Jacobs Solutions Inc.

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Fiscal First Quarter 2022 Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star 1. Thank you. Jonathan Doros, you may begin your conference.

Jonathan Doros Thank you. Good morning to all. Our earnings announcement and 10Q were filed this morning, and we have posted a copy of this slide presentation on our website, which we will reference during the call. I would like to refer you to slide 2 of the presentation materials for information regarding forward-looking statements, non-GAAP financial measure, and pro forma figures. For pro forma comparisons, current and prior periods include the results of recent acquisitions, including BlackWings, as well as our strategic investment in PA consulting for the full period. Turning to the agenda on slide three. Before I turn to the agenda, I'd like to share that on Friday, March 4th, we'll be releasing a digital deep dive of our new Jacob strategy. We also plan to attend the Raymond James Investor Conference on March 7th in Orlando and the B of A Global Industrials Conference on March 15th in London. Now to the agenda. Speaking on today's call will be our Chair and CEO, Steve Dimitriou, President and Chief Operating Officer, Bob Fregata, and President and Chief Financial Officer, Kevin Berryman. Steve will begin by updating the progress we're making against our strategy and then discuss our data solution strategy, including the acquisition of Streetlight Data. Bob will then review our performance by line of business, and Kevin will provide a more in-depth discussion of our financial metrics, followed by a review of PA Consulting's financial profile, as well as a review of our balance sheet and cash flow. Finally, Steve will provide detail on our updated outlook, along with some closing remarks, and then we'll open the call for your questions. In the appendix of the presentation, we have provided additional ESG-related information, including examples of our leading ESG solutions. With that, I will now pass it over to Steve Dimitriou, Chair and CEO.

Thank you for joining us today to discuss our first quarter fiscal year 2022 business performance and our key strategic initiatives. As we've stated before, we're on the front end of a multi-year growth cycle for the company. This is driven by a combination of secular growth opportunities in our core sectors, such as U.S. infrastructure investments, climate response, a super cycle of supply chain investments in electronics, as well as being at the nexus of disruptive new technologies and domains of space, cyber, and software analytics. We expect these opportunities to drive accelerated revenue growth for the balance of the year. Looking into 2025 and beyond, we envision Jacobs as a company like no other, a company that combines deep domain knowledge of operational environments with the latest advances in technology. We are excited to share a more comprehensive analysis of our strategy at our March investor event. Now let's discuss the first quarter results. During the quarter, at People and Places Solutions, our advanced facilities business delivered double-digit revenue growth and over 20% growth in operating profit, driven by our work with Intel and other global microchip customers, along with growth in life sciences and the electrical vehicle market. And in the Americas, we're also seeing the beginnings of projects related to the U.S. infrastructure bill enter our pipeline. Within critical mission solutions, we had a highly anticipated significant backlog addition from our space-based intelligence surveillance reconnaissance group called Rapid Solutions. The remainder of CMS pipeline remains strong with substantial new award opportunities expected this fiscal year. PA Consulting continued to outperform, posting another triple-double with 21% revenue growth, adjusted operating profit margins of 22%, and double-digit pro forma year-over-year backlog growth. Total Jacobs net revenue increased 6% year-over-year and adjusted EBITDA grew 11% during the quarter. In the first quarter, we experienced strong bookings. As a result, our overall backlog ended the quarter up 12% year-over-year and up 10% on a pro forma basis. Given the strong backlog growth dynamics of our business, we're reiterating our fiscal 2022 adjusted EBITDA and adjusted ETS outlook. Looking beyond 2022, we expect strong organic growth to result in approximately $10 per share of adjusted EPS in fiscal year 2025, excluding any potential deployment of material capital toward M&A opportunities. At our investor event in early March, we'll provide additional detail on how capital deployment and focused new growth opportunities can provide additional upside to this expectation. Turning to slide five, one of the most attractive opportunities for Jacobs is to expand our data and cyber businesses across three focus areas of specialized consulting, operational technology solutions, and data analytics platforms. With a combination of strategic acquisition and key talent additions, we have built a strong business providing data and cyber solutions at scale to protect national security. Expanding beyond national security, as attempts by bad actors to cripple both public and commercial assets and facilities continues to increase, we see accelerating requests for our data and cyber solutions from our critical infrastructure customers. We have developed and acquired a portfolio of high technology solutions, such as synthetic aperture radar technology and the BlackLynx Edge computing platform, which we plan to further scale and commercialize. Jacobs also has numerous software-based analytic solutions across the water, transportation, and environmental verticals, which is now enhanced with the acquisition of Streetlight Data, which I'd now like to discuss in further detail. Moving to slide six. Streetlight Data is a vertical data-as-a-service analytics platform that helps customers gain insights into three high-growth areas. First is understanding mobility and last-mile supply chain analytics of all modes of vehicle and pedestrian movement, as well as trip patterns, both in recent and comprehensive historical data. Second is analyzing the impact of infrastructure investments, including how to plan the expansion of future communities and where and when to deploy electrical vehicle charging solutions and autonomous vehicles to enhance sustainable solutions. and third is measuring the social value impact of infrastructure investments on underserved communities and populations overall as the u.s prepares to embark on one of the largest infrastructure investments in history having access to these analytics will be crucial which is a new multi-billion dollar market for jacobs we view the addressable market for streetlight in three buckets expanding market share with north american transportation focused customer base leveraging into other infrastructure segments, such as water, environmental, and the built environment, exploiting adjacent opportunities by expanding internationally, and developing large disruptive use cases across multiple areas, leveraging Jacob's portfolio of data and technology solutions, including geospatial technology and edge computing capabilities from recently acquired BlackLinks to create expanded market penetration, growth opportunities, and solutions for our clients. The team at Streetlight has built the industry's leading solution, which is deployed throughout several U.S. and Canadian transportation authorities and municipalities. Specifically, Streetlight is multiple software development cycles ahead of the competition, driven by its unique multimodal data analytics mode, proprietary algorithms, and front-end user experience technology. We expect revenue to grow at over a 30% CAGR through 2025. A key part of our strategy is investing, aligning, and integrating our data and digital capabilities to truly advance our scale and gain the financial economics of a high-margin recurring revenue opportunity that further supports high-value client solutions. This streetlight acquisition is an important step in this direction. With that, I'll turn the call over to Bob Pergata to provide more detail by line of business.