Strong Q1 2024
Performance
Adjusted EBITDA2 Growth
with Margin Expansion
HOUSTON, April 30,
2024 /PRNewswire/ -- KBR, Inc. (NYSE: KBR) today
announced its first quarter fiscal 2024 financial results.
"KBR's extraordinary team has yet again surpassed expectations,
delivering outstanding first-quarter results," said Stuart Bradie, KBR's President and CEO. "Our
team's unwavering commitment to our customers has led to
year-over-year increases across all key financial metrics,
particularly in Adjusted EBITDA2 and operating cash
flow. Bookings during the quarter were well-aligned with our end
markets across energy security, national defense, human
performance, and sustainability."
New Business Awards
Backlog and options as of
March 29, 2024 totaled $20.8 billion. Delivered 1.1x
trailing-twelve-months (TTM) book-to-bill1 as of
March 29, 2024. Awarded $1.9 billion of bookings and options in the
quarter.
Sustainable Technology Solutions (STS) delivered 0.9x TTM
book-to-bill1 as of March 29,
2024, including awards and achievements in the quarter as
follows:
- KBR's Purifier™ ammonia technology selected by Wuhuan
Engineering Co. Ltd. for the expansion of El Nasr Company for
Intermediate Chemicals' 1,200 metric tonnes per day ammonia plant
in Egypt.
- Selected by First State Hydrogen, Inc. to provide engineering
services to study the feasibility of developing a clean hydrogen
production facility through electrolysis powered by renewable
energy. The study is part of First State Hydrogen's vision to
provide clean hydrogen for Delaware and the U.S. mid-Atlantic and help
the region meet its sustainability goals.
- Signed an alliance agreement with GeoLith SAS to offer its
advanced Direct Lithium Extraction technology, Li-Capt®. This
technology enables zero-emission lithium extraction from untapped
sources like geothermal and oil well brines.
- Awarded a project management contract by Sonangol for the
design and construction oversight of a new 200,000 barrels per day
refinery in Lobito, Angola - one
of the most significant and sustainable energy infrastructure
projects in the region.
- Secured a five-year asset condition monitoring program contract
from Rabigh Refining & Petrochemical Company to deploy
predictive maintenance services at its plant in Rabigh,
Saudi Arabia.
Government Solutions (GS) delivered 1.2x TTM
book-to-bill1 as of March 29,
2024, including awards and achievements in the quarter as
follows:
- Awarded new contracts estimated at more than $450 million to provide systems engineering,
acquisition support, phenomenology expertise and data science, as
well as applied research, communications security
infrastructure, operations and maintenance support to the U.S.
Government.
- Awarded a new subcontract with Bering Straits Information
Technologies in support of the U.S. Air Force Air Combat Command to
provide human performance optimization services at various military
bases around the world. This contract expands upon KBR's more than
50 years of commitment to the wider health and human performance
market within NASA and the Department of Defense.
- Won a new one-year task order with three one-year options on
the Seaport NxG IDIQ contract to assist with project execution for
the Naval Information Warfare Center Atlantic, supporting the
Defense Health Agency's cybersecurity services and risk management
framework initiatives.
- Selected to provide specialized IT services that will
equip the Royal Australian Navy with a more modern and cyber worthy
Fleet Information Environment.
- Awarded a three-year contract, with a two year-option period,
to deliver Heavy Equipment Transporter (HET) capability on behalf
of the British Army.
- Awarded option years for LOGCAP V to support activity in
NORTHCOM and EUCOM.
Summarized First Quarter 2024 Financial
Results
|
Three Months
Ended
|
|
March
29,
|
|
March
31,
|
Dollars in millions,
except share data
|
2024
|
|
2023
|
Revenues
|
1,818
|
|
1,703
|
Operating
income
|
166
|
|
144
|
Net income attributable
to KBR
|
93
|
|
86
|
Adjusted
EBITDA2
|
207
|
|
182
|
Operating income margin
%
|
9.1 %
|
|
8.5 %
|
Adjusted
EBITDA2 margin %
|
11.4 %
|
|
10.7 %
|
Earnings per
share:
|
|
|
|
Diluted earnings
per share
|
0.69
|
|
0.56
|
Adjusted
earnings per share2
|
0.77
|
|
0.67
|
Cash
flows:
|
|
|
|
Operating cash
flows
|
91
|
|
35
|
Adjusted
operating cash flows2
|
91
|
|
35
|
Adjusted free
cash flows2
|
66
|
|
16
|
Financial Highlights for the Three Months Ended March 29, 2024
- Revenue of $1.8 billion, up 7% on
a year-over-year-basis
- Net income attributable to KBR of $93
million; Adjusted EBITDA2 of $207 million, up 14% on a year-over-year
basis (11.4% Adjusted EBITDA2 margin)
- Diluted EPS of $0.69; Adjusted
EPS2 of $0.77, up
15% on a year-over-year basis
- Operating cash flows of $91
million
- Bookings and options of $1.9
billion during the quarter with 1.1x TTM
book-to-bill1
Commentary on the Three Months Ended March 29, 2024
Revenues were $1.8 billion, up 7% compared to 1Q'23, primarily
due to growth across Sustainable Technology Solutions; and within
Government Solutions, new and on-contract growth across
International, Defense & Intel, and Science and Space,
partially offset by contraction in Readiness & Sustainment due
to Ukraine funding delays.
Net income attributable to KBR was $93 million, up $7
million compared to 1Q'23, due to higher gross profit,
equity in earnings of unconsolidated affiliates and gain on
disposition of assets and investments, partially offset by higher
interest expense and other non-operating expense.
Adjusted EBITDA2 was $207 million, up 14%
compared to 1Q'23, with Adjusted EBITDA2 margins of
11.4%, up 70 bps year-over-year.
Diluted earnings per share was $0.69, up 23% compared to 1Q'23, due to the
increase in Net income attributable to KBR noted above and the
decrease in diluted weighted average common shares outstanding.
Adjusted earnings per share2 was $0.77, up 15% compared to 1Q'23, due to the
increase in Net income attributable to KBR noted above and the
decrease in adjusted weighted average common shares
outstanding.
Operating cash flows were $91
million, up 160% compared to 1Q'23, primarily due to strong
collections across the business.
Capital returned to shareholders totaled $79 million during the quarter, consisting of
$61 million in share repurchases,
inclusive of $50 million of open
market repurchases and $11 million of
repurchases to satisfy requirements of equity compensation plans,
and $18 million in regular
dividends.
Reaffirms Fiscal 2024 Guidance
The table below
summarizes FY24 guidance and represents our views as of
April 30, 2024.
|
Fiscal 2024
Guidance
|
Revenue
|
$7.4B -
$7.7B
|
Adjusted
EBITDA
|
$810M -
$850M
|
Diluted
EPS*
|
$2.88 -
$3.08
|
Adjusted
EPS*
|
$3.10 -
$3.30
|
Operating cash
flows
|
$450M -
$480M
|
|
* Fiscal 2024 Diluted
and Adjusted EPS guidance is calculated using a share count of
approximately 135 million.
|
The company does not provide a reconciliation of Adjusted EBITDA
to the most comparable GAAP financial measure on a forward-looking
basis because the company is unable to predict with reasonable
certainty the ultimate outcome of legal proceedings, unusual gains
and losses, and acquisition-related expenses without unreasonable
effort, which could be material to the company's results computed
in accordance with GAAP.
Conference Call Details
The company will host a
conference call to discuss its first quarter financial results on
Tuesday, April 30, 2024, at 7:30 a.m.
Central Time. The conference call will be webcast
simultaneously through the Investor Relations section of KBR's
website at investors.kbr.com. A replay of the webcast will be
available shortly after the call on KBR's website or by telephone
at +1.866.813.9403, passcode: 154682.
About KBR
We deliver science, technology and
engineering solutions to governments and companies around the
world. KBR employs approximately 35,000 people worldwide with
customers in more than 80 countries and operations in over 30
countries. KBR is proud to work with its customers across the globe
to provide technology, value-added services, and long-term
operations and maintenance services to ensure consistent delivery
with predictable results. At KBR, We Deliver.
Visit www.kbr.com
Forward-Looking Statements
The statements in this
press release that are not historical statements, including
statements regarding our expectations for our future financial
performance, effective tax rate, operating cash flows, contract
revenues, award activity and backlog, program activity, our
business strategy, interest expense, and our plans for raising and
deploying capital and paying dividends, 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: uncertainty, delays or reductions in government
funding, appropriations and payments, including as a result of
continuing resolution funding mechanisms, government shutdowns or
changing budget priorities; developments and changes in government
laws, regulations and policies that may require us to pause, delay
or abandon new and existing projects; the ongoing conflict between
Russia and Ukraine and in the Middle East and the related impacts on our
business; potential adverse economic and market conditions, such as
interest rate and currency exchange rate fluctuations, the
company's ability to manage its liquidity; 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; 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; the possibility of cyber and
malware attacks; 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.
The company'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 the company has identified that may affect its
business, results of operations and financial condition. Except as
required by law, the company undertakes no obligation to revise or
update publicly any forward-looking statements for any reason.
1 As
used throughout this release and consistent with our practice,
book-to-bill excludes long-term UK PFIs.
|
2 As
used throughout this earnings release, Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted earnings per share, Adjusted operating cash
flows, and Adjusted free cash flows are non-GAAP financial
measures. See additional information at the end of this
release regarding non-GAAP financial information, including
reconciliations to the nearest GAAP measures.
|
KBR,
Inc.
|
Condensed
Consolidated Statements of Operations
|
(In millions, except
for per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
29,
|
|
March
31,
|
|
|
2024
|
|
2023
|
Revenues:
|
|
|
|
|
Government
Solutions
|
|
$
1,386
|
|
$
1,328
|
Sustainable Technology
Solutions
|
|
432
|
|
375
|
Total
revenues
|
|
1,818
|
|
1,703
|
Gross
profit
|
|
248
|
|
245
|
Equity in earnings of
unconsolidated affiliates
|
|
30
|
|
23
|
Selling, general and
administrative expenses
|
|
(121)
|
|
(124)
|
Gain on disposition of
assets and investments
|
|
6
|
|
—
|
Other
|
|
3
|
|
—
|
Operating income
(loss):
|
|
|
|
|
Government
Solutions
|
|
115
|
|
102
|
Sustainable Technology
Solutions
|
|
86
|
|
82
|
Other
|
|
(35)
|
|
(40)
|
Total operating
income (loss)
|
|
166
|
|
144
|
Interest
expense
|
|
(31)
|
|
(26)
|
Other non-operating
expense
|
|
(6)
|
|
(2)
|
Income before income
taxes
|
|
129
|
|
116
|
Provision for income
taxes
|
|
(35)
|
|
(30)
|
Net
income
|
|
94
|
|
86
|
Less: Net income
attributable to noncontrolling interests
|
|
1
|
|
—
|
Net income
attributable to KBR
|
|
$
93
|
|
$
86
|
Adjusted
EBITDA1
|
|
$
207
|
|
$
182
|
Diluted EPS
|
|
$
0.69
|
|
$
0.56
|
Adjusted
EPS1
|
|
$
0.77
|
|
$
0.67
|
Diluted weighted
average common shares outstanding
|
|
135
|
|
154
|
Adjusted weighted
average common shares outstanding
|
|
135
|
|
140
|
|
1
See additional information at the end of
this release regarding non-GAAP financial information, including a
reconciliation to the nearest GAAP measure
|
KBR,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In millions, except
share data)
|
|
|
|
March
29,
|
|
December
29,
|
|
|
2024
|
|
2023
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
314
|
|
$
304
|
Accounts receivable,
net of allowance for credit losses of $8 and $8,
respectively
|
|
1,007
|
|
981
|
Contract
assets
|
|
202
|
|
177
|
Other current
assets
|
|
211
|
|
189
|
Total current
assets
|
|
1,734
|
|
1,651
|
Property, plant, and
equipment, net of accumulated depreciation of $462 and $458
(including net PPE of $41 and $36 owned by a variable interest
entity), respectively
|
|
247
|
|
239
|
Operating lease
right-of-use assets
|
|
140
|
|
138
|
Goodwill
|
|
2,110
|
|
2,109
|
Intangible assets, net
of accumulated amortization of $388 and $382,
respectively
|
|
605
|
|
618
|
Equity in and advances
to unconsolidated affiliates
|
|
178
|
|
206
|
Deferred income
taxes
|
|
205
|
|
239
|
Other assets
|
|
404
|
|
365
|
Total
assets
|
|
$
5,623
|
|
$
5,565
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
669
|
|
$
593
|
Contract
liabilities
|
|
348
|
|
359
|
Accrued salaries, wages
and benefits
|
|
301
|
|
340
|
Current maturities of
long-term debt
|
|
22
|
|
31
|
Other current
liabilities
|
|
239
|
|
249
|
Total current
liabilities
|
|
1,579
|
|
1,572
|
Employee compensation
and benefits
|
|
111
|
|
120
|
Income tax
payable
|
|
106
|
|
106
|
Deferred income
taxes
|
|
81
|
|
106
|
Long-term
debt
|
|
1,842
|
|
1,801
|
Operating lease
liabilities
|
|
175
|
|
176
|
Other
liabilities
|
|
310
|
|
290
|
Total
liabilities
|
|
4,204
|
|
4,171
|
Commitments and
Contingencies
|
|
|
|
|
KBR shareholders'
equity:
|
|
|
|
|
Preferred stock, $0.001
par value, 50,000,000 shares authorized, none issued
|
|
—
|
|
—
|
Common stock, $0.001
par value 300,000,000 shares authorized, 182,233,362 and
181,713,586 shares issued, and 134,651,351 and 135,067,562 shares
outstanding, respectively
|
|
—
|
|
—
|
Paid-in capital in
excess of par
|
|
2,514
|
|
2,505
|
Retained
earnings
|
|
1,145
|
|
1,072
|
Treasury stock,
47,582,011 shares and 46,646,024 shares, at cost,
respectively
|
|
(1,339)
|
|
(1,279)
|
Accumulated other
comprehensive loss
|
|
(912)
|
|
(915)
|
Total KBR
shareholders' equity
|
|
1,408
|
|
1,383
|
Noncontrolling
interests
|
|
11
|
|
11
|
Total shareholders'
equity
|
|
1,419
|
|
1,394
|
Total liabilities
and shareholders' equity
|
|
$
5,623
|
|
$
5,565
|
KBR,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
millions)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
29,
|
|
March
31,
|
|
2024
|
|
2023
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
94
|
|
$
86
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
36
|
|
36
|
Equity in earnings of
unconsolidated affiliates
|
(30)
|
|
(23)
|
Deferred income
tax
|
11
|
|
14
|
Gain on disposition of
assets
|
(6)
|
|
—
|
Other
|
9
|
|
10
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net of allowance for credit losses
|
(30)
|
|
(130)
|
Contract
assets
|
(26)
|
|
(7)
|
Accounts
payable
|
78
|
|
110
|
Contract
liabilities
|
(8)
|
|
6
|
Accrued salaries,
wages and benefits
|
(35)
|
|
(36)
|
Payments on operating
lease obligation
|
(16)
|
|
(17)
|
Payments from
unconsolidated affiliates, net
|
—
|
|
6
|
Distributions of
earnings from unconsolidated affiliates
|
43
|
|
24
|
Pension
funding
|
(7)
|
|
(4)
|
Other assets and
liabilities
|
(22)
|
|
(40)
|
Total cash flows
provided by operating activities
|
$
91
|
|
$
35
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property,
plant and equipment
|
$
(25)
|
|
$
(19)
|
Proceeds from sale of
assets or investments
|
6
|
|
—
|
Return of (investments
in) equity method joint ventures, net
|
29
|
|
61
|
Other
|
1
|
|
—
|
Total cash flows
provided by investing activities
|
$
11
|
|
$
42
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on long-term
debt
|
24
|
|
—
|
Borrowings on
Revolver
|
93
|
|
—
|
Payments on short-term
and long-term debt
|
(75)
|
|
(4)
|
Payments on settlement
of warrants
|
(33)
|
|
—
|
Debt issuance
costs
|
(16)
|
|
—
|
Payments of dividends
to shareholders
|
(18)
|
|
(16)
|
Payments to reacquire
common stock
|
(61)
|
|
(61)
|
Other
|
(5)
|
|
27
|
Total cash flows
used in financing activities
|
$
(91)
|
|
$
(54)
|
Effect of exchange rate
changes on cash
|
(1)
|
|
4
|
Increase in cash and
cash equivalents
|
10
|
|
27
|
Cash and cash
equivalents at beginning of period
|
304
|
|
389
|
Cash and cash
equivalents at end of period
|
$
314
|
|
$
416
|
Supplemental
disclosure of cash flows information:
|
|
|
|
Noncash financing
activities
|
|
|
|
Dividends
declared
|
$
20
|
|
$
18
|
KBR,
Inc.
|
Backlog
Information
|
(In
millions)
|
(Unaudited)
|
|
|
March
29,
|
|
December
29,
|
|
2024
|
|
2023
|
Government
Solutions
|
$
12,888
|
|
$
12,790
|
Sustainable Technology
Solutions
|
4,363
|
|
4,545
|
Total
backlog
|
$
17,251
|
|
$
17,335
|
Award
options
|
3,596
|
|
4,397
|
Total backlog and
options
|
$
20,847
|
|
$
21,732
|
Total backlog and options at March 29,
2024 totaled $20.8 billion,
down 4% compared to December 29,
2023. Government Solutions backlog and options at
March 29, 2024 totaled $16.5 billion, down $0.7
billion compared to December 29,
2023. Sustainable Technology Solutions backlog at
March 29, 2024 totaled $4.4 billion, down $0.2
billion compared to December 29,
2023.
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 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.
EBITDA and Adjusted EBITDA
We evaluate performance
based on EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin.
EBITDA is defined as Net income attributable to KBR, plus Interest
expense; Other non-operating expense; Provision for income taxes;
and Depreciation and amortization. Adjusted EBITDA excludes certain
amounts included in EBITDA. Adjusted EBITDA margin is calculated as
Adjusted EBITDA divided by Revenues. EBITDA, Adjusted EBITDA, and
Adjusted EBITDA margin for each of the three month periods ended
March 29, 2024 and March 31, 2023 are considered non-GAAP financial
measures under SEC rules because EBITDA and Adjusted EBITDA exclude
certain amounts included in the calculation of net income (loss)
attributable to KBR in accordance with GAAP for such periods.
Management believes EBITDA, Adjusted EBITDA, and Adjusted EBITDA
margin afford investors a view of what management considers KBR's
core performance for each of the three month periods ended
March 29, 2024 and March 31, 2023 and also affords investors the
ability to make a more informed assessment of such core performance
for the comparable periods.
|
Three Months
Ended
|
|
March
29,
|
|
March
31,
|
Dollars in
millions
|
2024
|
|
2023
|
|
|
|
|
Net income
attributable to KBR
|
$
93
|
|
$
86
|
Adjustments
|
|
|
|
•
Interest expense
|
31
|
|
26
|
•
Other non-operating expense
|
6
|
|
2
|
•
Provision for income taxes
|
35
|
|
30
|
•
Depreciation and amortization
|
36
|
|
36
|
EBITDA
|
$
201
|
|
$
180
|
Adjustments
|
|
|
|
•
Acquisition, integration and
restructuring
|
1
|
|
1
|
•
Ichthys commercial resolution
|
4
|
|
2
|
•
Legacy legal fees and
settlements
|
1
|
|
5
|
•
Benefits related to exit from Russian
commercial projects
|
—
|
|
(6)
|
Adjusted
EBITDA
|
$
207
|
|
$
182
|
|
Three Months
Ended
|
|
|
March
29,
|
|
March
31,
|
|
Dollars in
millions
|
2024
|
|
2023
|
|
|
|
|
|
|
Operating
income
|
$
166
|
|
$
144
|
|
Adjustments
|
|
|
|
|
•
Net income attributable to noncontrolling
interests
|
(1)
|
|
—
|
|
•
Depreciation and amortization
|
36
|
|
36
|
|
EBITDA
|
$
201
|
|
$
180
|
|
Adjusted EPS
Adjusted earnings per share
(Adjusted EPS) for each of the three month periods ended
March 29, 2024 and March 31, 2023 is considered a non-GAAP financial
measure under SEC rules because Adjusted EPS excludes certain
amounts included in the Diluted EPS calculated in accordance with
GAAP for such periods. The most directly comparable financial
measure calculated in accordance with GAAP is Diluted EPS for the
same periods. Management believes that Adjusted EPS affords
investors a view of what management considers KBR's core earnings
performance for each of the three month periods ended March 29, 2024 and March
31, 2023 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 for each of the three month
periods ended March 29, 2024 and
March 31, 2023 by adjusting Diluted
EPS for the items included in the table below.
|
Three Months
Ended
|
|
March
29,
|
|
March
31,
|
|
2024
|
|
2023
|
|
|
|
|
Diluted
EPS
|
$
0.69
|
|
$
0.56
|
Adjustments
|
|
|
|
•
Amortization related to
acquisitions
|
0.04
|
|
0.05
|
•
Ichthys commercial dispute
costs
|
0.03
|
|
0.01
|
•
Acquisition, integration and
restructuring
|
0.01
|
|
0.01
|
•
Impact of convert accounting
|
—
|
|
0.05
|
•
Legacy legal fees and
settlements
|
—
|
|
0.02
|
•
Benefits related to exit from Russian
commercial projects
|
—
|
|
(0.03)
|
Adjusted
EPS
|
$
0.77
|
|
$
0.67
|
Diluted weighted
average common shares outstanding
|
135
|
|
154
|
Adjusted weighted
average common shares outstanding
|
135
|
|
140
|
We have calculated the 2024 guidance for Adjusted EPS by
adjusting Diluted EPS for the items included in the table
below.
|
Fiscal 2024
Guidance
|
Diluted
EPS1
guidance
|
$2.88
|
|
$3.08
|
Adjustments
|
|
•
Amortization related to
acquisitions
|
0.15
|
•
Ichthys commercial dispute
costs
|
0.03
|
•
Acquisition, integration and
restructuring
|
0.03
|
•
Legacy legal fees
|
0.01
|
Adjusted
EPS1
guidance
|
$3.10
|
|
$3.30
|
|
---------
|
1
Diluted and Adjusted Fiscal 2024 EPS guidance are calculated using
a share count of approximately 135 million.
|
Adjusted Cash Flows Provided by Operating Activities and
Adjusted Free Cash Flows
Adjusted operating cash flows and
Adjusted free cash flows are considered non-GAAP financial measures
under SEC rules. Adjusted operating cash flows exclude
certain amounts included in the cash flows provided by operating
activities calculated in accordance with GAAP. Adjusted free cash
flows exclude capital expenditures from Adjusted operating cash
flows. The most directly comparable financial measure calculated in
accordance with GAAP is cash flows provided by operating
activities. Management believes that Adjusted operating cash flows
and Adjusted free cash flows afford investors a view of what
management considers KBR's core operating cash flow performance and
also afford investors the ability to make a more informed
assessment of such core operating cash generation performance.
We have calculated Adjusted operating cash flows and Adjusted
free cash flows for each of the three month periods ended
March 29, 2024 and March 31, 2023 by adjusting operating cash flow
provided by operating activities for items included in the table
below.
|
Three Months
Ended
|
|
March
29,
|
|
March
31,
|
Dollars in
millions
|
2024
|
|
2023
|
Cash flows provided by
operating activities
|
$
91
|
|
$
35
|
Add: Legacy legal
settlement (after tax)
|
—
|
|
—
|
Adjust: CARES Act
temporary tax repayment
|
—
|
|
—
|
Adjusted operating
cash flows
|
$
91
|
|
$
35
|
Less: Capital
expenditures
|
(25)
|
|
(19)
|
Adjusted free cash
flows
|
$
66
|
|
$
16
|
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SOURCE KBR, Inc.