Jacobs Solutions Inc. · NYSE:J
Jacobs Solutions — Q1 2021 Earnings Presentation
24 slides from Jacobs Solutions's earnings presentation, Feb 9, 2021
Slide 1: Fiscal First Quarter 2021 Earnings Conference Call
Fiscal First Quarter 2021 Earnings Conference Call February 9, 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures Certain statements contained in this presentation constitute forward-looking statements as such term is defined in To supplement the financial results presented in accordance with generally accepted accounting Section 27A of
Slide 3: Today's agenda
Today’s agenda Overview ▪ Strategy and performance update ▪ Sustainability commitments Lines of business review ▪ Critical Mission Solutions ▪ People & Places Solutions Financial review ▪ Q1 Fiscal 2021 results ▪ Focus 2023 and integration update ▪ Balance sheet and cash flow Outlook & Summary 3
Slide 4: Strategy and Performance Update
Strategy and Performance Update Compelling shareholder investment thesis ▪ Transformed culture that inspires through a common purpose and strong core values ▪ Strategy combines global scale, deep expertise and enhanced brand awareness ▪ Positioned to profitably capture higher value thematic growth o
Slide 5: Delivering on ESG commitments
Delivering on ESG commitments Jacobs' Climate Action Plan Achieved net carbon zero and 100% renewable energy in FY20 Carbon reduction targets approved by Science Based Target Initiative COP26 engagement to raise awareness, inspire and motivate collective action ▪ Pledge to Action campaign inviting p
Slide 6: Providing solutions and technologies that address decarbonization and adaptation challenges
Providing solutions and technologies that address the most critical decarbonization and adaptation challenges Climate impacts . . . Agriculture Water Health Jacobs Solutions Energy Forestry Biodiversity Coastal Zones Fisheries Tourism Renewable Energy & Clean Power Energy Efficiency & Demand Respons
Slide 7: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot (TTM including Buffalo Group and Wood Nuclear) Demonstrated resilient base and strong pipeline of innovative solutions U.S. / International 85% / 15% ▪ Multi-year enterprise contracts provide long-term stability Government ~88% ▪ High-va
Slide 8: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (Net Revenue Q1 2021) Executing against high-value opportunities U.S./International 65% / 35% ▪ Deep domain expertise at scale across markets Public / Private Sector 58% / 42% Reimbursable and Lower Risk Fixed ▪ Global delivery model enhan
Slide 9: Fiscal 2021 Q1 results
Fiscal 2021 Q1 results Revenue increased 1% y/y and Pro Forma Net Revenue flat y/y Jacobs Mango One Satellite Successful launch marks a new era for Jacobs in advanced, affordable space radar payloads. GAAP Operating Profit (OP) of $214M (+41%) and OP Margin of 6.3% (+180 bps) Adj. OP of $259M (+10%)
Slide 10: Segment financials
Segment financials $’s in millions Q1 Q1 Y/Y 2020 2021 Critical Mission Solutions Operating Profit 90 110 22% as a % of revenue 7.6% 8.5% 90 bps People & Places Solutions Operating Profit 178 196 10% as a % of net revenue 12.1% 13.7% 160 bps Adjusted Unallocated Corporate Costs (32) (47) (15) Adjust
Slide 11: Focus 2023 and integration update
Focus 2023 and integration update Focus 2023: Enhancing Operations for Next Stage of Growth ▪ Incurred ~$10M charge in Q1 2021 related to Focus 2023 ▪ ~$30M of cash flow impact in Q1 The Buffalo Group on track to deliver against targets ▪ Expect $0.08 to $0.10 of adj. EPS accretion for FY21 Strong P
Slide 12: Balance sheet and cash flow
Balance sheet and cash flow Q1 Leverage Metrics $ billions FY21 Q1 Positive cash flow generation for Q1 2021 ▪ Q1 DSOs down 3 days y/y due to focus on improving collections Q1 Net Debt Position $1.0B*** ▪ Q1 cash flow from operations $113 million Worley equity ownership as of 1/1 $455M ▪ Q1 reported
Slide 13: Outlook & Summary
Outlook & Summary Underlying FY21 assumptions Additional Metrics ▪ Fiscal 2021 outlook reflects accelerating awards and $ billions revenue burn in 2H as customers adjust and prioritize spending under new U.S. administration Q1 FY21 share count 131M Q1 FY21 effective Tax Rate ~24% FY21 Outlook ~1% of
Slide 14: Performance through our people
Performance through our people We do things right. We challenge the accepted. We aim higher. We live inclusion. 14
Slide 15: Environmental, Social and Governance (ESG) summary
Environmental, Social and Governance (ESG) summary Jacobs ESG Investor Page 2020 ESG Data Disclosure for Analysts ▪ Achieved 100% renewable energy for Water Business Overview our operations in 2020. ▪ Achieved net zero carbon for our Environmental and PFAS Overview operations and business travel in
Slide 16: Delivering sustainable solutions
Delivering sustainable solutions Member of Dow Jones Sustainability™ North America Index PFAS Remediation Hydrogen Economy Climate Action Plan Value Chain World’s First Field-scale Biogeochemical Jacobs and Yarra Valley Water: White Paper Meridian Water, North London: £7bn Western Digital: Global En
Slide 17: Jacobs: Delivering innovative solutions & disciplined execution
Jacobs: Delivering innovative solutions & disciplined execution Q1 Fiscal 2021 ($ in billions) Reimbursable and Net Revenue TTM Gross Backlog Lower Risk Fixed As Reported As Reported U.S./Int’l Mix Talent Base Price Services Public Sector 73%/27% ~55,000 94% 73% ▪ Increasing portfolio mix in high va
Slide 18: Recast consolidated financials
Recast consolidated financials Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 $’s in millions 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 Critical Mission Solutions Backlog 7,158 7,285 8,393 8,460 8,460 8,473 9,135 9,066 9,104 9,104 9,683 Revenue 1,035 1,060 1,156 1,300 4,551 1,182 1,243 1,211 1,329 4,
Slide 19: Recast consolidated financials
Recast consolidated financials Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 $’s in millions 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 Backlog 20,335 20,713 22,404 22,569 22,569 22,671 23,291 23,674 23,818 23,818 25,105 Revenue 3,084 3,092 3,170 3,393 12,738 3,360 3,427 3,260 3,520 13,567 3,382 Net
Slide 20: Other operational metrics from continuing operations
Other operational metrics from continuing operations Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $’s in thousands FY 2019 FY 2020 2019 2019 2019 2019 2020 2020 2020 2020 2021 Depreciation (pre-tax) 18,211 23,491 25,851 20,508 88,061 22,152 22,566 22,276 24,076 91,070 22,989 Amortization of Intangibles 18,671 18,678
Slide 21: Non GAAP financial measures
Non GAAP financial measures Three Months Ended The following tables reconcile the U.S. GAAP values of Unaudited January 1, 2021 net revenue, net earnings, EPS, operating profit and operating profit margin to the corresponding Effects of "adjusted" amounts. For the comparable periods Restructuring, p
Slide 22: Non GAAP financial measures
Non GAAP financial measures The following tables reconcile the U.S. GAAP values of net revenue, net earnings, EPS, operating profit and operating profit margin to the corresponding "adjusted" amounts. For Three Months Ended the comparable periods presented below, such adjustments consist of amounts
Slide 23: Reconciliation of net earnings to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA Three Months Ended Three Months Ended 12/27/2019 1/1/2021 Adj Net earnings from Continuing Operations (1) $ 161,728 $ 184,449 Adj. Income Tax Expense for Continuing Operations (1) (63,281) (60,741) Ad
Slide 24: 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