Get Cash Back and $0 Commissions
+ The Power of TradeStation
PRNewswire 26-Feb-2019 5:52 AM
HOUSTON, Feb. 26, 2019 /PRNewswire/ -- KBR, Inc. (NYSE:KBR), a global provider of differentiated, professional services and technologies across the asset and program life cycle of the government services and hydrocarbons industries today announced fourth quarter and fiscal 2018 financial results and guidance for fiscal 2019.
"I am delighted to report our 2018 full year results, in which we added our 8th consecutive quarter of strong revenue, earnings and cash flow; quality year-over-year backlog growth; and the successful integration of SGT and Aspire," said Stuart Bradie, KBR President and CEO. "As we celebrate our 100 year anniversary, the level of energy and enthusiasm across our organization is high. Our Government Services business is delivering industry-leading organic growth with solid margins, our Technology business continues to expand, delivering excellent operating margins and cash conversion, and our Hydrocarbons Services business is well-positioned for growth as our clients embark on a healthy capital investment cycle," Bradie said. "We are particularly pleased to see the restoration of the fundamental cash generating ability of our business, and with the book of business in our backlog today, we expect to continue our cash momentum as we look ahead," added Bradie. "Our people across the world are committed to delivering safe, reliable and industry leading execution to our customers. This dedication underpins profitable, predictable, and cash generative financial performance - just as we committed as part of our strategic transformation."
Fourth Quarter and Fiscal 2018 Financial Results
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||
Dollars in millions, except per share amounts |
(Unaudited) |
|||||||||||||||
Revenue |
$ |
1,330 |
$ |
937 |
$ |
4,913 |
$ |
4,171 |
||||||||
Operating Income |
$ |
88 |
$ |
27 |
$ |
470 |
$ |
266 |
||||||||
Net Income Attributable to KBR |
$ |
43 |
$ |
275 |
$ |
281 |
$ |
434 |
||||||||
Cash Flow Provided by Operating Activities |
$ |
129 |
$ |
(45) |
$ |
165 |
$ |
193 |
||||||||
Diluted EPS |
$ |
0.31 |
$ |
1.94 |
$ |
1.99 |
$ |
3.06 |
||||||||
Adjusted EPS (1) |
$ |
0.39 |
$ |
0.28 |
$ |
1.53 |
$ |
1.49 |
||||||||
(1) See additional information at the end of this release regarding non-GAAP financial measures. |
Financial highlights for the quarter ended December 31, 2018 are as follows:
Financial highlights for the year ended December 31, 2018 are as follows:
Liquidity and Capital Structure
Notable New Business Awards/Developments:
Quality bookings continue to support the Company's long-term outlook. Consolidated fiscal year 2018 book-to-bill in 2018 was 1.2x, excluding the workoff of our long-term privately financed initiatives, or PFIs, as follows: Government Services business 1.2x, excluding the workoff of PFIs; Technology 1.6x; and Hydrocarbons Services 1.1x. Booking highlights include the following:
2019 Guidance
Across the markets we serve, our 2019 outlook is favorable, as follows:
The company initiates 2019 GAAP EPS guidance with a range of $1.29 to $1.44, and Adjusted EPS guidance with a range of $1.58 to $1.73 per share. Our guidance of earnings per share is on an Adjusted EPS basis, which excludes legacy legal costs for U.S. Government contracts, non-cash imputed interest on the conversion option of the convertible debt, acquisition and integration related costs, amortization related to the consolidation of Aspire, and incremental 2019 interest expense associated with funding the legacy Ichthys project. A reconciliation of GAAP EPS to Adjusted EPS guidance is included at the end of this release.
Operating cash flows for 2019 are estimated to range from $175 million to $205 million, representing an operating cash flow to net income ratio of 90% to 110%. Our estimated effective tax rate for 2019 is estimated to range from 23% to 25%.
About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs over 36,000 people worldwide (including our joint ventures), with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:
KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
Visit www.kbr.com
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
KBR, Inc.: Consolidated Statements of Operations |
|||||||
(In millions, except for per share data) |
|||||||
(Unaudited) |
|||||||
Three Months Ended |
|||||||
December 31, |
December 31, |
||||||
2018 |
2017 |
||||||
Revenues: |
|||||||
Government Services |
$ |
984 |
$ |
553 |
|||
Technology |
82 |
73 |
|||||
Hydrocarbons Services |
263 |
310 |
|||||
Subtotal |
1,329 |
936 |
|||||
Non-strategic Business |
1 |
1 |
|||||
Total revenues |
1,330 |
937 |
|||||
Gross profit (loss): |
|||||||
Government Services |
76 |
42 |
|||||
Technology |
24 |
26 |
|||||
Hydrocarbons Services |
24 |
(3) |
|||||
Subtotal |
124 |
65 |
|||||
Non-strategic Business |
(1) |
— |
|||||
Total gross profit |
123 |
65 |
|||||
Equity in earnings of unconsolidated affiliates: |
|||||||
Government Services |
10 |
2 |
|||||
Hydrocarbons Services |
17 |
6 |
|||||
Subtotal |
27 |
8 |
|||||
Non-strategic Business |
— |
— |
|||||
Total equity in earnings of unconsolidated affiliates |
27 |
8 |
|||||
General and administrative expenses |
(53) |
(40) |
|||||
Acquisition and integration related costs |
(2) |
— |
|||||
Asset impairment and restructuring charges |
— |
(6) |
|||||
Loss on disposition of assets |
(2) |
— |
|||||
Loss on consolidation of Aspire entities |
(5) |
— |
|||||
Operating income |
88 |
27 |
|||||
Interest expense |
(23) |
(5) |
|||||
Other non-operating (loss) income |
(2) |
13 |
|||||
Income before income taxes and noncontrolling interests |
63 |
35 |
|||||
(Provision) benefit for income taxes |
(14) |
243 |
|||||
Net income |
49 |
278 |
|||||
Net income attributable to noncontrolling interests |
(6) |
(3) |
|||||
Net income attributable to KBR |
$ |
43 |
$ |
275 |
|||
Net income attributable to KBR per share: |
|||||||
Basic |
$ |
0.31 |
$ |
1.94 |
|||
Diluted |
$ |
0.31 |
$ |
1.94 |
|||
Basic weighted average common shares outstanding |
141 |
140 |
|||||
Diluted weighted average common shares outstanding |
141 |
140 |
|||||
Cash dividends declared per share |
$ |
0.08 |
$ |
0.08 |
KBR, Inc.: Consolidated Statements of Operations |
|||||||
(In millions, except for per share data) |
|||||||
(Unaudited) |
|||||||
Year Ended |
|||||||
December 31, |
December 31, |
||||||
2018 |
2017 |
||||||
Revenues: |
|||||||
Government Services |
$ |
3,457 |
$ |
2,193 |
|||
Technology |
297 |
269 |
|||||
Hydrocarbons Services |
1,157 |
1,671 |
|||||
Subtotal |
4,911 |
4,133 |
|||||
Non-strategic Business |
2 |
38 |
|||||
Total revenues |
4,913 |
4,171 |
|||||
Gross profit (loss): |
|||||||
Government Services |
280 |
155 |
|||||
Technology |
85 |
76 |
|||||
Hydrocarbons Services |
99 |
111 |
|||||
Subtotal |
464 |
342 |
|||||
Non-strategic Business |
(8) |
— |
|||||
Total gross profit |
456 |
342 |
|||||
Equity in earnings of unconsolidated affiliates: |
|||||||
Government Services |
32 |
43 |
|||||
Hydrocarbons Services |
49 |
29 |
|||||
Total equity in earnings of unconsolidated affiliates |
81 |
72 |
|||||
General and administrative expenses |
(166) |
(147) |
|||||
Acquisition and integration related costs |
(7) |
— |
|||||
Asset impairment and restructuring charges |
— |
(6) |
|||||
Loss (gain) on disposition of assets |
(2) |
5 |
|||||
Gain on consolidation of Aspire entities |
108 |
— |
|||||
Operating income |
470 |
266 |
|||||
Interest expense |
(66) |
(21) |
|||||
Other non-operating (loss) income |
(6) |
4 |
|||||
Income before income taxes and noncontrolling interests |
398 |
249 |
|||||
Provision for income taxes |
(88) |
193 |
|||||
Net income |
310 |
442 |
|||||
Net income attributable to noncontrolling interests |
(29) |
(8) |
|||||
Net income attributable to KBR |
$ |
281 |
$ |
434 |
|||
Net income attributable to KBR per share: |
|||||||
Basic |
$ |
1.99 |
$ |
3.06 |
|||
Diluted |
$ |
1.99 |
$ |
3.06 |
|||
Basic weighted average common shares outstanding |
140 |
141 |
|||||
Diluted weighted average common shares outstanding |
141 |
141 |
|||||
Cash dividends declared per share |
$ |
0.32 |
$ |
0.32 |
KBR, Inc.: Selected Balance Sheet Information |
||||||||
(In millions) |
||||||||
December 31, |
December 31, |
|||||||
2018 |
2017 |
|||||||
(Unaudited) |
||||||||
Cash and equivalents |
$ |
739 |
$ |
439 |
||||
Accounts receivable, net of allowance for doubtful accounts of $9 and $12 |
927 |
510 |
||||||
Contract assets |
185 |
383 |
||||||
Other current assets |
108 |
93 |
||||||
Total current assets |
1,959 |
1,425 |
||||||
Total assets |
5,072 |
3,674 |
||||||
Total current liabilities |
1,419 |
1,071 |
||||||
Total long-term debt, including current maturities |
1,248 |
470 |
||||||
Total liabilities |
3,334 |
2,453 |
||||||
Total shareholders' equity |
1,738 |
1,221 |
||||||
Total liabilities and shareholders' equity |
$ |
5,072 |
$ |
3,674 |
KBR, Inc.: Consolidated Statements of Cash Flows |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
Three Months Ended |
|||||||
December 31, |
December 31, |
||||||
2018 |
2017 |
||||||
Cash flows provided by operating activities: |
|||||||
Net income |
$ |
49 |
$ |
278 |
|||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||||||
Depreciation and amortization |
16 |
10 |
|||||
Equity in earnings of unconsolidated affiliates |
(27) |
(8) |
|||||
Deferred income tax (benefit) |
(1) |
(247) |
|||||
Loss (gain) on disposition of assets |
2 |
(5) |
|||||
Loss on consolidation of Aspire entities |
5 |
— |
|||||
Other |
11 |
9 |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable, net of allowance for doubtful accounts |
(59) |
(8) |
|||||
Contract assets |
29 |
29 |
|||||
Accounts payable |
40 |
(49) |
|||||
Contract liabilities |
3 |
9 |
|||||
Accrued salaries, wages and benefits |
(7) |
(25) |
|||||
Reserve for loss on uncompleted contracts |
(1) |
(5) |
|||||
Payments from unconsolidated affiliates, net |
5 |
5 |
|||||
Distributions of earnings from unconsolidated affiliates |
59 |
21 |
|||||
Other assets and liabilities |
5 |
(59) |
|||||
Total cash flows provided by (used in) operating activities |
129 |
(45) |
|||||
Cash flows from investing activities: |
|||||||
Purchases of property, plant and equipment |
(2) |
(2) |
|||||
Investments in equity method joint ventures |
(87) |
— |
|||||
Proceeds from sale of assets or investments |
24 |
— |
|||||
Acquisition of businesses, net of cash acquired |
— |
(6) |
|||||
Other |
2 |
— |
|||||
Total cash flows used in investing activities |
(63) |
(8) |
|||||
Cash flows from financing activities: |
|||||||
Payments to reacquire common stock |
— |
(1) |
|||||
Investments from noncontrolling interest |
— |
1 |
|||||
Distributions to noncontrolling interests |
(3) |
(3) |
|||||
Payments of dividends to shareholders |
(10) |
(11) |
|||||
Proceeds from sale of warrants |
22 |
— |
|||||
Purchase of note hedges |
(62) |
— |
|||||
Issuance of convertible notes |
350 |
— |
|||||
Excess tax benefits from share-based compensation |
1 |
— |
|||||
Borrowings on revolving credit agreements |
— |
— |
|||||
Borrowings on long-term debt |
23 |
— |
|||||
Payments on revolving credit agreements |
(115) |
— |
|||||
Payments on short-term and long-term borrowings |
(93) |
(4) |
|||||
Debt issuance costs |
(10) |
— |
|||||
Other |
(1) |
— |
|||||
Total cash flows provided by (used in) financing activities |
102 |
(18) |
|||||
Effect of exchange rate changes on cash |
(10) |
(1) |
|||||
Increase (decrease) in cash and equivalents |
158 |
(72) |
|||||
Cash and equivalents at beginning of period |
581 |
511 |
|||||
Cash and equivalents at end of period |
$ |
739 |
$ |
439 |
KBR, Inc.: Consolidated Statements of Cash Flows |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
Year Ended |
|||||||
December 31, |
December 31, |
||||||
2018 |
2017 |
||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
310 |
$ |
442 |
|||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||||||
Depreciation and amortization |
63 |
48 |
|||||
Equity in earnings of unconsolidated affiliates |
(81) |
(72) |
|||||
Deferred income tax expense (benefit) |
28 |
(322) |
|||||
Loss (gain) on disposition of assets |
2 |
(5) |
|||||
Gain on consolidation of Aspire entities |
(108) |
— |
|||||
Other |
24 |
29 |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable, net of allowance for doubtful accounts |
(203) |
92 |
|||||
Contract assets |
25 |
40 |
|||||
Claims receivable |
— |
400 |
|||||
Accounts payable |
112 |
(193) |
|||||
Contract liabilities |
(60) |
(198) |
|||||
Accrued salaries, wages and benefits |
11 |
14 |
|||||
Reserve for loss on uncompleted contracts |
(9) |
(48) |
|||||
Payments from unconsolidated affiliates, net |
12 |
11 |
|||||
Distributions of earnings from unconsolidated affiliates |
75 |
62 |
|||||
Other assets and liabilities |
(36) |
(107) |
|||||
Total cash flows provided by operating activities |
165 |
193 |
|||||
Cash flows from investing activities: |
|||||||
Purchases of property, plant and equipment |
(17) |
(8) |
|||||
Investments in equity method joint ventures |
(344) |
— |
|||||
Proceeds from sale of assets or investments |
25 |
2 |
|||||
Acquisition of businesses, net of cash acquired |
(354) |
(4) |
|||||
Adjustments to cash due to consolidation of Aspire entities |
197 |
— |
|||||
Other |
2 |
(2) |
|||||
Total cash flows used in investing activities |
(491) |
(12) |
|||||
Cash flows from financing activities: |
|||||||
Payments to reacquire common stock |
(3) |
(53) |
|||||
Acquisition of remaining ownership interest in joint ventures |
(56) |
— |
|||||
Investments from noncontrolling interest |
— |
1 |
|||||
Distributions to noncontrolling interests |
(3) |
(4) |
|||||
Payments of dividends to shareholders |
(44) |
(45) |
|||||
Purchase of note hedges |
(62) |
— |
|||||
Issuance of convertible notes |
350 |
— |
|||||
Net proceeds from issuance of common stock |
2 |
— |
|||||
Excess tax benefits from share-based compensation |
1 |
— |
|||||
Borrowings on revolving credit agreements |
250 |
— |
|||||
Borrowings on long-term debt |
1,075 |
— |
|||||
Debt issuance costs |
(57) |
— |
|||||
Proceeds from sale of warrants |
22 |
— |
|||||
Payments on revolving credit agreements |
(720) |
(180) |
|||||
Payments on short-term and long-term borrowings |
(100) |
(9) |
|||||
Other |
(1) |
— |
|||||
Total cash flows provided by (used in) financing activities |
654 |
(290) |
|||||
Effect of exchange rate changes on cash |
(28) |
12 |
|||||
Increase (decrease) in cash and equivalents |
300 |
(97) |
|||||
Cash and equivalents at beginning of period |
439 |
536 |
|||||
Cash and equivalents at end of period |
$ |
739 |
$ |
439 |
KBR, Inc.: Backlog Information (a) |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
December 31, |
December 31, |
||||||
2018 |
2017 |
||||||
Government Services |
$ |
11,005 |
$ |
8,355 |
|||
Technology |
594 |
387 |
|||||
Hydrocarbons Services |
1,896 |
1,822 |
|||||
Subtotal |
13,495 |
10,564 |
|||||
Non-strategic Business |
2 |
6 |
|||||
Total backlog |
$ |
13,497 |
$ |
10,570 |
(a) |
Backlog generally represents the dollar amount of revenues we expect to realize in the future as a result of performing work on contracts and our pro-rata share of work to be performed by unconsolidated joint ventures. We generally include total expected revenues in backlog when a contract is awarded under a legally binding agreement. In many instances, arrangements included in backlog are complex, nonrepetitive and may fluctuate due to the release of contracted work in phases by the customer. Additionally, nearly all contracts allow customers to terminate the agreement at any time for convenience. Where contract duration is indefinite and clients can terminate for convenience without having to compensate us for periods beyond the date of termination, projects included in backlog are limited to the estimated amount of expected revenues within the following twelve months. Certain contracts provide maximum dollar limits, with actual authorization to perform work under the contract agreed upon on a periodic basis with the customer. In these arrangements, only the amounts authorized are included in backlog. For projects where we act solely in a project management capacity, we only include the value of our services on each project in backlog. |
We define backlog, as it relates to U.S. government contracts, as our estimate of the remaining future revenue from existing signed contracts over the remaining base contract performance period (including customer approved option periods) for which work scope and price have been agreed with the customer. We define funded backlog as the portion of backlog for which funding currently is appropriated, less the amount of revenue we have previously recognized. We define unfunded backlog as the total backlog less the funded backlog. Our GS backlog does not include any estimate of future potential delivery orders that might be awarded under our government-wide acquisition contracts, agency-specific indefinite delivery/indefinite quantity contracts, or other multiple-award contract vehicles nor does it include option periods that have not been exercised by the customer. |
|
Within our GS business segment, we calculate estimated backlog for long-term contracts associated with the U.K. government's privately financed initiatives or projects ("PFIs") based on the aggregate amount that our client would contractually be obligated to pay us over the life of the project. We update our estimates of the future work to be executed under these contracts on a quarterly basis and adjust backlog if necessary. |
|
We have included in the table above our proportionate share of unconsolidated joint ventures' estimated backlog. Since these projects are accounted for under the equity method, only our share of future earnings from these projects will be recorded in our results of operations. Our proportionate share of backlog for projects related to unconsolidated joint ventures totaled $3.0 billion at December 31, 2018 and $7.2 billion at December 31, 2017. We consolidate joint ventures which are majority-owned and controlled or are VIEs in which we are the primary beneficiary. Our backlog included in the table above for projects related to consolidated joint ventures includes 100% of the backlog associated with those joint ventures and totaled $5.3 billion at December 31, 2018 and $125 million at December 31, 2017. Our proportionate share of backlog related to the Aspire Defence subcontracting entities was included in backlog for projects related to unconsolidated joint ventures at December 31, 2017. As a result of obtaining control of these entities in January 2018, 100% of the backlog related to the Aspire Defence subcontracting entities is included as backlog related to consolidated joint ventures. |
|
We estimate that as of December 31, 2018, 33% of our backlog will be executed within one year. Of this amount, 83% will be recognized in revenues on our consolidated statement of operations and 17% will be recorded by our unconsolidated joint ventures. As of December 31, 2018, $79 million of our backlog relates to active contracts that are in a loss position. |
|
As of December 31, 2018, 10% of our backlog was attributable to fixed-price contracts, 56% was attributable to PFIs and 34% of our backlog was attributable to cost-reimbursable contracts. For contracts that contain both fixed-price and cost-reimbursable components, we classify the individual components as either fixed-price or cost-reimbursable according to the composition of the contract; however, for smaller contracts, we characterize the entire contract based on the predominant component. As of December 31, 2018, $9.5 billion of our GS backlog was currently funded by our customers. As of December 31, 2018, we had approximately $3.7 billion of priced option periods for U.S. government contracts that are not included in the backlog amounts presented above. |
Non-GAAP Financial Information
The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
Adjusted EPS
Adjusted diluted earnings per share from net income attributable to KBR (Adjusted EPS) is considered a non-GAAP financial measure under the SEC's rules because the Adjusted EPS for each such period excludes certain amounts not excluded in the diluted earnings per share from net income attributable to KBR calculated in accordance with GAAP (EPS) for such periods. Management believes that the Adjusted EPS is a meaningful measure to share with investors because each measure, which adjusts EPS for such periods for certain items recorded in such periods, is the measure that best allows comparison of the performance for the comparable period. In addition, Adjusted EPS affords investors a view of what management considers KBR's core earnings performance and also affords investors the ability to make a more informed assessment of such core earnings performance for the comparable periods.
We have calculated Adjusted EPS by adjusting EPS for the items included in the table below. Adjusted EPS is a non-GAAP financial measure. The most directly comparable financial measure calculated in accordance with GAAP is Diluted EPS for the same periods.
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||
(Unaudited) |
|||||||||||||||
Diluted earnings per share: |
|||||||||||||||
Reported EPS |
$ |
0.31 |
$ |
1.94 |
$ |
1.99 |
$ |
3.06 |
|||||||
Adjustments: |
|||||||||||||||
Legacy legal fees |
0.01 |
0.02 |
0.06 |
0.10 |
|||||||||||
Non-cash imputed interest on conversion option |
0.01 |
— |
0.01 |
— |
|||||||||||
Acquisition and integration related expenses |
0.01 |
— |
0.04 |
— |
|||||||||||
Amortization related to Aspire acquisition |
0.02 |
— |
0.06 |
— |
|||||||||||
Aspire (gain) loss on consolidation |
0.03 |
— |
(0.63) |
— |
|||||||||||
Non-cash tax benefit for 2017 Tax Reform |
— |
(0.13) |
— |
(0.13) |
|||||||||||
Non-cash tax valuation allowance reduction |
— |
(1.59) |
— |
(1.58) |
|||||||||||
Impairment of shareholder loan receivable |
— |
0.04 |
— |
0.04 |
|||||||||||
Adjusted EPS |
$ |
0.39 |
$ |
0.28 |
$ |
1.53 |
$ |
1.49 |
We have calculated the Adjusted EPS for the 2019 guidance by adjusting EPS for the items included in the table below.
Diluted Earnings per Share: |
2019 Guidance |
GAAP EPS Guidance |
$1.29 to $1.44 |
Adjustments: |
|
Legacy legal fees |
0.06 |
Non-cash imputed interest on conversion option |
0.06 |
Acquisition and integration related expenses |
0.02 |
Amortization related to Aspire consolidation |
0.06 |
Incremental interest expense on Ichthys funding |
0.09 |
Adjusted EPS Guidance |
$1.58 to $1.73 |
View original content to download multimedia:http://www.prnewswire.com/news-releases/kbr-announces-fourth-quarter-and-fiscal-2018-financial-results-guidance-for-fiscal-2019-300801655.html
SOURCE KBR, Inc.