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Jacobs Engineering Group, Inc.$76.78($.70)(.90%)

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 Jacobs Engineering Group Inc. Reports Earnings for Fiscal 2017
   Tuesday, November 21, 2017 6:40:00 AM ET

Jacobs Engineering Group Inc. (JEC ) today announced its financial results for the fourth quarter and fiscal year ended September 29, 2017.

Fiscal 2017 Highlights:

-- Q4 2017 net earnings of $94.1 million, or $0.78 per diluted share, and fiscal 2017 net earnings of $293.7 million, or $2.42 per diluted share;

-- Q4 2017 adjusted net earnings of $118.3 million, or $0.98 per diluted share, and fiscal 2017 adjusted net earnings of $392.2 million, or $3.24 per diluted share;

-- Positive improvement in sequential revenue performance for the quarter (up 5% over third quarter);

-- Record high backlog of $19.8 billion at year end, up $1.2 billion vs. prior quarter and over $1.0 billion a year ago; total professional services backlog is up $581 million from year end 2016;

-- Continued strong gross margin performance in Q4, contributing to 160 basis point annual improvement in 2017;

-- Continued strong cash flow from operations of $194 million in the quarter, resulting in cash flow from operations totaling $575 million for the year; and

-- On track to close CH2M acquisition mid-December 2017.

Commenting on the results for the fourth quarter and fiscal year 2017, Steve Demetriou, Jacobs Chairman and CEO, said, "I am pleased with the continued momentum and performance in our final quarter of fiscal 2017. Results included sequential revenue growth, a significant increase in backlog, and strong margin performance, all of which were aligned with our strategic initiatives outlined in December of last year. This organic growth momentum combined with the previously announced acquisition of CH2M will further strengthen our position as a global leader in providing innovative solutions to our clients. Importantly, we remain confident that we will close the CH2M transaction before the end of the year."

Kevin Berryman, Jacobs CFO, added, "Our fourth quarter and full year results demonstrate our success in our first year implementation of our strategic plan. Growth is gaining traction, margin has improved and cash flow has continued to be strong. We believe that our positive momentum will continue into fiscal year 2018, with expected adjusted EPS (excluding impacts from the CH2M acquisition) in the range of $3.25-$3.60."

Fourth Quarter Review

Jacobs reported net earnings of $94.1 million, or $0.78 per diluted share, on revenues of $2.7 billion for the fourth quarter ended September 29, 2017. This compares to net earnings of $29.6 million, or $0.24 per diluted share, on revenues of $2.6 billion for the fourth quarter ended September 30, 2016.

Jacobs’ net earnings for the fourth fiscal quarter of 2017 included approximately $24.2 million, or $0.20 per diluted share, in after tax charges comprised of:

-- $13.6 million, or $0.11 per diluted share, in after-tax Restructuring and other charges, driven primarily by an acceleration in restructuring activities associated with the Company’s announced definitive agreement to acquire CH2M and, consistent with previous guidance, final charges recognized in connection with the 2015 Restructuring, which was completed this quarter; and

-- after-tax charges of $10.6 million, or $0.09 per diluted share, in professional fees and related costs associated with the CH2M acquisition.

Jacobs’ net earnings for fourth fiscal quarter of 2016 results included approximately $63 million, or $0.53 per diluted share, in after-tax restructuring and other charges including:

-- after-tax charges of $36 million, or $0.30 per diluted share, in connection with the 2015 Restructuring;

-- additional restructuring charges of $17 million, or $0.14 per diluted share, as a result of our strategic decision to exit our French operation and divest our French subsidiary; and

-- a non-cash write-down on an equity investment of $10 million, or $0.09 per diluted share.

Excluding the items mentioned above, Jacobs’ adjusted net earnings for the fourth quarter ended September 29, 2017 totaled $118.3 million, or $0.98 per diluted share, favorable in comparison to $93.1 million, or $0.77 per diluted share, for the corresponding period for 2016.

Our fourth quarter U.S. GAAP and adjusted results include one-time net tax and tax related benefit items of $8.0 million, or $0.07 per diluted share, for fourth quarter 2017, and $4.1 million, or $0.03 per diluted share, in net tax benefit and other items for fourth quarter fiscal 2016.

Fiscal Year Review

For the fiscal year ended September 29, 2017, the company reported net earnings of $293.7 million, or $2.42 per diluted share, on revenues of $10.0 billion. This compares to net earnings of $210.5 million, or $1.73 per diluted share, on revenues of $11.0 billion for the prior fiscal year.

On an annual basis, the combined impact of the Restructuring and other charges and the CH2M acquisition related costs was $98.5 million, or $0.82 per diluted share, for 2017. The Restructuring and other charges for 2016 amounted to $163.1 million, or $1.35 per diluted share.

On an annual basis, our adjusted net earnings excluding these items amounted to $392.2 million after tax, or $3.24 per diluted share, for fiscal 2017 and $373.6 million, or $3.08 per diluted share, for fiscal 2016.

For the full fiscal year 2017 and 2016, total one-time net benefits from tax and other items included in our U.S. GAAP and adjusted results amounted to $12.0 million after tax, or $0.10 per diluted share, and $18.7 million after tax, or $0.16 per diluted share, respectively.

Jacobs is hosting a conference call at 9:00 A.M. CT on Tuesday, November 21, 2017, which it is webcasting live on the internet at www.jacobs.com.

Jacobs is one of the world’s largest and most diverse providers of full-spectrum technical, professional and construction services for industrial, commercial and government organizations globally. The Company employs over 54,000 people and operates in more than 25 countries around the world. For more information, visit www.jacobs.com.

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, including statements regarding whether and when the proposed transaction with CH2M will be consummated and the anticipated benefits thereof. 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. The potential risks and uncertainties include, among others, the possibility that CH2M may be unable to obtain required stockholder approval or that other conditions to closing the transaction may not be satisfied, such that the transaction will not close or that the closing may be delayed; general economic conditions; the transaction may involve unexpected costs, liabilities or delays; risks that the transaction disrupts current plans and operations of the parties to the transaction; the ability to recognize the benefits of the transaction; the amount of the costs, fees, expenses and charges related to the transaction the outcome of any legal proceedings related to the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement. 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 period ended September 30, 2016, and when filed with the Securities and Exchange Commission (the "SEC"), our Annual Report on Form 10-K for the year ended September 29, 2017, 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, as well as the Company’s other filings with the Securities and Exchange Commission. Neither the Company nor CH2M is 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.

Financial Highlights:

Results of Operations (in thousands, except per-share data):

                                                                                                                            Three Months Ended                                                                                                                           Year Ended
                                                                                                                             ----------------------------------------------------------------------------------------------------------------------------------                                                                 ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    September 29, 2017                       September 30, 2016                                                                               September 29, 2017                      September 30, 2016
                                                                                                                             --------------------------------                                                                  --------------------------------                                                                 --------------------------------                                                                 --------------------------------
Revenues                                                                                                                                        $  2,653,865                                                                                      $  2,640,587                                                                                     $ 10,022,788                                                                                     $ 10,964,157
Costs and Expenses:
   Direct cost of contracts                                                                                                                       (2,179,575 )                                                                                      (2,208,895 )                                                                                     (8,250,536 )                                                                                     (9,196,326 )
   Selling, general and administrative expenses                                                                                  (367,298 )                                                                     (348,881 )                                                                  (1,379,983 )                                                                  (1,429,233 )
                                                                                                                             -------------------- ----------                                                                   -------------------- ----------                                                                  -------------------- ----------                                                                  -------------------- ----------
Operating Profit                                                                                                                                     106,992                                                                                            82,811                                                                                          392,269                                                                                          338,598
Other Income (Expense):
   Interest income                                                                                                                                     3,051                                                                                             2,740                                                                                            8,748                                                                                            7,848
   Interest expense                                                                                                                                     (708 )                                                                                          (4,945 )                                                                                        (12,035 )                                                                                        (15,260 )
   Gain/(Loss) on disposal of business and investments                                                                                                10,880                                                                                           (41,410 )                                                                                         10,880                                                                                          (41,410 )
   Miscellaneous expense, net                                                                                                        (766 )                                                                       (3,523 )                                                                      (6,645 )                                                                      (3,053 )
                                                                                                                             -------------------- ----------                                                                   -------------------- ----------                                                                  -------------------- ----------                                                                  -------------------- ----------
   Total other income (expense), net                                                                                               12,457                                                                        (47,138 )                                                                         948                                                                       (51,875 )
                                                                                                                             -------------------- ----------                                                                   -------------------- ----------                                                                  -------------------- ----------                                                                  -------------------- ----------
Earnings Before Taxes                                                                                                                                119,449                                                                                            35,673                                                                                          393,217                                                                                          286,723
Income Tax Expense                                                                                                                (26,021 )                                                                       (5,790 )                                                                    (105,842 )                                                                     (72,208 )
                                                                                                                             -------------------- ----------                                                                   -------------------- ----------                                                                  -------------------- ----------                                                                  -------------------- ----------
Net Earnings of the Group                                                                                                                             93,428                                                                                            29,883                                                                                          287,375                                                                                          214,515
Net Earnings (Loss) Attributable to Non-controlling Interests                                                                         714                                                                           (239 )                                                                       6,352                                                                        (4,052 )
                                                                                                                             -------------------- ----------                                                                   -------------------- ----------                                                                  -------------------- ----------                                                                  -------------------- ----------
Net Earnings Attributable to Jacobs                                                                                                             $     94,142                                                                                      $     29,644                                                                                     $    293,727                                                                                     $    210,463
                                                                                                                             ==================== ==========                                                                   ==================== ==========                                                                  ==================== ==========                                                                  ==================== ==========
Net Earnings Per Share:
Basic                                                                                                                                           $       0.78                                                                                      $       0.25                                                                                     $       2.43                                                                                     $       1.75
Diluted                                                                                                                                         $       0.78                                                                                      $       0.24                                                                                     $       2.42                                                                                     $       1.73
                                                                                                                             ==================== ==========                                                                   ==================== ==========                                                                  ==================== ==========                                                                  ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

Segment Information (in thousands):

                                                                                                        Three Months Ended                                                                                                                                                  Year Ended
                                                                                                 --------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       September 29, 2017                     September 30, 2016                                                                                                  September 29, 2017                           September 30, 2016
                                                                                                 -------------------------------                                                                                    -------------------------------                                                                                    --------------------------------                                                                                    ------------------------------------------
Revenues from External Customers:
   Aerospace & Technology                                                                                           $   620,706                                                                                                        $   649,993                                                                                                        $  2,360,613                                                                                                        $            2,657,433
   Buildings & Infrastructure                                                                                           639,211                                                                                                            557,508                                                                                                           2,452,321                                                                                                                     2,253,512
   Industrial                                                                                                           727,877                                                                                                            749,061                                                                                                           2,743,662                                                                                                                     2,793,713
   Petroleum & Chemicals                                                                             666,071                                                                                         684,025                                                                                        2,466,192                                                                                                  3,259,499
                                                                                                 -------------------- ---------                                                                                     -------------------- ---------                                                                                     -------------------- ----------                                                                                     -------------------- --------------------
      Total                                                                                                         $ 2,653,865                                                                                                        $ 2,640,587                                                                                                        $ 10,022,788                                                                                                        $           10,964,157
                                                                                                 ==================== =========                                                                                     ==================== =========                                                                                     ==================== ==========                                                                                     ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                   Three Months Ended                                                                                                                               Year Ended
                                                                                                                   -------------------------------------------------------------------------------------------------------------------------------------                                                                 ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         September 29, 2017                         September 30, 2016                                                                                September 29, 2017                        September 30, 2016
                                                                                                                   -------------------------------                                                                  ------------------------------------                                                                 -------------------------------                                                                 ------------------------------------
Operating Profit:
   Aerospace & Technology                                                                                                             $    55,861                                                                                      $         46,947                                                                                     $   202,595                                                                                     $        203,808
   Buildings & Infrastructure (1)                                                                                                          54,499                                                                                                41,564                                                                                         193,455                                                                                              174,648
   Industrial                                                                                                                              33,714                                                                                                13,052                                                                                         115,262                                                                                               81,268
   Petroleum & Chemicals                                                                                                25,532                                                                             34,410                                                                      113,858                                                                           126,604
                                                                                                                   -------------------- ---------                                                                   -------------------- --------------                                                                  -------------------- ---------                                                                  -------------------- --------------
      Total Segment Operating Profit                                                                                                      169,606                                                                                               135,973                                                                                         625,170                                                                                              586,328
Other Corporate Expenses                                                                                                                  (25,975 )                                                                                              (1,926 )                                                                                       (81,595 )                                                                                            (60,100 )
Restructuring and Other Charges                                                                                                           (19,539 )                                                                                             (51,236 )                                                                                      (134,206 )                                                                                           (187,630 )
CH2M Professional Fees and Integration costs                                                                           (17,100 )                                                                   --                                                                      (17,100 )                                                                  --
                                                                                                                   -------------------- ---------                                                                   -------------------- --------------                                                                  -------------------- ---------                                                                  -------------------- --------------
                                                                                                                                          106,992                                                                                                82,811                                                                                         392,269                                                                                              338,598
      Total U.S. GAAP Operating Profit
Gain/(Loss) on disposal of business and investments                                                                                        10,880                                                                                               (41,410 )                                                                                        10,880                                                                                              (41,410 )
      Total Other Expense (2)                                                                                            1,577                                                                             (5,728 )                                                                     (9,932 )                                                                         (10,465 )
                                                                                                                   -------------------- ---------                                                                   -------------------- --------------                                                                  -------------------- ---------                                                                  -------------------- --------------
      Earnings Before Taxes                                                                                                           $   119,449                                                                                      $         35,673                                                                                     $   393,217                                                                                     $        286,723
                                                                                                                   ==================== =========                                                                   ==================== ==============                                                                  ==================== =========                                                                  ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
(1)     Excludes $ 23,844 in restructuring and other charges for the fiscal
                                              year ended September 29, 2017.
(2)                                           Years ended September 29, 2017 and September 30, 2016 amounts
                                              include Restructuring and other charges of $1,233 and $277,
                                              respectively.
                                               

Other Operational Information (in thousands):

                                                                                                      Three Months Ended                                                                                                                           Year ended
                                                                                                          ----------------------------------------------------------------------------------------------------------------------------                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           September 29, 2017          September 30, 2016                                                                                      September 29, 2017               September 30, 2016
                                                                                                          --------------------                                                                                    --------------------                                                                                    --------------------                                                                                    -------------------------------
   Depreciation (pre-tax)                                                                                         $    23,700                                                                                             $    18,916                                                                                             $    76,418                                                                                             $               82,363
                                                                                                          ========= =========                                                                                     ========= =========                                                                                     ========= =========                                                                                     ========= ====================
   Amortization of Intangibles (pre-tax)                                                                          $    11,204                                                                                             $    12,109                                                                                             $    46,095                                                                                             $               47,608
                                                                                                          ========= =========                                                                                     ========= =========                                                                                     ========= =========                                                                                     ========= ====================
   Pass-Through Costs Included in Revenues                                                                        $   677,698                                                                                             $   602,304                                                                                             $ 2,539,311                                                                                             $            2,489,924
                                                                                                          ========= =========                                                                                     ========= =========                                                                                     ========= =========                                                                                     ========= ====================
   Capital Expenditures                                                                                           $    44,508                                                                                             $    21,285                                                                                             $   118,060                                                                                             $               67,688
                                                                                                          ========= =========                                                                                     ========= =========                                                                                     ========= =========                                                                                     ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                             

Balance Sheet (in thousands):

                                                                                                                  September 29, 2017                            September 30, 2016
                                                                                                                                                                                                                                                                 ------------------------------------                                                                                      ------------------------------------
ASSETS
   Current Assets:
      Cash and cash equivalents                                                                                                                                                                                                                                                     $        774,151                                                                                                          $        655,716
      Receivables                                                                                                                                                                                                                                                                          2,102,543                                                                                                                 2,115,663
      Prepaid expenses and other                                                                                                                                                                                                                                          119,486                                                                                                 93,091
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
         Total current assets                                                                                                                                                                                                                                           2,996,180                                                                                              2,864,470
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
   Property, Equipment, and Improvements, Net                                                                                                                                                                                                                             349,911                                                                                                319,673
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
   Other Noncurrent Assets:
      Goodwill                                                                                                                                                                                                                                                                             3,009,826                                                                                                                 3,079,628
      Intangibles, net                                                                                                                                                                                                                                                                       332,920                                                                                                                   336,922
      Miscellaneous                                                                                                                                                                                                                                                       692,022                                                                                                759,329
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
         Total other noncurrent assets                                                                                                                                                                                                                                  4,034,768                                                                                              4,175,879
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
                                                                                                                                                                                                                                                                                    $      7,380,859                                                                                                          $      7,360,022
                                                                                                                                                                                                                                                                 ==================== ==============                                                                                       ==================== ==============
LIABILITIES AND STOCKHOLDERS’ EQUITY
   Current Liabilities:
      Notes payable                                                                                                                                                                                                                                                                 $          3,071                                                                                                          $          2,421
      Accounts payable                                                                                                                                                                                                                                                                       683,605                                                                                                                   522,427
      Accrued liabilities                                                                                                                                                                                                                                                                    939,687                                                                                                                   938,378
      Billings in excess of costs                                                                                                                                                                                                                                         299,864                                                                                                319,460
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
         Total current liabilities                                                                                                                                                                                                                                      1,926,227                                                                                              1,782,686
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
   Long-term Debt                                                                                                                                                                                                                                                         235,000                                                                                                385,330
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
   Other Deferred Liabilities                                                                                                                                                                                                                                             732,281                                                                                                861,824
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
   Commitments and Contingencies
   Stockholders’ Equity:
      Capital stock:
                                                                                                                                                                                                                                                                                      --                                                                                                            --
         Preferred stock, $1 par value, authorized--1,000,000 shares; issued
         and outstanding--none
         Common stock, $1 par value, authorized--240,000,000 shares; issued                                                                                                                                                                                                      120,386                                                                                                                   120,951
         and outstanding--120,385,544 shares and 120,950,899 shares as of
         September 29, 2017 and September 30, 2016, respectively
      Additional paid-in capital                                                                                                                                                                                                                                                           1,239,782                                                                                                                 1,168,272
      Retained earnings                                                                                                                                                                                                                                                                    3,721,698                                                                                                                 3,586,647
      Accumulated other comprehensive loss                                                                                                                                                                                                                               (653,514 )                                                                                             (610,594 )
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
         Total Jacobs stockholders’ equity                                                                                                                                                                                                                      4,428,352                                                                                                                 4,265,276
                                                                                                                                                                                                                                                                           58,999                                                                                                 64,906
      Non-controlling interests
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
         Total Group stockholders’ equity                                                                                                                                                                                                    4,487,351                                                                                              4,330,182
                                                                                                                                                                                                                                                                 -------------------- --------------                                                                                       -------------------- --------------
                                                                                                                                                                                                                                                                                    $      7,380,859                                                                                                          $      7,360,022
                                                                                                                                                                                                                                                                 ==================== ==============                                                                                       ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                

Backlog (in millions):

                                               September 29, 2017                 September 30, 2016
                                                                                                                                                                                                      --------------------                                                                                                         -------------------------------
   Aerospace & Technology                                                                                                                                                                                     $   6,231.4                                                                                                                  $              5,110.0
   Buildings & Infrastructure                                                                                                                                                                                     5,412.4                                                                                                                                 5,033.5
   Industrial                                                                                                                                                                                                     2,836.9                                                                                                                                 3,106.6
   Petroleum & Chemicals                                                                                                                                                                                      $   5,307.9                                                                                                                  $              5,510.4
                                                                                                                                                                                                      --------- ---------                                                                                                          --------- --------------------
      Total                                                                                                                                                                                                   $  19,788.6                                                                                                                  $             18,760.5
                                                                                                                                                                                                      ========= =========                                                                                                          ========= ====================
                                                                                                                                                                                                                                                                                                                                              

Non-U.S. 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 adjusted net earnings and adjusted EPS.

Adjusted net earnings and adjusted EPS are non-GAAP financial measures that are calculated by excluding the after-tax costs related to (i) 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; 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; and restructuring activities associated with the Company’s announced definitive agreement to acquire CH2M, which included involuntary terminations (collectively referred to as "Restructuring and other charges"), and (ii) professional fees, integration costs and related costs associated with the CH2M acquisition (collectively referred to as "CH2M professional fees and integration costs"), which are not considered by management to be part of the Company’s ordinary operations. We believe that the adjusted net earnings and adjusted EPS 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 the effects of the Restructuring and other charges and the professional fees, integration costs and related costs associated with CH2M acquisition, which can obscure underlying trends. Additionally, management uses adjusted net earnings and adjusted EPS 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 net earnings and EPS to the corresponding "adjusted" amounts. For the comparable periods presented below, such adjustments consist of amounts incurred in connection with the Restructuring and other charges and the CH2M professional fees and integration costs. Amounts are shown in thousands, except for per-share data:

U.S. GAAP Reconciliation for the fourth quarter of fiscal 2017 and 2016:

                                                                                                                                                                                                                         Three Months Ended
                                                                                                                                                                                                                                                                                  September 29, 2017
                                                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  U.S. GAAP                                Effects of                                  Effects of                                 Adjusted
                                                                                                                                                                                                                                   Restructuring                                                                                            CH2M
                                                                                                                                                                                                                                     and Other                                                                                          professional
                                                                                                                                                                                                                                      Charges                                                                                             fees and
                                                                                                                                                                                                                                                                                                                                         integration
                                                                                                                                                                                                                                                                                                                                            costs
                                                                                                                      ------------------------------                                                                   ----------------------------------                                                                   ----------------------------------                                                                   ------------------------------
Revenue                                                                                                                                  $  2,653,865                                                                                     $ --                                                                                     $ --                                                                                     $  2,653,865
Direct cost of contracts                                                                                                                   (2,179,575 )                                                                                     --                                                                                       --                                                                                       (2,179,575 )
Selling, general and administrative expenses                                                                                                 (367,298 )                                                                                             19,539                                                                                               17,100                                                                                         (330,659 )
Total other (expense) income, net                                                                                           12,457                                                                    --                                                                    --                                                                        12,457
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- --------------                                                                  -------------------- ----------
Earnings Before Taxes                                                                                                                         119,449                                                                                               19,539                                                                                               17,100                                                                                          156,088
Income Tax (Expense) Benefit                                                                                               (26,021 )                                                                          (5,980 )                                                                          (6,498 )                                                                     (38,499 )
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- --------------                                                                  -------------------- ----------
Net earnings of the Group                                                                                                                      93,428                                                                                               13,559                                                                                               10,602                                                                                          117,589
Net Earnings Attributable to Non-controlling interests                                                                         714                                                                    --                                                                    --                                                                           714
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- --------------                                                                  -------------------- ----------
Net earnings Attributable to Jacobs                                                                                                      $     94,142                                                                                     $         13,559                                                                                     $         10,602                                                                                     $    118,303
                                                                                                                      ==================== ==========                                                                  ==================== ==============                                                                  ==================== ==============                                                                  ==================== ==========
Diluted earnings per share                                                                                                               $       0.78                                                                                     $           0.11                                                                                     $           0.09                                                                                     $       0.98
                                                                                                                      ==================== ==========                                                                  ==================== ==============                                                                  ==================== ==============                                                                  ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                       Three Months Ended
                                                                                                                                                                                                                                September 30, 2016
                                                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  U.S. GAAP                              Effects of 2015                              Adjusted
                                                                                                                                                                                                                                   Restructuring
                                                                                                                                                                                                                                  and other items
                                                                                                                      ------------------------------                                                                   ----------------------------------                                                                   ------------------------------
Revenue                                                                                                                                  $  2,640,587                                                                                     $ --                                                                                     $  2,640,587
Direct cost of contracts                                                                                                                   (2,208,895 )                                                                                     --                                                                                       (2,208,895 )
Selling, general and administrative expenses                                                                                                 (348,881 )                                                                                             51,236                                                                                         (297,645 )
Total other income (expense), net                                                                                          (47,138 )                                                                          41,410                                                                        (5,728 )
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- ----------
Earnings Before Taxes                                                                                                                          35,673                                                                                               92,646                                                                                          128,319
Income Tax (Expense) Benefit                                                                                                (5,790 )                                                                         (29,162 )                                                                     (34,952 )
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- ----------
Net earnings of the Group                                                                                                                      29,883                                                                                               63,484                                                                                           93,367
Net Earnings Attributable to Non-controlling interests                                                                        (239 )                                                                  --                                                                          (239 )
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- ----------
Net earnings Attributable to Jacobs                                                                                                      $     29,644                                                                                     $         63,484                                                                                     $     93,128
                                                                                                                      ==================== ==========                                                                  ==================== ==============                                                                  ==================== ==========
Diluted earnings per share                                                                                                               $       0.24                                                                                     $           0.53                                                                                     $       0.77
                                                                                                                      ==================== ==========                                                                  ==================== ==============                                                                  ==================== ==========
                                                                                                                                                                                                                                                                                                                                                             

U.S. GAAP Reconciliation for the fiscal years ended September 29, 2017 and September 30, 2016:

                                                                                                                                                                                                                                    Year Ended
                                                                                                                                                                                                                                                                                         September 29, 2017
                                                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  U.S. GAAP                            Effects of                               Effects of                                   Adjusted
                                                                                                                                                                                                                               Restructuring                                                                                         CH2M
                                                                                                                                                                                                                                 and Other                                                                                       professional
                                                                                                                                                                                                                                  Charges                                                                                          fees and
                                                                                                                                                                                                                                                                                                                                  integration
                                                                                                                                                                                                                                                                                                                                     costs
                                                                                                                      ------------------------------                                                                   ---------------------------                                                                   ----------------------------------                                                                                        ------------------------------
Revenue                                                                                                                                  $ 10,022,788                                                                                     $  17,526                                                                                     $ --                                                                                                          $ 10,040,314
Direct cost of contracts                                                                                                                   (8,250,536 )                                                                                       4,913                                                                                       --                                                                                                            (8,245,623 )
Selling, general and administrative expenses                                                                                               (1,379,983 )                                                                                     111,767                                                                                               17,100                                                                                                            (1,251,116 )
Total other income (expense), net                                                                                              948                                                                      1,233                                                                    --                                                                                              2,181
                                                                                                                      -------------------- ----------                                                                  -------------------- -------                                                                  -------------------- --------------                                                                                       -------------------- ----------
Earnings Before Taxes                                                                                                                         393,217                                                                                       135,439                                                                                               17,100                                                                                                               545,756
Income Tax (Expense) Benefit                                                                                              (105,842 )                                                                  (42,663 )                                                                          (6,498 )                                                                                         (155,003 )
                                                                                                                      -------------------- ----------                                                                  -------------------- -------                                                                  -------------------- --------------                                                                                       -------------------- ----------
Net earnings of the Group                                                                                                                     287,375                                                                                        92,776                                                                                               10,602                                                                                                               390,753
Net Earnings Attributable to Non-controlling interests                                                                       6,352                                                                     (4,913 )                                                                  --                                                                                              1,439
                                                                                                                      -------------------- ----------                                                                  -------------------- -------                                                                  -------------------- --------------                                                                                       -------------------- ----------
Net earnings Attributable to Jacobs                                                                                                      $    293,727                                                                                     $  87,863                                                                                     $         10,602                                                                                                          $    392,192
                                                                                                                      ==================== ==========                                                                  ==================== =======                                                                  ==================== ==============                                                                                       ==================== ==========
Diluted earnings per share                                                                                                               $       2.42                                                                                     $    0.73                                                                                     $           0.09                                                                                                          $       3.24
                                                                                                                      ==================== ==========                                                                  ==================== =======                                                                  ==================== ==============                                                                                       ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                        Year Ended
                                                                                                                                                                                                                                September 30, 2016
                                                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  U.S. GAAP                              Effects of 2015                              Adjusted
                                                                                                                                                                                                                                   Restructuring
                                                                                                                                                                                                                                  and other items
                                                                                                                      ------------------------------                                                                   ----------------------------------                                                                   ------------------------------
Revenue                                                                                                                                  $ 10,964,157                                                                                     $ --                                                                                     $ 10,964,157
Direct cost of contracts                                                                                                                   (9,196,326 )                                                                                     --                                                                                       (9,196,326 )
Selling, general and administrative expenses                                                                                               (1,429,233 )                                                                                            187,630                                                                                       (1,241,603 )
Total other income (expense), net                                                                                          (51,875 )                                                                          41,687                                                                       (10,188 )
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- ----------
Earnings Before Taxes                                                                                                                         286,723                                                                                              229,317                                                                                          516,040
Income Tax (Expense) Benefit                                                                                               (72,208 )                                                                         (66,225 )                                                                    (138,433 )
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- ----------
Net earnings of the Group                                                                                                                     214,515                                                                                              163,092                                                                                          377,607
Net Earnings Attributable to Non-controlling interests                                                                      (4,052 )                                                                  --                                                                        (4,052 )
                                                                                                                      -------------------- ----------                                                                  -------------------- --------------                                                                  -------------------- ----------
Net earnings Attributable to Jacobs                                                                                                      $    210,463                                                                                     $        163,092                                                                                     $    373,555
                                                                                                                      ==================== ==========                                                                  ==================== ==============                                                                  ==================== ==========
Diluted earnings per share                                                                                                               $       1.73                                                                                     $           1.35                                                                                     $       3.08
                                                                                                                      ==================== ==========                                                                  ==================== ==============                                                                  ==================== ==========
                                                                                                                                                                                                                                                                                                                                                             

Additional Information and Where to Find It

In connection with the proposed acquisition of CH2M Hill Companies Ltd. ("CH2M") by Jacobs Engineering Group Inc. (the "Company") pursuant to the terms of an Agreement and Plan of Merger by and among CH2M, the Company and Basketball Merger Sub Inc., a wholly owned subsidiary of the Company ("Merger Sub"), the Company filed with the Securities and Exchange Commission (the "SEC") a Registration Statement on Form S-4 (the "Form S-4") on September 19, 2017, Amendment No. 1 to the Form S-4 on October 24, 2017 and Amendment No. 2 to the Form S-4 on November 8, 2017, which filings contain a proxy statement of CH2M and a prospectus of the Company. The Form S-4 (as amended) was declared effective on November 9, 2017, and the definitive proxy statement/prospectus was mailed or otherwise disseminated to CH2M’s stockholders on or about November 10, 2017. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS) BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, CH2M AND THE MERGER. Investors may obtain free copies of the proxy statement/prospectus when it becomes available, as well as other filings containing information about the Company and CH2M, without charge, at the SEC’s Internet website (http://www.sec.gov) . Copies of these documents may also be obtained for free from the companies’ websites at www.jacobs.com or www.ch2m.com.

Participants in Solicitation

The Company, CH2M and their respective officers and directors may be deemed to be participants in the solicitation of proxies from the stockholders of CH2M in connection with the proposed Merger of Merger Sub with and into CH2M. Information about the Company’s executive officers and directors is set forth in its Annual Report on Form 10-K, which was filed with the SEC on November 21, 2017 and its proxy statement for its 2017 annual meeting of stockholders, which was filed with the SEC on December 9, 2016. Information about CH2M’s executive officers and directors is set forth in its Annual Report on Form 10-K, which was filed with the SEC on March 7, 2017, and the proxy statements for its 2017 annual meeting of stockholders, which was filed with the SEC on April 24, 2017. Investors may obtain more detailed information regarding the direct and indirect interests of the Company, CH2M and their respective executive officers and directors in the acquisition by reading the preliminary and definitive proxy statement/prospectus regarding the proposed transaction that was filed with the SEC. You may obtain free copies of these documents as described in the preceding paragraph.

No Offer or Solicitation

This press release relates to a proposed business combination between the Company and CH2M. This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. This document is not a substitute for the prospectus or any other document that the Company or CH2M may file with the SEC in connection with the proposed transaction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20171121005353r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20171121005353/en/

SOURCE: Jacobs Engineering Group Inc.

Jacobs Engineering Group Inc. 
Kevin C. Berryman 
Executive Vice President and Chief Financial Officer 
214-583-8500


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