Jacobs Solutions Inc. · NYSE:J
Jacobs Solutions — Q1 2020 Earnings Presentation
22 slides from Jacobs Solutions's earnings presentation, Feb 4, 2020
Slide 1: Fiscal First Quarter Earnings Conference Call
Fiscal First Quarter Earnings Conference Call February 4, 2020
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures Pro Forma Figures Certain statements contained in this presentation constitute To supplement the financial results presented in accordance with During this presentation, we may discuss comparisons of current forward-looking
Slide 3: Today's agenda
Today’s agenda Business Review ▪ Financial and Strategic Highlights ▪ Creating a More Sustainable World ▪ Line of Business Review Financial Review ▪ Q1 Results ▪ Segment Results ▪ Acquisition and Divestiture Update ▪ Balance Sheet and Cash Flow Outlook and Summary 3
Slide 4: Becoming 'A Company Like No Other'
Becoming 'A Company Like No Other' Transformed Portfolio Positioned for Sustained Growth ▪ Diversified multi-decade growth trends underpin long-term outlook ▪ Strategy combines global scale, deep expertise and enhanced brand awareness ▪ Culture becoming a unique competitive advantage Strong Financia
Slide 5: Jacobs: Creating a more connected, sustainable world
Jacobs: Creating a more connected, sustainable world Thought Leadership Solutions in Action ▪ Aligned to UN Sustainability Goals ▪ Global Sustainability calls ▪ SuedLink wind and solar power transmission system in Germany ▪ UN Global Compact signatory ▪ World Economic Forum Annual Meeting at Davos ▪
Slide 6: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot Unique Delivery Model (TTM including KeyW) ▪ One of the largest diversified government services providers U.S. / International 90% / 10% ▪ Leveraging strong technical expertise, localized delivery model and efficient Government ~88% cost
Slide 7: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (Net Revenue Q1 2020) U.S./International 64% / 36% Growth Underpinned by Multiple Secular Trends Public / Private Sector 59% / 41% ▪ Climate change resiliency driving long-term opportunities Reimbursable and Lower RIsk Fixed ~89% Price Ser
Slide 8: Fiscal 2020 Q1 results
Fiscal 2020 Q1 results Revenue increased 9.0% y/y and Pro Forma Net Revenue increased 5% y/y GAAP Operating Profit (OP) of $151M (+34%) and Operating Profit Margin of 4.5% (+80 bps) Adj. OP of $237M (+28%) and Net Revenue Adj. OP Margin of 8.9% (+120 bps) GAAP Net Earnings of $179 million and EPS fr
Slide 9: Segment financials
Segment financials $’s in millions Q1 Q1 Y/Y 2019 2020 Critical Mission Solutions Operating Profit 72 90 25% as a % of revenue 7.0% 7.6% +60 bps People & Places Solutions Operating Profit 159 178 12% as a % of net revenue 11.6% 12.1% +50 bps Adjusted Unallocated Corporate Costs1 (46) (32) Adjusted O
Slide 10: M&A and divestiture update
M&A and divestiture update ECR Update ▪ Incurred $206M of ~$230M transaction, separation and restructuring costs ▪ On track to complete majority of separation and restructuring costs by end of Q2 KeyW Acquisition Update ▪ Achieved majority of $15M in run-rate synergies at end of Q1 ▪ Incurred $22M i
Slide 11: Balance sheet and cash flow
Balance sheet and cash flow Annual Free Cash Flow (FCF) Generation Remains On Track ▪ Q1 FCF improved from year ago; impacted by continued restructuring outflows ▪ Q1 DSOs increased; confident in ability to improve during fiscal year 2020 Q1 Leverage Metrics ▪ On track to deliver $450+ million of to
Slide 12: Focused on delivering superior Shareholder Value
Focused on delivering superior Shareholder Value ▪ Inspire a high-performance culture ▪ Capture growth opportunities through innovation ▪ Deliver strong free cash flow generation ▪ Maintain a disciplined capital allocation that drives value creation FY20 Financial Outlook Maintaining outlook of adj.
Slide 13: To create a more connected, sustainable world.
To create a more connected, sustainable world. We do things We challenge the We aim We live right. accepted. higher. inclusion. 13
Slide 14: Jacobs: Delivering innovative solutions & disciplined execution
Jacobs: Delivering innovative solutions & disciplined execution ($ in billions) Reimbursable and Net Revenue TTM Lower Risk Fixed Public/Private Pro forma for KeyW Gross Backlog Q1 U.S./Int’l Mix Talent Base Price Services Sector 75%/25% ~52,000 93% 69%/31% ▪ Increasing portfolio mix in high value s
Slide 15: Recast consolidated financials
Recast consolidated financials PF Q1 $’s in millions Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 20181 Critical Mission Solutions Backlog 6,641 7,174 7,148 7,130 7,130 7,158 7,285 8,393 8,460 8,460 8,473 Revenue 842 924 1,021 1,069 3,856 1,035 1,060 1,156 1,300 4,
Slide 16: Recast consolidated financials
Recast consolidated financials $’s in millions Q1 2018 1 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Backlog 18,910 19,262 19,840 19,955 19,955 20,335 20,713 22,404 22,569 22,569 22,671 Revenue 2,746 2,870 2,934 2,992 11,541 3,084 3,092 3,170 3,393 12,738 3,360 Ne
Slide 17: Other operational metrics from continuing operations
Other operational metrics from continuing operations $’s in thousands Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Depreciation (pre-tax) 25,607 1 26,764 24,423 21,567 98,361 1 18,211 23,491 25,851 20,508 88,061 22,152 Amortization of Intangibles (pre-tax)
Slide 18: Non GAAP financial measures
Non GAAP financial measures Three Months Ended The following tables reconcile the U.S. GAAP values of December 27, 2019 net revenue, net earnings, EPS, operating profit and Effects of Effects of operating profit margin to the corresponding "adjusted" Restructuring and Transaction Costs Other Adjustm
Slide 19: Non GAAP financial measures
Non GAAP financial measures Three Months Ended The following tables reconcile the U.S. GAAP values of net December 28, 2018 revenue, net earnings, EPS, operating profit and operating Effects of Effects of profit margin to the corresponding "adjusted" amounts. For Restructuring and Transaction Costs
Slide 20: Reconciliation of net earnings from continuing operations to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA Reconciliation of Net Earnings from Coninuing Operations Attributable to Jacobs to Adjusted EBITDA Three Months Ended 12/27/2019 Adj Net earnings from Continuing Operations (1) $ 161,728 Adj. Income T
Slide 21: Non-GAAP financial measures (cont'd)
Non-GAAP financial measures (cont’d) Net revenue is calculated excluding pass-through revenue of the Company’s People & Places Solutions segment from the Company’s revenue from continuing operations. Adjusted net earnings from continuing operations, adjusted EPS from continuing operations, adjusted
Slide 22: Nice os
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