News Release
|
Second Quarter Fiscal 2021 |
|
First Half Fiscal 2021 |
||||||
(from Continuing Operations; $ in millions, except EPS) |
As Reported |
Adjusted1 (Non-GAAP) |
As Reported YoY % Change |
Adjusted YoY % Change |
|
As Reported |
Adjusted1 (Non-GAAP) |
As Reported YoY % Change |
Adjusted YoY % Change |
Revenue |
|
-- |
1% |
-- |
|
|
-- |
2% |
-- |
Net Service Revenue (NSR)2 |
-- |
|
-- |
1% |
|
-- |
|
-- |
(2%) |
Operating Income |
|
|
43% |
8% |
|
|
|
51% |
9% |
Segment Operating Margin3 (NSR) |
-- |
13.1% |
-- |
+140 bps |
|
-- |
13.1% |
-- |
+140 bps |
Net Income |
|
|
82% |
14% |
|
|
|
116% |
20% |
EPS (Fully Diluted) |
|
|
97% |
22% |
|
|
|
131% |
28% |
EBITDA4 |
-- |
|
-- |
11% |
|
-- |
|
-- |
10% |
Operating Cash Flow |
|
-- |
NM |
-- |
|
|
-- |
NM |
-- |
Free Cash Flow5 |
-- |
|
-- |
NM |
|
-- |
( |
-- |
NM |
Backlog |
|
-- |
(5%) |
-- |
|
|
|
|
|
Fiscal Second Quarter and First Half Fiscal 2021 Highlights
- As compared to the prior year, second quarter revenue increased by 1% to
$3.3 billion , operating income increased by 43% to$158 million , the operating margin increased by 140 basis points to 4.8%, net income increased by 82% to$88 million and diluted earnings per share increased by 97% to$0.59 . - Net service revenue2 (NSR) of
$1.6 billion in the second quarter increased by 1%, consistent with the Company’s expectations. - The segment adjusted1 operating margin3 on NSR2 increased by 140 basis points to 13.1% for both the second quarter and first half of the year, both record highs for the respective periods and reflective of the actions taken to drive operating efficiencies.
- Adjusted1 EBITDA4 in the second quarter increased by 11% to
$202 million and adjusted diluted earnings per share increased by 22% to a new quarterly record of$0.67 ; both metrics were ahead of the Company’s expectations. - Backlog in the Company’s design business increased by 8% over the prior year, which was offset by a decline in the Construction Management business that was consistent with expectations, resulting in a 5% decrease in total backlog to
$39.4 billion .U.S. federal COVID relief legislation in December and March, combined with improving global economic conditions, have resulted in faster client decision making, a strengthened pipeline of opportunities and strong wins in April.- As underscored in ENR’s most recent rankings,
AECOM increased its ranking in the water design market organically to number two, maintained its market leading position in transportation and facilities design, and remains the number one environmental consulting firm, which positions the Company well to capitalize on opportunities in these markets as funding improves.
Cash Flow, Balance Sheet and Capital Allocation Update
- Second quarter operating cash flow was
$59 million and free cash flow5 was$3 million ; for the first half of the fiscal year, operating cash flow was$66 million and free cash flow was an outflow of$11 million , representing substantially improved cash flow phasing compared to prior fiscal years. - To date, the Company has executed
$755 million of stock repurchases since the beginning ofSeptember 2020 that reduced its fully diluted share count by 15.8 million, or approximately 10% of shares outstanding, at an average price of$48 per share, including$125 million since the Company’s first quarter earnings call. - Additionally, the Company executed several transactions over the past year to strengthen its balance sheet and lower its cost of debt, including extending the maturity of its debt through the redemption of senior notes due 2022 and tender of approximately 75% of its senior notes due 2024, as well as creating a sustainability-linked credit facility.
- The Company currently has
$700 million of capacity remaining under its$1 billion stock repurchase authorization and remains committed to its capital allocation policy, which includes returning to investors substantially all available cash flow after investments are made in the business and maintaining leverage6 below 3.0x.
Fiscal 2021 Financial Guidance
AECOM is increasing its diluted adjusted1 EPS guidance to between$2.65 and$2.85 , which would reflect 28% growth from fiscal 2020 at the mid-point; this guidance incorporates the Company’s first half outperformance, including the benefit of share repurchases completed to-date and a lower expected interest expense related to the Company’s recently completed debt refinancing.- The Company continues to expect adjusted1 EBITDA4 of between
$790 million and$830 million , which would reflect 9% growth at the mid-point of the range. - Other assumptions incorporated into guidance include:
- An average diluted share count for the full year of approximately 150 million.
AECOM Capital earnings of between$5 million to$10 million .
- The Company continues to expect adjusted1 EBITDA4 of between
- The Company continues to expect free cash flow5 of between
$425 million and$625 million in fiscal 2021, which is consistent with the highly cash generative nature of its Professional Services business and reflects 75% unlevered free cash flow conversion of adjusted EBITDA at the mid-point of the range.
“I am proud of how our teams have come together against a backdrop defined by continued uncertainty and an uneven pace of recovery across the globe,” said
“Our teams are collaborating to bring the full strength of our capabilities to bear for our clients around the world through the execution of our Think and Act Globally strategy,” said
“I am very pleased with what we have accomplished in the first half of the fiscal year,” said
Business Segments
Revenue in the second quarter of
Operating income increased by 10% over the prior year to
International
Revenue in the second quarter was
Operating income increased by 28% over the prior year to
Discontinued Operations
In
Balance Sheet
As of
Tax Rate
The effective tax rate was 27.4% in the second quarter. On an adjusted basis, the effective tax rate was 28.4%. The adjusted tax rate was derived by re-computing the annual effective tax rate on earnings from adjusted net income.7 The adjusted tax expense differs from the GAAP tax expense based on the taxability or deductibility and tax rate applied to each of the adjustments.
Reiterated Long-Term Financial Targets
Following its strong performance in the first half of its fiscal year,
Conference Call
1 Excludes the impact of non-operating items, such as non-core operating losses and transaction-related expenses, restructuring costs and other items. See Regulation G Information for a complete reconciliation of non-GAAP measures to the comparable GAAP measures.
2 Revenue, net of subcontractor and other direct costs.
3 Reflects segment operating performance, excluding
4 Net income before interest expense, tax expense, depreciation and amortization.
5 Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from equipment disposals.
6 Gross leverage is comprised of EBITDA as defined in the Company’s credit agreement dated
7 Inclusive of non-controlling interest deduction and adjusted for financing charges in interest expense, the amortization of intangible assets and is based on continuing operations.
8 Return on invested capital, or ROIC, is calculated as the sum of adjusted net income as presented in the Company’s Regulation G Information and interest expense, net of interest income, divided by average quarterly invested capital as defined as the sum of attributable shareholder’s equity and total debt, less cash and cash equivalents.
About
Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, coronavirus impacts, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of
Non-GAAP Financial Information
This press release contains financial information calculated other than in accordance with
Our non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of these non-GAAP measures is found in the Regulation G Information tables at the back of this release.
Consolidated Statements of Income
(unaudited - in thousands, except per share data)
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||||||
|
|
|
|
|
|
% |
|
|
|
|
|
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
3,245,737 |
|
$ |
3,265,573 |
|
0.6 % |
|
$ |
6,481,347 |
|
$ |
6,578,728 |
|
1.5 % |
|
Cost of revenue |
|
3,076,924 |
|
3,070,314 |
|
(0.2)% |
|
6,146,734 |
|
6,199,099 |
|
0.9 % |
|
||||
Gross profit |
|
168,813 |
|
195,259 |
|
15.7 % |
|
334,613 |
|
379,629 |
|
13.5 % |
|
||||
Equity in earnings of joint ventures |
|
13,505 |
|
7,157 |
|
(47.0)% |
|
23,433 |
|
15,358 |
|
(34.5)% |
|
||||
General and administrative expenses |
|
(41,037 |
) |
(36,007 |
) |
(12.3)% |
|
(84,651 |
) |
(74,367 |
) |
(12.1)% |
|
||||
Restructuring costs |
|
(31,213 |
) |
(8,746 |
) |
(72.0)% |
|
(76,138 |
) |
(21,784 |
) |
(71.4)% |
|
||||
Income from operations |
|
110,068 |
|
157,663 |
|
43.2 % |
|
197,257 |
|
298,836 |
|
51.5 % |
|
||||
Other income |
|
2,430 |
|
3,477 |
|
43.1 % |
|
6,438 |
|
7,330 |
|
13.9 % |
|
||||
Interest expense |
|
(37,111 |
) |
(32,800 |
) |
(11.6)% |
|
(77,488 |
) |
(63,451 |
) |
(18.1)% |
|
||||
Income before income tax expense |
|
75,387 |
|
128,340 |
|
70.2 % |
|
126,207 |
|
242,715 |
|
92.3 % |
|
||||
Income tax expense |
|
21,604 |
|
35,148 |
|
62.7 % |
|
37,510 |
|
60,749 |
|
62.0 % |
|
||||
Income from continuing operations |
|
53,783 |
|
93,192 |
|
73.3 % |
|
88,697 |
|
181,966 |
|
105.2 % |
|
||||
Loss from discontinued operations |
|
(130,749 |
) |
(47,914 |
) |
(63.4)% |
|
(112,569 |
) |
(103,666 |
) |
(7.9)% |
|
||||
Net (loss) income |
|
(76,966 |
) |
45,278 |
|
(158.8)% |
|
(23,872 |
) |
78,300 |
|
(428.0)% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to noncontrolling interests |
|
(5,243 |
) |
(4,845 |
) |
(7.6)% |
|
(9,290 |
) |
(10,259 |
) |
10.4 % |
|
||||
Net income attributable to noncontrolling interests |
|
(3,917 |
) |
(1,074 |
) |
(72.6)% |
|
(12,360 |
) |
(2,554 |
) |
(79.3)% |
|
||||
Net income attributable to noncontrolling interests |
|
(9,160 |
) |
(5,919 |
) |
(35.4)% |
|
(21,650 |
) |
(12,813 |
) |
(40.8)% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to |
|
48,540 |
|
88,347 |
|
82.0 % |
|
79,407 |
|
171,707 |
|
116.2 % |
|
||||
Net loss attributable to |
|
(134,666 |
) |
(48,988 |
) |
(63.6)% |
|
(124,929 |
) |
(106,220 |
) |
(15.0)% |
|
||||
Net (loss) income attributable to |
|
$ |
(86,126 |
) |
$ |
39,359 |
|
(145.7)% |
|
$ |
(45,522 |
) |
$ |
65,487 |
|
(243.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net (loss) income attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.31 |
|
$ |
0.60 |
|
93.5 % |
|
$ |
0.50 |
|
$ |
1.15 |
|
130.0 % |
|
Discontinued operations |
|
|
(0.85 |
) |
|
(0.33 |
) |
(61.2)% |
|
|
(0.79 |
) |
|
(0.71 |
) |
(10.1)% |
|
Basic (loss) earnings per share |
|
$ |
(0.54 |
) |
$ |
0.27 |
|
(150.0)% |
|
$ |
(0.29 |
) |
$ |
0.44 |
|
(251.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.30 |
|
$ |
0.59 |
|
96.7 % |
|
$ |
0.49 |
|
$ |
1.13 |
|
130.6 % |
|
Discontinued operations |
|
|
(0.84 |
) |
|
(0.33 |
) |
(60.7)% |
|
|
(0.77 |
) |
|
(0.70 |
) |
(9.1)% |
|
Diluted (loss) earnings per share |
|
$ |
(0.54 |
) |
$ |
0.26 |
|
(148.1)% |
|
$ |
(0.28 |
) |
$ |
0.43 |
|
(253.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
158,550 |
|
147,770 |
|
(6.8)% |
|
157,941 |
|
149,597 |
|
(5.3)% |
|
||||
Diluted |
|
160,718 |
|
149,519 |
|
(7.0)% |
|
160,687 |
|
151,632 |
|
(5.6)% |
|
NM — not meaningful
Balance Sheet Information
(unaudited - in thousands)
|
|
|
|
|
Balance Sheet Information: |
|
|
|
|
Total cash and cash equivalents |
|
|
|
|
Accounts receivable and contract assets – net |
4,532,255 |
|
4,310,875 |
|
Working capital |
1,439,912 |
|
656,529 |
|
Total debt, excluding unamortized debt issuance costs |
2,085,017 |
|
2,126,553 |
|
Total assets |
12,998,951 |
|
11,983,833 |
|
Total |
3,292,558 |
|
2,822,969 |
|
|||||||||||
Reportable Segments |
|||||||||||
(unaudited - in thousands) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
Corporate |
|
Total |
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
||
Revenue |
|
|
|
|
|
|
|
$ - |
|
|
|
Cost of revenue |
|
2,316,726 |
|
753,588 |
|
- |
|
- |
|
3,070,314 |
|
Gross profit |
|
151,675 |
|
42,854 |
|
730 |
|
- |
|
195,259 |
|
Equity in earnings of joint ventures |
|
2,978 |
|
3,003 |
|
1,176 |
|
- |
|
7,157 |
|
General and administrative expenses |
|
- |
|
- |
|
(1,432 |
) |
(34,575 |
) |
(36,007 |
) |
Restructuring costs |
|
- |
|
- |
|
- |
|
(8,746 |
) |
(8,746 |
) |
Income (loss) from operations |
|
|
|
|
|
|
|
$ (43,321 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit as a % of revenue |
|
6.1% |
|
5.4% |
|
- |
|
- |
|
6.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
$ - |
|
|
|
Cost of revenue |
|
2,340,061 |
|
736,863 |
|
- |
|
- |
|
3,076,924 |
|
Gross profit |
|
135,633 |
|
32,672 |
|
508 |
|
- |
|
168,813 |
|
Equity in earnings of joint ventures |
|
5,341 |
|
3,148 |
|
5,016 |
|
- |
|
13,505 |
|
General and administrative expenses |
|
- |
|
- |
|
(1,759 |
) |
(39,278 |
) |
(41,037 |
) |
Restructuring costs |
|
- |
|
- |
|
- |
|
(31,213 |
) |
(31,213 |
) |
Income (loss) from operations |
|
|
|
|
|
|
|
$ (70,491 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit as a % of revenue |
|
5.5% |
|
4.2% |
|
-- |
|
-- |
|
5.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
$ - |
|
|
|
Cost of revenue |
|
4,728,954 |
|
1,470,145 |
|
- |
|
- |
|
6,199,099 |
|
Gross profit |
|
296,707 |
|
81,908 |
|
1,014 |
|
- |
|
379,629 |
|
Equity in earnings of joint ventures |
|
4,385 |
|
6,011 |
|
4,962 |
|
- |
|
15,358 |
|
General and administrative expenses |
|
- |
|
- |
|
(3,361 |
) |
(71,006 |
) |
(74,367 |
) |
Restructuring costs |
|
- |
|
- |
|
- |
|
(21,784 |
) |
(21,784 |
) |
Income (loss) from operations |
|
|
|
|
|
|
|
$ (92,790 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit as a % of revenue |
|
5.9% |
|
5.3% |
|
- |
|
- |
|
5.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted backlog |
|
|
|
|
|
$ - |
|
$ - |
|
|
|
Awarded backlog |
|
18,779,481 |
|
1,084,276 |
|
- |
|
- |
|
19,863,757 |
|
Unconsolidated JV backlog |
|
386,302 |
|
- |
|
- |
|
- |
|
386,302 |
|
Total backlog |
|
|
|
|
|
$ - |
|
$ - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
$ - |
|
|
|
Cost of revenue |
|
4,652,611 |
|
1,494,123 |
|
- |
|
- |
|
6,146,734 |
|
Gross profit |
|
275,065 |
|
58,507 |
|
1,041 |
|
- |
|
334,613 |
|
Equity in earnings of joint ventures |
|
11,770 |
|
5,984 |
|
5,679 |
|
- |
|
23,433 |
|
General and administrative expenses |
|
- |
|
- |
|
(4,178 |
) |
(80,473 |
) |
(84,651 |
) |
Restructuring costs |
|
- |
|
- |
|
- |
|
(76,138 |
) |
(76,138 |
) |
Income (loss) from operations |
|
|
|
|
|
|
|
$ (156,611 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit as a % of revenue |
|
5.6% |
|
3.8% |
|
- |
|
- |
|
5.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted backlog |
|
|
|
|
|
$ - |
|
$ - |
|
|
|
Awarded backlog |
|
22,907,354 |
|
897,933 |
|
- |
|
- |
|
23,805,287 |
|
Unconsolidated JV backlog |
|
775,275 |
|
- |
|
- |
|
- |
|
775,275 |
|
Total backlog |
|
|
|
|
|
$ - |
|
$ - |
|
|
|
|
||||||||||||||||
Regulation G Information |
||||||||||||||||
($ in millions) |
||||||||||||||||
Reconciliation of Revenue to Revenue, Net of Subcontractor and Other Direct Costs (NSR) |
||||||||||||||||
|
Three Months Ended |
|
|
Six Months Ended |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
2,475.7 |
|
$ |
2,557.3 |
|
$ |
2,468.3 |
|
|
$ |
4,927.7 |
|
$ |
5,025.6 |
|
Less: Subcontractor and other direct costs |
|
1,542.5 |
|
|
1,694.3 |
|
|
1,544.7 |
|
|
|
3,088.9 |
|
|
3,239.0 |
|
Revenue, net of subcontractor and other direct costs |
$ |
933.2 |
|
$ |
863.0 |
|
$ |
923.6 |
|
|
$ |
1,838.8 |
|
$ |
1,786.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
769.5 |
|
$ |
755.6 |
|
$ |
796.5 |
|
|
$ |
1,552.6 |
|
$ |
1,552.1 |
|
Less: Subcontractor and other direct costs |
|
143.2 |
|
|
142.6 |
|
|
151.8 |
|
|
|
292.7 |
|
|
294.4 |
|
Revenue, net of subcontractor and other direct costs |
$ |
626.3 |
|
$ |
613.0 |
|
$ |
644.7 |
|
|
$ |
1,259.9 |
|
$ |
1,257.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Performance (excludes ACAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,245.2 |
|
$ |
3,312.9 |
|
$ |
3,264.8 |
|
|
$ |
6,480.3 |
|
$ |
6,577.7 |
|
Less: Subcontractor and other direct costs |
|
1,685.7 |
|
|
1,836.9 |
|
|
1,696.5 |
|
|
|
3,381.6 |
|
|
3,533.4 |
|
Revenue, net of subcontractor and other direct costs |
$ |
1,559.5 |
|
$ |
1,476.0 |
|
$ |
1,568.3 |
|
|
$ |
3,098.7 |
|
$ |
3,044.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,245.7 |
|
$ |
3,313.2 |
|
$ |
3,265.5 |
|
|
$ |
6,481.3 |
|
$ |
6,578.7 |
|
Less: Subcontractor and other direct costs |
|
1,685.7 |
|
|
1,836.9 |
|
|
1,696.5 |
|
|
|
3,381.6 |
|
|
3,533.4 |
|
Revenue, net of subcontractor and other direct costs |
$ |
1,560.0 |
|
$ |
1,476.3 |
|
$ |
1,569.0 |
|
|
$ |
3,099.7 |
|
$ |
3,045.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Debt to Net Debt |
|
||||||
|
Balances at: |
|
|||||
|
|
|
|
|
|
|
|
Short-term debt |
|
|
|
|
|
|
|
Current portion of long-term debt |
25.2 |
|
22.0 |
|
42.2 |
|
|
Long-term debt, gross |
2,101.2 |
|
2,066.4 |
|
2,079.7 |
|
|
Total debt, excluding unamortized debt issuance costs |
2,153.6 |
|
2,090.7 |
|
2,126.6 |
|
|
Less: Total cash and cash equivalents |
1,135.1 |
|
1,044.7 |
|
934.9 |
|
|
Net debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
|
||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
$ |
(299.1 |
) |
$ |
7.1 |
|
$ |
59.2 |
|
$ |
(506.0 |
) |
$ |
66.3 |
|
Capital expenditures, net |
|
(13.4 |
) |
|
(21.3 |
) |
|
(55.9 |
) |
|
(44.5 |
) |
|
(77.2 |
) |
Free cash flow |
$ |
(312.5 |
) |
$ |
(14.2 |
) |
$ |
3.3 |
|
$ |
(550.5 |
) |
$ |
(10.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Regulation G Information |
|||||||||||||||
($ in millions, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income from Operations to Adjusted Income from Operations |
|
||||||||||||||
Income from operations |
$ |
110.1 |
|
$ |
141.2 |
|
$ |
157.6 |
|
$ |
197.3 |
|
$ |
298.8 |
|
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
5.6 |
|
|
- |
|
Accelerated depreciation of project management tool |
|
11.3 |
|
|
- |
|
|
- |
|
|
11.3 |
|
|
- |
|
Restructuring costs |
|
31.2 |
|
|
13.0 |
|
|
8.8 |
|
|
76.1 |
|
|
21.8 |
|
Amortization of intangible assets |
|
6.2 |
|
|
5.3 |
|
|
5.4 |
|
|
12.3 |
|
|
10.7 |
|
Adjusted income from operations |
$ |
158.8 |
|
$ |
159.5 |
|
$ |
171.8 |
|
$ |
302.6 |
|
$ |
331.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income from Continuing Operations Before Taxes to Adjusted Income from Continuing Operations Before Taxes |
|
||||||||||||||
Income from continuing operations before tax expense |
$ |
75.4 |
|
$ |
114.4 |
|
$ |
128.3 |
|
$ |
126.2 |
|
$ |
242.7 |
|
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
5.6 |
|
|
- |
|
Accelerated depreciation of project management tool |
|
11.3 |
|
|
- |
|
|
- |
|
|
11.3 |
|
|
- |
|
Restructuring costs |
|
31.2 |
|
|
13.0 |
|
|
8.8 |
|
|
76.1 |
|
|
21.8 |
|
Amortization of intangible assets |
|
6.2 |
|
|
5.3 |
|
|
5.4 |
|
|
12.3 |
|
|
10.7 |
|
Financing charges in interest expense |
|
0.9 |
|
|
1.8 |
|
|
2.6 |
|
|
2.9 |
|
|
4.4 |
|
Adjusted income from continuing operations before tax expense |
$ |
125.0 |
|
$ |
134.5 |
|
$ |
145.1 |
|
$ |
234.4 |
|
$ |
279.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Taxes for Continuing Operations to Adjusted Income Taxes for Continuing Operations |
|
||||||||||||||
Income tax expense for continuing operations |
$ |
21.6 |
|
$ |
25.6 |
|
$ |
35.1 |
|
$ |
37.5 |
|
$ |
60.7 |
|
Tax effect of the above adjustments* |
|
11.4 |
|
|
5.5 |
|
|
4.6 |
|
|
26.6 |
|
|
10.1 |
|
Valuation allowances and other tax only items |
|
(1.1 |
) |
|
2.7 |
|
|
0.1 |
|
|
(1.5 |
) |
|
2.8 |
|
Adjusted income tax expense for continuing operations |
$ |
31.9 |
|
$ |
33.8 |
|
$ |
39.8 |
|
$ |
62.6 |
|
$ |
73.6 |
|
*Adjusts income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Attributable to Noncontrolling Interests from Continuing Operations to Adjusted Net Income Attributable to Noncontrolling Interests from Continuing Operations |
|
||||||||||||||
Net income attributable to noncontrolling interests from continuing operations |
$ |
(5.3 |
) |
$ |
(5.4 |
) |
$ |
(4.9 |
) |
$ |
(9.3 |
) |
$ |
(10.3 |
) |
Amortization of intangible assets included in NCI, net of tax |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.2 |
) |
|
(0.2 |
) |
|
(0.3 |
) |
Adjusted net income attributable to noncontrolling interests from continuing operations |
$ |
(5.4 |
) |
$ |
(5.5 |
) |
$ |
(5.1 |
) |
$ |
(9.5 |
) |
$ |
(10.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Attributable to |
|
||||||||||||||
Net income attributable to |
$ |
48.5 |
|
$ |
83.4 |
|
$ |
88.3 |
|
$ |
79.4 |
|
$ |
171.7 |
|
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
5.6 |
|
|
- |
|
Accelerated depreciation of project management tool |
|
11.3 |
|
|
- |
|
|
- |
|
|
11.3 |
|
|
- |
|
Restructuring costs |
|
31.2 |
|
|
13.0 |
|
|
8.8 |
|
|
76.1 |
|
|
21.8 |
|
Amortization of intangible assets |
|
6.2 |
|
|
5.3 |
|
|
5.4 |
|
|
12.3 |
|
|
10.7 |
|
Financing charges in interest expense |
|
0.9 |
|
|
1.8 |
|
|
2.6 |
|
|
2.9 |
|
|
4.4 |
|
Tax effect of the above adjustments* |
|
(11.5 |
) |
|
(5.5 |
) |
|
(4.6 |
) |
|
(26.7 |
) |
|
(10.1 |
) |
Valuation allowances and other tax only items |
|
1.1 |
|
|
(2.7 |
) |
|
(0.1 |
) |
|
1.5 |
|
|
(2.8 |
) |
Amortization of intangible assets included in NCI, net of tax |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.2 |
) |
|
(0.2 |
) |
|
(0.3 |
) |
Adjusted net income attributable to |
$ |
87.6 |
|
$ |
95.2 |
|
$ |
100.2 |
|
$ |
162.2 |
|
$ |
195.4 |
|
* Adjusts the income tax expense (benefit) during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
|
|
|||||||||||||||||||||||||||
Regulation G Information |
|||||||||||||||||||||||||||
($ in millions, except per share data) |
|||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reconciliation of Net Income Attributable to |
|
||||||||||||||||||||||||||
Net income attributable to |
$ |
0.30 |
|
$ |
0.54 |
|
$ |
0.59 |
|
$ |
0.49 |
|
$ |
1.13 |
|
||||||||||||
Per diluted share adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
0.03 |
|
|
- |
|
||||||||||||
Accelerated depreciation of project management tool |
|
0.07 |
|
|
- |
|
|
- |
|
|
0.07 |
|
|
- |
|
||||||||||||
Restructuring costs |
|
0.19 |
|
|
0.09 |
|
|
0.06 |
|
|
0.47 |
|
|
0.14 |
|
||||||||||||
Amortization of intangible assets |
|
0.04 |
|
|
0.04 |
|
|
0.04 |
|
|
0.08 |
|
|
0.07 |
|
||||||||||||
Financing charges in interest expense |
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
|
0.03 |
|
||||||||||||
Tax effect of the above adjustments* |
|
(0.07 |
) |
|
(0.04 |
) |
|
(0.04 |
) |
|
(0.16 |
) |
|
(0.06 |
) |
||||||||||||
Valuation allowances and other tax only items |
|
0.01 |
|
|
(0.02 |
) |
|
- |
|
|
0.01 |
|
|
(0.02 |
) |
||||||||||||
Adjusted net income attributable to |
$ |
0.55 |
|
$ |
0.62 |
|
$ |
0.67 |
|
$ |
1.01 |
|
$ |
1.29 |
|
||||||||||||
Weighted average shares outstanding – basic |
|
158.6 |
|
|
151.4 |
|
|
147.8 |
|
|
157.9 |
|
|
149.6 |
|
||||||||||||
Weighted average shares outstanding – diluted |
|
160.7 |
|
|
153.7 |
|
|
149.5 |
|
|
160.7 |
|
|
151.6 |
|
||||||||||||
* Adjusts the income tax expense (benefit) during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
|||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||
Reconciliation of Net Income Attributable to |
|
||||||||||||||||||||||||||
Net income attributable to |
$ |
48.5 |
|
$ |
83.4 |
|
$ |
88.3 |
|
$ |
79.4 |
|
$ |
171.7 |
|
||||||||||||
Income tax expense |
|
21.6 |
|
|
25.6 |
|
|
35.1 |
|
|
37.5 |
|
|
60.7 |
|
||||||||||||
Depreciation and amortization expense1 |
|
48.7 |
|
|
39.4 |
|
|
41.1 |
|
|
89.8 |
|
|
80.5 |
|
||||||||||||
Interest income2 |
|
(3.6 |
) |
|
(1.3 |
) |
|
(1.2 |
) |
|
(7.0 |
) |
|
(2.5 |
) |
||||||||||||
Interest expense |
|
37.1 |
|
|
30.7 |
|
|
32.8 |
|
|
77.4 |
|
|
63.5 |
|
||||||||||||
Amortized bank fees included in interest expense |
|
(1.3 |
) |
|
(1.8 |
) |
|
(2.6 |
) |
|
(3.3 |
) |
|
(4.4 |
) |
||||||||||||
EBITDA |
$ |
151.0 |
|
$ |
176.0 |
|
$ |
193.5 |
|
$ |
273.8 |
|
$ |
369.5 |
|
||||||||||||
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
5.6 |
|
|
- |
|
||||||||||||
Restructuring costs |
|
31.2 |
|
|
13.0 |
|
|
8.8 |
|
|
76.2 |
|
|
21.8 |
|
||||||||||||
Adjusted EBITDA |
$ |
182.2 |
|
$ |
189.0 |
|
$ |
202.3 |
|
$ |
355.6 |
|
$ |
391.3 |
|
||||||||||||
Other income |
|
(2.4 |
) |
|
(3.9 |
) |
|
(3.4 |
) |
|
(6.4 |
) |
|
(7.3 |
) |
||||||||||||
Depreciation1 |
|
(30.0 |
) |
|
(32.4 |
) |
|
(33.3 |
) |
|
(63.1 |
) |
|
(65.7 |
) |
||||||||||||
Interest income2 |
|
3.6 |
|
|
1.3 |
|
|
1.2 |
|
|
7.0 |
|
|
2.5 |
|
||||||||||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax |
|
5.3 |
|
|
5.4 |
|
|
4.8 |
|
|
9.3 |
|
|
10.2 |
|
||||||||||||
Amortization of intangible assets included in NCI, |
|
0.1 |
|
|
0.1 |
|
|
0.2 |
|
|
0.2 |
|
|
0.3 |
|
||||||||||||
Adjusted income from operations |
$ |
158.8 |
|
$ |
159.5 |
|
$ |
171.8 |
|
$ |
302.6 |
|
$ |
331.3 |
|
||||||||||||
1 Excludes depreciation from discontinued operations, non-core operating losses, and accelerated depreciation of project management tool 2 Included in other income |
|
||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Reconciliation of Segment Income from Operations to Adjusted Income from Operations |
|
|
|
|
|
|
|
||||||||||||||||||||||||
Americas Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income from operations |
$ |
141.0 |
|
$ |
146.4 |
|
$ |
154.7 |
|
$ |
286.8 |
|
$ |
301.1 |
|
|
|||||||||||||||
Amortization of intangible assets |
|
4.8 |
|
|
4.3 |
|
|
4.4 |
|
|
9.5 |
|
|
8.7 |
|
|
|||||||||||||||
Adjusted income from operations |
$ |
145.8 |
|
$ |
150.7 |
|
$ |
159.1 |
|
$ |
296.3 |
|
$ |
309.8 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
International Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income from operations |
$ |
35.8 |
|
$ |
42.1 |
|
$ |
45.8 |
|
$ |
64.5 |
|
$ |
87.9 |
|
|
|||||||||||||||
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
(0.1 |
) |
|
- |
|
|
|||||||||||||||
Amortization of intangible assets |
|
1.4 |
|
|
1.0 |
|
|
1.0 |
|
|
2.8 |
|
|
2.0 |
|
|
|||||||||||||||
Adjusted income from operations |
$ |
37.2 |
|
$ |
43.1 |
|
$ |
46.8 |
|
$ |
67.2 |
|
$ |
89.9 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Segment Performance (excludes ACAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income from operations |
$ |
176.8 |
|
$ |
188.5 |
|
$ |
200.5 |
|
$ |
351.3 |
|
$ |
389.0 |
|
|
|||||||||||||||
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
(0.1 |
) |
|
- |
|
|
|||||||||||||||
Amortization of intangible assets |
|
6.2 |
|
|
5.3 |
|
|
5.4 |
|
|
12.3 |
|
|
10.7 |
|
|
|||||||||||||||
Adjusted income from operations |
$ |
183.0 |
|
$ |
193.8 |
|
$ |
205.9 |
|
$ |
363.5 |
|
$ |
399.7 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|||||
Regulation G Information |
|||||
FY2021 GAAP EPS Guidance based on Adjusted EPS Guidance |
|||||
(all figures approximate) |
Fiscal Year End 2021 |
|
|||
GAAP EPS Guidance |
|
|
|
||
Adjusted EPS excludes: |
|
|
|
||
Amortization of intangible assets |
|
|
|
||
Amortization of deferred financing fees |
|
|
|
||
Restructuring |
|
|
|
||
Tax effect of the above items |
|
( |
|
||
Adjusted EPS Guidance |
|
|
|
||
FY2021 GAAP Net Income Attributable to |
|||||||
(in millions, all figures approximate) |
Fiscal Year End 2021 |
|
|||||
GAAP net income attributable to |
|
|
|
||||
Adjusted net income attributable to |
|
|
|
||||
Amortization of intangible assets |
|
|
|
||||
Amortization of deferred financing fees |
|
|
|
||||
Restructuring* |
|
|
|
||||
Tax effect of the above items |
|
( |
|
||||
Adjusted net income attributable to |
|
|
|
||||
Adjusted EBITDA excludes: |
|
|
|
||||
Adjusted interest expense, net |
|
|
|
||||
Depreciation |
|
|
|
||||
Income tax expense |
|
|
|
||||
Adjusted EBITDA Guidance |
|
|
|
||||
* Calculated based on the mid-point of AECOM’s fiscal year 2021 EPS guidance. |
|
||||||
FY2021 GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance |
|||||
(in millions, all figures approximate) |
Fiscal Year End 2021 |
|
|||
GAAP Interest Expense Guidance |
|
|
|
||
Financing charges in interest expense |
|
( |
|
||
Interest income |
|
( |
|
||
Adjusted Interest Expense Guidance |
|
|
|
||
FY2021 GAAP Income from Operations as a % of Revenue Guidance based on Segment Adjusted Operating Income as a % of Net Service Revenue Guidance |
(all figures approximate) |
Fiscal Year End 2021 |
|||
Income from operations as a % of revenue |
|
4.7% |
|
|
ACAP income from operations |
|
(0.1)% |
|
|
Corporate net expense |
|
1.1% |
|
|
Restructuring expenses* |
|
0.3% |
|
|
Subcontractor and other direct costs |
|
7.0% |
|
|
Amortization of intangible assets |
|
0.2% |
|
|
Segment adjusted operating income as a % of net service revenue |
|
13.2% |
|
|
FY2021 GAAP Operating Cash Flow Guidance based on Free Cash Flow Guidance |
(in millions, all figures approximate) |
Fiscal Year End 2021 |
|
|||
Operating cash flow guidance |
|
|
|
||
Capital expenditures, net of proceeds from equipment disposals |
|
( |
|
||
Free cash flow guidance |
|
|
|
||
* Calculated based on the mid-point of AECOM’s fiscal year 2021 EPS guidance Note: Variances in tables are due to rounding. |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210510005904/en/
Investor Contact:
Senior Vice President, Finance, Treasurer
213.593.8208
William.Gabrielski@aecom.com
Media Contact:
Vice President,
213.996.2367
Brendan.Ranson-Walsh@aecom.com
Source: