2019 and 2018
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding) (1) Other corporate expenses include costs that were previously allocated to the ECR segment prior to discontinued operations presentation in connection with the ECR sale in the approximate amounts of $2.0 million and $6.4 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $14.8 million and $19.2 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. Other corporate expenses also include intangibles amortization of $18.4 million and $19.3 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $55.7 million and $49.1 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively.
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended Unaudited For the Nine Months Ended Unaudited June 28, 2019 September 28, 2018 For the Three Months Ended For the Nine Months Ended June 28, 2019 June 29, 2018 Three Months Ended
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 (2) Includes gain on the settlement of the CH2M retiree medical plans of $0.0 million and $34.6 million, respectively, and the amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.5 million, respectively, for the three- and nine-month periods ended June 28, 2019, as well as amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.2 million, respectively, for the three- and nine-month periods ended June 29, 2018. Also includes revenues under the Company's TSA with WorleyParsons of $14.1 million, respectively, for the three- and nine-month periods ended June 28, 2019, for which the related costs are included in SG&A. Continuing Operations June 28, 2019 June 29, 2018 ASSETS Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 8,456 $ 7,147 June 28, 2019
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers: Depreciation (pre-tax) $ 67,553 $ 69,663 Current Assets: Cash Flows from Operating Activities: Buildings, Infrastructure and Advanced Facilities 14,011 12,693 Unaudited U.S. GAAP Effects ofRestructuring and OtherCharges Effects of TransactionCosts (1) OtherAdjustments(2) Adjusted
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303 Amortization of Intangibles (pre-tax) $ 55,732 $ 49,052 Cash and cash equivalents $ 998,242 $ 634,870 Net earnings attributable to the Group $ 531,064 $ 150,071 $ 723,427 $ 204,565             Total $ 22,467 $ 19,840 Revenues $ 3,169,622 $ $ $ $ 3,169,622
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613 Pass-Through Costs Included in Revenues $ 1,840,572 $ 1,603,930 Receivables and contract assets 2,779,189 2,513,934 Adjustments to reconcile net earnings to net cash flows provided by operations: Pass through revenue (533,935) (533,935)
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930) Capital Expenditures $ 97,466 $ 48,975 Prepaid expenses and other 695,810 171,096 Depreciation and amortization: Net revenue 3,169,622 (533,935) 2,635,687
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683 Current assets held for sale 2,704 1,236,684 Property, equipment and improvements 25,851 29,576 69,663 88,715 Direct cost of contracts (2,543,488) 2,481 533,935 (2,007,072)
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Total current assets 4,475,945 4,556,584 Intangible assets 18,383 22,447 56,346 58,495 Gross profit 626,134 2,481 628,615
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986 Property, Equipment and Improvements, net 305,266 257,859 (Gain) Loss on disposal of ECR business (917,697) (917,697) Selling, general and administrative expenses (536,180) 89,926 12,738 37,714 (395,802)
Other Income (Expense): Other Noncurrent Assets: (Gain) Loss on disposal of other businesses and investments 9,608 (444) 9,608 (444) Operating Profit 89,954 92,407 12,738 37,714 232,813
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended Goodwill 5,370,741 4,795,856 (Gain) Loss on investment in equity securities (2,175) (2,175) Total other (expense) income, net 3,445 831 515 (8,362) (3,571)
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Intangibles, net 694,117 572,952 Stock based compensation 18,425 14,939 47,341 61,821 Earnings from Continuing Operations Before Taxes 93,399 93,238 13,253 29,352 229,242
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit: Miscellaneous 768,102 760,854 Equity in earnings of operating ventures, net (2,307) (9,174) (7,632) (8,387) Income Tax Benefit (Expense) for Continuing Operations 1,981 (22,924) (3,259) (5,823) (30,025)
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609 Noncurrent assets held for sale 27,091 1,701,690 (Gain) Losses on disposals of assets, net (1,732) 6,138 1,998 10,055 Net Earnings of the Group from Continuing Operations 95,380 70,314 9,994 23,529 199,217
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809 Total other noncurrent assets 6,860,051 7,831,352 Loss (Gain) on pension and retiree medical plan changes (34,621) 3,819 Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (6,015)
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418 $ 11,641,262 $ 12,645,795 Deferred income taxes 83,600 (14,173) 52,592 (7,374) Net Earnings from Continuing Operations attributable to Jacobs 89,365 70,314 9,994 23,529 193,202
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163) LIABILITIES AND STOCKHOLDERS' EQUITY Changes in assets and liabilities, excluding the effects of businesses acquired: Net Earnings Attributable to Discontinued Operations 435,077 2,058 2,447 (7,823) 431,759
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744) Current Liabilities: Receivables and contract assets (149,885) (144,474) (402,616) (316,386) Net earnings attributable to Jacobs $ 524,442 $ 72,372 $ 12,441 $ 15,706 $ 624,961
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915) Short-term debt $ 222,687 $ 3,172 Prepaid expenses and other current assets (41,734) 7,981 5,999 5,620 Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.51 $ 0.07 $ 0.17 $ 1.40
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596 Accounts payable 884,992 776,189 Accounts payable 74,532 120,741 67,778 138,713 Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.01 $ 0.02 $ (0.06) $ 3.13
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016) Accrued liabilities 1,673,272 1,167,002 Accrued liabilities (103,416) 28,708 (161,179) 8,083 Diluted Earnings Per Share $ 3.80 $ 0.52 $ 0.09 $ 0.11 $ 4.53
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580 Contract liabilities 506,394 442,760 Contract liabilities 361,881 1,096 419,762 34,695 Operating profit margin 2.84 % 8.83 %
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161 Current liabilities held for sale 2,103 756,570  Other deferred liabilities (80,707) (3,587) (129,468) (21,007)
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972 Total current liabilities 3,289,448 3,145,693       Other, net 11,228 4,901 (19,439) 7,967
Net Earnings Per Share: Long-term Debt 1,025,198 2,144,167           Net cash (used for) provided by operating activities (165,081) 214,746 (220,313) 268,950
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53 Other Deferred Liabilities 1,218,499 1,260,977 Cash Flows from Investing Activities:
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94 Noncurrent Liabilities Held for Sale 150,604 Additions to property and equipment (45,190) (18,563) (106,670) (63,408)
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47 Commitments and Contingencies Disposals of property and equipment and other assets 60 7,300 428
Stockholders' Equity: Distributions of capital from (contributions to) equity investees 15,310 (3,904) 7,614
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53 Capital stock: Acquisitions of businesses, net of cash acquired (575,110) (3,729) (575,110) (1,488,546)
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93                 Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none Disposals of investment in equity securities 64,708 64,708
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46                 Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—135,848,893 shares and 142,217,933 shares as of June 28, 2019 and September 28, 2018, respectively 135,849 142,218 Proceeds (payments) related to sales of businesses 2,796,734 2,796,734 3,403
Additional paid-in capital 2,634,177 2,708,839 Purchases of noncontrolling interests (1,113)
Retained earnings 4,053,626 3,809,991            Net cash provided by (used for) investing activities 2,241,202 (6,982) 2,181,945 (1,540,509)
Accumulated other comprehensive loss (763,589) (806,703) Cash Flows from Financing Activities:
Total Jacobs stockholders' equity 6,060,063 5,854,345 Net (payments) proceeds from borrowings (1,895,959) (159,814) (1,200,388) 1,402,387
Noncontrolling interests 48,054 90,009 Debt issuance costs (3,741)
Total Group stockholders' equity 6,108,117 5,944,354 Proceeds from issuances of common stock 20,198 6,952 46,143 33,588
$ 11,641,262 $ 12,645,795 Common stock repurchases (36,183) (31) (524,618) (2,982)
Taxes paid on vested restricted stock (5,870) (10,835) (26,187) (27,975)
Cash dividends, including to noncontrolling interests (25,867) (20,999) (82,257) (65,232)
Net cash provided by (used for) financing activities (1,943,681) (184,727) (1,791,048) 1,339,786
Effect of Exchange Rate Changes 15,164 (34,082) 34,300 (18,008)
Net Increase (decrease) in Cash and Cash Equivalents 147,604 (11,045) 204,884 50,219
Cash and Cash Equivalents at the Beginning of the Period 850,638 835,415 793,358 774,151
Cash and Cash Equivalents at the End of the Period 998,242 824,370 998,242 824,370
Less Cash and Cash Equivalents included in Assets held for Sale (161,666) (161,666)
Cash and Cash Equivalents of Continuing Operations at the End of the Period $ 998,242 $ 662,704 $ 998,242 $ 662,704

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands): Other Operational Information (in thousands): Balance Sheet (in thousands): Statement of Cash Flow (in thousands): Backlog (in millions): U.S. GAAP Reconciliation for the third quarter of fiscal 2019 and 2018
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding) (1) Other corporate expenses include costs that were previously allocated to the ECR segment prior to discontinued operations presentation in connection with the ECR sale in the approximate amounts of $2.0 million and $6.4 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $14.8 million and $19.2 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. Other corporate expenses also include intangibles amortization of $18.4 million and $19.3 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $55.7 million and $49.1 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. (1) Includes after-tax CH2M transaction costs and adjustments of $0.4 million, after-tax transaction costs associated with the sale of our ECR line of business of $2.4 million and after-tax transaction costs associated with the acquisition of KeyW of $9.6 million.
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended Unaudited For the Nine Months Ended Unaudited June 28, 2019 September 28, 2018 For the Three Months Ended For the Nine Months Ended June 28, 2019 June 29, 2018 Three Months Ended
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 (2) Includes gain on the settlement of the CH2M retiree medical plans of $0.0 million and $34.6 million, respectively, and the amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.5 million, respectively, for the three- and nine-month periods ended June 28, 2019, as well as amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.2 million, respectively, for the three- and nine-month periods ended June 29, 2018. Also includes revenues under the Company's TSA with WorleyParsons of $14.1 million, respectively, for the three- and nine-month periods ended June 28, 2019, for which the related costs are included in SG&A. Continuing Operations June 28, 2019 June 29, 2018 ASSETS Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 8,456 $ 7,147 June 28, 2019 (2) Includes (a) the removal of pass through revenues and costs for the BIAF line of business for the calculation of operating profit margin as a percentage of net revenue of $533.9 million, (b) the removal of amortization of intangible assets of $18.4 million, (c) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million for the month of April prior to the sale that will be reimbursed under the ECR transition services agreement (TSA) with Worley Parsons or otherwise eliminated from the ongoing operations in connection with the sale of the ECR business, (d) the allocation to discontinued operations of estimated interest expense for the month of April prior to the sale related to long-term debt that has been paid down as a result of the ECR sale of $5.8 million, (e) the add-back of depreciation relating to the ECR business that was ceased as a result of the application of held-for-sale accounting of $2.6 million, (f) the reclassification of revenues under the Company's TSA of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with this agreement, (g) other income tax adjustments of $1.5 million and (h) associated income tax expense adjustments for all the above pre-tax adjustment items.
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers: Depreciation (pre-tax) $ 67,553 $ 69,663 Current Assets: Cash Flows from Operating Activities: Buildings, Infrastructure and Advanced Facilities 14,011 12,693 Unaudited U.S. GAAP Effects ofRestructuring and OtherCharges Effects of TransactionCosts (1) OtherAdjustments(2) Adjusted
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303 Amortization of Intangibles (pre-tax) $ 55,732 $ 49,052 Cash and cash equivalents $ 998,242 $ 634,870 Net earnings attributable to the Group $ 531,064 $ 150,071 $ 723,427 $ 204,565             Total $ 22,467 $ 19,840 Revenues $ 3,169,622 $ $ $ $ 3,169,622
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613 Pass-Through Costs Included in Revenues $ 1,840,572 $ 1,603,930 Receivables and contract assets 2,779,189 2,513,934 Adjustments to reconcile net earnings to net cash flows provided by operations: Pass through revenue (533,935) (533,935)
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930) Capital Expenditures $ 97,466 $ 48,975 Prepaid expenses and other 695,810 171,096 Depreciation and amortization: Net revenue 3,169,622 (533,935) 2,635,687
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683 Current assets held for sale 2,704 1,236,684 Property, equipment and improvements 25,851 29,576 69,663 88,715 Direct cost of contracts (2,543,488) 2,481 533,935 (2,007,072)
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Total current assets 4,475,945 4,556,584 Intangible assets 18,383 22,447 56,346 58,495 Gross profit 626,134 2,481 628,615
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986 Property, Equipment and Improvements, net 305,266 257,859 (Gain) Loss on disposal of ECR business (917,697) (917,697) Selling, general and administrative expenses (536,180) 89,926 12,738 37,714 (395,802)
Other Income (Expense): Other Noncurrent Assets: (Gain) Loss on disposal of other businesses and investments 9,608 (444) 9,608 (444) Operating Profit 89,954 92,407 12,738 37,714 232,813
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended Goodwill 5,370,741 4,795,856 (Gain) Loss on investment in equity securities (2,175) (2,175) Total other (expense) income, net 3,445 831 515 (8,362) (3,571)
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Intangibles, net 694,117 572,952 Stock based compensation 18,425 14,939 47,341 61,821 Earnings from Continuing Operations Before Taxes 93,399 93,238 13,253 29,352 229,242
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit: Miscellaneous 768,102 760,854 Equity in earnings of operating ventures, net (2,307) (9,174) (7,632) (8,387) Income Tax Benefit (Expense) for Continuing Operations 1,981 (22,924) (3,259) (5,823) (30,025)
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609 Noncurrent assets held for sale 27,091 1,701,690 (Gain) Losses on disposals of assets, net (1,732) 6,138 1,998 10,055 Net Earnings of the Group from Continuing Operations 95,380 70,314 9,994 23,529 199,217
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809 Total other noncurrent assets 6,860,051 7,831,352 Loss (Gain) on pension and retiree medical plan changes (34,621) 3,819 Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (6,015)
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418 $ 11,641,262 $ 12,645,795 Deferred income taxes 83,600 (14,173) 52,592 (7,374) Net Earnings from Continuing Operations attributable to Jacobs 89,365 70,314 9,994 23,529 193,202
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163) LIABILITIES AND STOCKHOLDERS' EQUITY Changes in assets and liabilities, excluding the effects of businesses acquired: Net Earnings Attributable to Discontinued Operations 435,077 2,058 2,447 (7,823) 431,759
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744) Current Liabilities: Receivables and contract assets (149,885) (144,474) (402,616) (316,386) Net earnings attributable to Jacobs $ 524,442 $ 72,372 $ 12,441 $ 15,706 $ 624,961
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915) Short-term debt $ 222,687 $ 3,172 Prepaid expenses and other current assets (41,734) 7,981 5,999 5,620 Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.51 $ 0.07 $ 0.17 $ 1.40
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596 Accounts payable 884,992 776,189 Accounts payable 74,532 120,741 67,778 138,713 Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.01 $ 0.02 $ (0.06) $ 3.13
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016) Accrued liabilities 1,673,272 1,167,002 Accrued liabilities (103,416) 28,708 (161,179) 8,083 Diluted Earnings Per Share $ 3.80 $ 0.52 $ 0.09 $ 0.11 $ 4.53
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580 Contract liabilities 506,394 442,760 Contract liabilities 361,881 1,096 419,762 34,695 Operating profit margin 2.84 % 8.83 %
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161 Current liabilities held for sale 2,103 756,570  Other deferred liabilities (80,707) (3,587) (129,468) (21,007)
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972 Total current liabilities 3,289,448 3,145,693       Other, net 11,228 4,901 (19,439) 7,967
Net Earnings Per Share: Long-term Debt 1,025,198 2,144,167           Net cash (used for) provided by operating activities (165,081) 214,746 (220,313) 268,950
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53 Other Deferred Liabilities 1,218,499 1,260,977 Cash Flows from Investing Activities:
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94 Noncurrent Liabilities Held for Sale 150,604 Additions to property and equipment (45,190) (18,563) (106,670) (63,408)
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47 Commitments and Contingencies Disposals of property and equipment and other assets 60 7,300 428
Stockholders' Equity: Distributions of capital from (contributions to) equity investees 15,310 (3,904) 7,614
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53 Capital stock: Acquisitions of businesses, net of cash acquired (575,110) (3,729) (575,110) (1,488,546)
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93                 Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none Disposals of investment in equity securities 64,708 64,708
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46                 Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—135,848,893 shares and 142,217,933 shares as of June 28, 2019 and September 28, 2018, respectively 135,849 142,218 Proceeds (payments) related to sales of businesses 2,796,734 2,796,734 3,403
Additional paid-in capital 2,634,177 2,708,839 Purchases of noncontrolling interests (1,113)
Retained earnings 4,053,626 3,809,991            Net cash provided by (used for) investing activities 2,241,202 (6,982) 2,181,945 (1,540,509)
Accumulated other comprehensive loss (763,589) (806,703) Cash Flows from Financing Activities:
Total Jacobs stockholders' equity 6,060,063 5,854,345 Net (payments) proceeds from borrowings (1,895,959) (159,814) (1,200,388) 1,402,387
Noncontrolling interests 48,054 90,009 Debt issuance costs (3,741)
Total Group stockholders' equity 6,108,117 5,944,354 Proceeds from issuances of common stock 20,198 6,952 46,143 33,588
$ 11,641,262 $ 12,645,795 Common stock repurchases (36,183) (31) (524,618) (2,982)
Taxes paid on vested restricted stock (5,870) (10,835) (26,187) (27,975)
Cash dividends, including to noncontrolling interests (25,867) (20,999) (82,257) (65,232)
Net cash provided by (used for) financing activities (1,943,681) (184,727) (1,791,048) 1,339,786
Effect of Exchange Rate Changes 15,164 (34,082) 34,300 (18,008)
Net Increase (decrease) in Cash and Cash Equivalents 147,604 (11,045) 204,884 50,219
Cash and Cash Equivalents at the Beginning of the Period 850,638 835,415 793,358 774,151
Cash and Cash Equivalents at the End of the Period 998,242 824,370 998,242 824,370
Less Cash and Cash Equivalents included in Assets held for Sale (161,666) (161,666)
Cash and Cash Equivalents of Continuing Operations at the End of the Period $ 998,242 $ 662,704 $ 998,242 $ 662,704

 

Third Quarter Review Fiscal 3Q 2019 Fiscal 3Q 2018 Financial Highlights: Segment Information (in thousands): Other Operational Information (in thousands): Balance Sheet (in thousands): Statement of Cash Flow (in thousands): Backlog (in millions): U.S. GAAP Reconciliation for the third quarter of fiscal 2019 and 2018 Three Months Ended
After-tax restructuring and other charges ($93.2 million and $30.1 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $70 million ($0.51 per share) $22 million ($0.15 per share) (note: earnings per share amounts may not add due to rounding) (1) Other corporate expenses include costs that were previously allocated to the ECR segment prior to discontinued operations presentation in connection with the ECR sale in the approximate amounts of $2.0 million and $6.4 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $14.8 million and $19.2 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. Other corporate expenses also include intangibles amortization of $18.4 million and $19.3 million for the three-month periods ended June 28, 2019 and June 29, 2018, respectively, and $55.7 million and $49.1 million for the nine-month periods ended June 28, 2019 and June 29, 2018, respectively. (1) Includes after-tax CH2M transaction costs and adjustments of $0.4 million, after-tax transaction costs associated with the sale of our ECR line of business of $2.4 million and after-tax transaction costs associated with the acquisition of KeyW of $9.6 million. June 29, 2018
Fiscal 3Q 2019 Fiscal 3Q 2018 Change After-tax transaction costs incurred in connection with the closing of the CH2M and KeyW acquisitions ($13.3 million and $5.4 million for the fiscal 2019 and 2018 periods, respectively before income taxes) $10 million ($0.07 per share) $4 million ($0.03 per share) Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Nine Months Ended Unaudited For the Nine Months Ended Unaudited June 28, 2019 September 28, 2018 For the Three Months Ended For the Nine Months Ended June 28, 2019 June 29, 2018 Three Months Ended Unaudited U.S. GAAP Effects of Restructuringand Other Charges Effects of CH2MTransaction Costs Other Adjustments(1) Adjusted
Revenue $3.2 billion $2.9 billion $0.3 billion Other adjustments include:  (a) addback of amortization of intangible assets of $18.4 million and $19.3 million in the 2019 and 2018 periods, respectively,  (b) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million and $6.4 million in the 2019 and 2018 periods, respectively, that will be reimbursed or otherwise eliminated in connection with the sale of the ECR business,  (c) the allocation to discontinued operations of estimated interest expense amounts in 2019 and 2018 related to long-term debt that has been paid down in connection with the sale of the ECR business of $5.8 million and $16.1 million, respectively, (d) the reclassification of revenues under the Company's Transition Services Agreement (TSA) with WorleyParsons of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with the TSA during the fiscal 2019 third quarter,  (e) the add-back of charges resulting from the revaluation of certain deferred tax assets/liabilities in connection with U.S. tax reform of $5.3 million in the 2018 period and other income tax adjustments of $1.5 million in the current quarter and  (f) associated income tax expense adjustments for the above pre-tax adjustment items. $24 million ($0.17 per share) $38 million ($0.27 per share) Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 (2) Includes gain on the settlement of the CH2M retiree medical plans of $0.0 million and $34.6 million, respectively, and the amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.5 million, respectively, for the three- and nine-month periods ended June 28, 2019, as well as amortization of deferred financing fees related to the CH2M acquisition of $0.5 million and $1.2 million, respectively, for the three- and nine-month periods ended June 29, 2018. Also includes revenues under the Company's TSA with WorleyParsons of $14.1 million, respectively, for the three- and nine-month periods ended June 28, 2019, for which the related costs are included in SG&A. Continuing Operations June 28, 2019 June 29, 2018 ASSETS Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 8,456 $ 7,147 June 28, 2019 (2) Includes (a) the removal of pass through revenues and costs for the BIAF line of business for the calculation of operating profit margin as a percentage of net revenue of $533.9 million, (b) the removal of amortization of intangible assets of $18.4 million, (c) the allocation to discontinued operations of estimated stranded corporate costs of $2.0 million for the month of April prior to the sale that will be reimbursed under the ECR transition services agreement (TSA) with Worley Parsons or otherwise eliminated from the ongoing operations in connection with the sale of the ECR business, (d) the allocation to discontinued operations of estimated interest expense for the month of April prior to the sale related to long-term debt that has been paid down as a result of the ECR sale of $5.8 million, (e) the add-back of depreciation relating to the ECR business that was ceased as a result of the application of held-for-sale accounting of $2.6 million, (f) the reclassification of revenues under the Company's TSA of $14.1 million included in other income for U.S. GAAP reporting purposes to SG&A and the exclusion of $3.2 million in remaining unreimbursed costs associated with this agreement, (g) other income tax adjustments of $1.5 million and (h) associated income tax expense adjustments for all the above pre-tax adjustment items. Revenues $ 2,933,623 $ $ $ $ 2,933,623
Net Revenue $2.6 billion $2.4 billion $0.2 billion Adjusted EPS from Continuing Operations $193 million ($1.40 per share) $178 million ($1.24 per share) For the Three Months Ended For the Nine Months Ended Revenues from External Customers: Depreciation (pre-tax) $ 67,553 $ 69,663 Current Assets: Cash Flows from Operating Activities: Buildings, Infrastructure and Advanced Facilities 14,011 12,693 Unaudited U.S. GAAP Effects ofRestructuring and OtherCharges Effects of TransactionCosts (1) OtherAdjustments(2) Adjusted Pass through revenue (583,423) (583,423)
GAAP Net Earnings from Continuing Operations $89 million $113 million -$24 million Unaudited June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Aerospace, Technology and Nuclear $ 1,156,488 $ 1,021,523 $ 3,251,024 $ 2,656,303 Amortization of Intangibles (pre-tax) $ 55,732 $ 49,052 Cash and cash equivalents $ 998,242 $ 634,870 Net earnings attributable to the Group $ 531,064 $ 150,071 $ 723,427 $ 204,565             Total $ 22,467 $ 19,840 Revenues $ 3,169,622 $ $ $ $ 3,169,622 Net revenue 2,933,623 (583,423) 2,350,200
GAAP Earnings Per Diluted Share (EPS) from Continuing Operations $0.65 $0.79 -$0.14 Revenues $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Buildings, Infrastructure and Advanced Facilities 2,013,134 1,912,100 6,093,981 4,931,613 Pass-Through Costs Included in Revenues $ 1,840,572 $ 1,603,930 Receivables and contract assets 2,779,189 2,513,934 Adjustments to reconcile net earnings to net cash flows provided by operations: Pass through revenue (533,935) (533,935) Direct cost of contracts (2,325,028) 2,576 583,423 (1,739,029)
Adjusted Net Earnings from Continuing Operations $193 million $178 million $15 million Direct cost of contracts (2,543,488) (2,325,028) (7,533,511) (6,035,598) Pass Through Revenue (533,935) (583,423) (1,840,572) (1,603,930) Capital Expenditures $ 97,466 $ 48,975 Prepaid expenses and other 695,810 171,096 Depreciation and amortization: Net revenue 3,169,622 (533,935) 2,635,687 Gross profit 608,595 2,576 611,171
Adjusted EPS from Continuing Operations $1.40 $1.24 $0.16 Gross profit 626,134 608,595 1,811,494 1,552,318 Buildings, Infrastructure and Advanced Facilities Net Revenue $ 1,479,199 $ 1,328,677 $ 4,253,409 $ 3,327,683 Current assets held for sale 2,704 1,236,684 Property, equipment and improvements 25,851 29,576 69,663 88,715 Direct cost of contracts (2,543,488) 2,481 533,935 (2,007,072) Selling, general and administrative expenses (446,083) 27,967 4,422 25,699 (387,995)
Selling, general and administrative expenses (536,180) (446,083) (1,505,731) (1,325,722) Total Revenue $ 3,169,622 $ 2,933,623 $ 9,345,005 $ 7,587,916 Total current assets 4,475,945 4,556,584 Intangible assets 18,383 22,447 56,346 58,495 Gross profit 626,134 2,481 628,615 Operating Profit 162,512 30,543 4,422 25,699 223,176
Operating Profit 89,954 162,512 305,763 226,596 Net Revenue $ 2,635,687 $ 2,350,200 $ 7,504,433 $ 5,983,986 Property, Equipment and Improvements, net 305,266 257,859 (Gain) Loss on disposal of ECR business (917,697) (917,697) Selling, general and administrative expenses (536,180) 89,926 12,738 37,714 (395,802) Total other (expense) income, net (15,879) (466) 933 16,069 657
Other Income (Expense): Other Noncurrent Assets: (Gain) Loss on disposal of other businesses and investments 9,608 (444) 9,608 (444) Operating Profit 89,954 92,407 12,738 37,714 232,813 Earnings from Continuing Operations Before Taxes 146,633 30,077 5,355 41,768 223,833
Interest income 3,398 1,277 7,172 6,896 For the Three Months Ended For the Nine Months Ended Goodwill 5,370,741 4,795,856 (Gain) Loss on investment in equity securities (2,175) (2,175) Total other (expense) income, net 3,445 831 515 (8,362) (3,571) Income Tax Benefit (Expense) for Continuing Operations (31,174) (7,433) (1,483) (3,478) (43,568)
Interest expense (18,978) (23,788) (73,727) (50,107) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Intangibles, net 694,117 572,952 Stock based compensation 18,425 14,939 47,341 61,821 Earnings from Continuing Operations Before Taxes 93,399 93,238 13,253 29,352 229,242 Net Earnings of the Group from Continuing Operations 115,459 22,644 3,872 38,290 180,265
Miscellaneous income (expense), net 19,025 6,632 58,211 5,195 Segment Operating Profit: Miscellaneous 768,102 760,854 Equity in earnings of operating ventures, net (2,307) (9,174) (7,632) (8,387) Income Tax Benefit (Expense) for Continuing Operations 1,981 (22,924) (3,259) (5,823) (30,025) Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (2,123) (577) (2,700)
Total other (expense) income, net 3,445 (15,879) (8,344) (38,016) Aerospace, Technology and Nuclear $ 76,306 $ 69,085 $ 222,289 $ 182,609 Noncurrent assets held for sale 27,091 1,701,690 (Gain) Losses on disposals of assets, net (1,732) 6,138 1,998 10,055 Net Earnings of the Group from Continuing Operations 95,380 70,314 9,994 23,529 199,217 Net Earnings from Continuing Operations attributable to Jacobs 113,336 22,067 3,872 38,290 177,565
Earnings from Continuing Operations Before Taxes 93,399 146,633 297,419 188,580 Buildings, Infrastructure and Advanced Facilities 183,318 163,193 515,465 374,809 Total other noncurrent assets 6,860,051 7,831,352 Loss (Gain) on pension and retiree medical plan changes (34,621) 3,819 Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (6,015) Net Earnings Attributable to Discontinued Operations 36,886 12,683 (14,800) 34,769
Income Tax Benefit (Expense) for Continuing Operations 1,981 (31,174) (12,829) (110,230) Total Segment Operating Profit 259,624 232,278 737,754 557,418 $ 11,641,262 $ 12,645,795 Deferred income taxes 83,600 (14,173) 52,592 (7,374) Net Earnings from Continuing Operations attributable to Jacobs 89,365 70,314 9,994 23,529 193,202 Net earnings attributable to Jacobs $ 150,222 $ 34,750 $ 3,872 $ 23,490 $ 212,334
Net Earnings of the Group from Continuing Operations 95,380 115,459 284,590 78,350 Other Corporate Expenses (1) (64,525) (34,802) (185,674) (131,163) LIABILITIES AND STOCKHOLDERS' EQUITY Changes in assets and liabilities, excluding the effects of businesses acquired: Net Earnings Attributable to Discontinued Operations 435,077 2,058 2,447 (7,823) 431,759 Diluted Net Earnings from Continuing Operations Per Share $ 0.79 $ 0.15 $ 0.03 $ 0.27 $ 1.24
Net Earnings of the Group from Discontinued Operations 435,684 34,612 438,837 126,215 Restructuring and Other Charges (92,407) (30,544) (233,579) (122,744) Current Liabilities: Receivables and contract assets (149,885) (144,474) (402,616) (316,386) Net earnings attributable to Jacobs $ 524,442 $ 72,372 $ 12,441 $ 15,706 $ 624,961 Diluted Net Earnings from Discontinued Operations Per Share $ 0.26 $ 0.09 $ $ (0.10) $ 0.24
Net Earnings of the Group 531,064 150,071 723,427 204,565 Transaction Costs (12,738) (4,420) (12,738) (76,915) Short-term debt $ 222,687 $ 3,172 Prepaid expenses and other current assets (41,734) 7,981 5,999 5,620 Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.51 $ 0.07 $ 0.17 $ 1.40 Diluted Earnings Per Share $ 1.05 $ 0.24 $ 0.03 $ 0.16 $ 1.48
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations (6,015) (2,123) (15,578) (5,539) Total U.S. GAAP Operating Profit 89,954 162,512 305,763 226,596 Accounts payable 884,992 776,189 Accounts payable 74,532 120,741 67,778 138,713 Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.01 $ 0.02 $ (0.06) $ 3.13 Operating profit margin 5.54 % 9.50 %
Net Earnings Attributable to Jacobs from Continuing Operations 89,365 113,336 269,012 72,811 Total Other (Expense) Income, net (2) 3,445 (15,879) (8,344) (38,016) Accrued liabilities 1,673,272 1,167,002 Accrued liabilities (103,416) 28,708 (161,179) 8,083 Diluted Earnings Per Share $ 3.80 $ 0.52 $ 0.09 $ 0.11 $ 4.53
Net (Earnings) Losses Attributable to Noncontrolling Interests from Discontinued Operations (607) 2,274 (2,195) 1,946 Earnings from Continuing Operations Before Taxes $ 93,399 $ 146,633 $ 297,419 $ 188,580 Contract liabilities 506,394 442,760 Contract liabilities 361,881 1,096 419,762 34,695 Operating profit margin 2.84 % 8.83 %
Net Earnings Attributable to Jacobs from Discontinued Operations $ 435,077 $ 36,886 $ 436,642 $ 128,161 Current liabilities held for sale 2,103 756,570  Other deferred liabilities (80,707) (3,587) (129,468) (21,007)
Net Earnings Attributable to Jacobs $ 524,442 $ 150,222 $ 705,654 $ 200,972 Total current liabilities 3,289,448 3,145,693       Other, net 11,228 4,901 (19,439) 7,967
Net Earnings Per Share: Long-term Debt 1,025,198 2,144,167           Net cash (used for) provided by operating activities (165,081) 214,746 (220,313) 268,950
Basic Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.93 $ 0.53 Other Deferred Liabilities 1,218,499 1,260,977 Cash Flows from Investing Activities:
Basic Net Earnings from Discontinued Operations Per Share $ 3.18 $ 0.26 $ 3.14 $ 0.94 Noncurrent Liabilities Held for Sale 150,604 Additions to property and equipment (45,190) (18,563) (106,670) (63,408)
Basic Earnings Per Share $ 3.83 $ 1.05 $ 5.07 $ 1.47 Commitments and Contingencies Disposals of property and equipment and other assets 60 7,300 428
Stockholders' Equity: Distributions of capital from (contributions to) equity investees 15,310 (3,904) 7,614
Diluted Net Earnings from Continuing Operations Per Share $ 0.65 $ 0.79 $ 1.92 $ 0.53 Capital stock: Acquisitions of businesses, net of cash acquired (575,110) (3,729) (575,110) (1,488,546)
Diluted Net Earnings from Discontinued Operations Per Share $ 3.15 $ 0.26 $ 3.11 $ 0.93                 Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none Disposals of investment in equity securities 64,708 64,708
Diluted Earnings Per Share $ 3.80 $ 1.05 $ 5.02 $ 1.46                 Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—135,848,893 shares and 142,217,933 shares as of June 28, 2019 and September 28, 2018, respectively 135,849 142,218 Proceeds (payments) related to sales of businesses 2,796,734 2,796,734 3,403
Additional paid-in capital 2,634,177 2,708,839 Purchases of noncontrolling interests (1,113)
Retained earnings 4,053,626 3,809,991            Net cash provided by (used for) investing activities 2,241,202 (6,982) 2,181,945 (1,540,509)
Accumulated other comprehensive loss (763,589) (806,703) Cash Flows from Financing Activities:
Total Jacobs stockholders' equity 6,060,063 5,854,345 Net (payments) proceeds from borrowings (1,895,959) (159,814) (1,200,388) 1,402,387
Noncontrolling interests 48,054 90,009 Debt issuance costs (3,741)
Total Group stockholders' equity 6,108,117 5,944,354 Proceeds from issuances of common stock 20,198 6,952 46,143 33,588
$ 11,641,262 $ 12,645,795 Common stock repurchases (36,183) (31) (524,618) (2,982)
Taxes paid on vested restricted stock (5,870) (10,835) (26,187) (27,975)
Cash dividends, including to noncontrolling interests (25,867) (20,999) (82,257) (65,232)
Net cash provided by (used for) financing activities (1,943,681) (184,727) (1,791,048) 1,339,786
Effect of Exchange Rate Changes 15,164 (34,082) 34,300 (18,008)
Net Increase (decrease) in Cash and Cash Equivalents 147,604 (11,045) 204,884 50,219
Cash and Cash Equivalents at the Beginning of the Period 850,638 835,415 793,358 774,151
Cash and Cash Equivalents at the End of the Period 998,242 824,370 998,242 824,370
Less Cash and Cash Equivalents included in Assets held for Sale