SEC Filings

DEF 14A
AECOM filed this Form DEF 14A on 01/23/2019
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Table of Contents

Operating Cash Flow Per Share

 

Free Cash Flow Per Share*


GRAPHIC

Total stockholder return declined 11%

   

GRAPHIC

 

 

Additional Fiscal Year 2018 Financial & Strategic Accomplishments

    Executed on our capital allocation priorities, including continued investments in growth that led to record revenue, wins and backlog, as well as $223 million of debt reduction and a return of capital to stockholders under a $1 billion repurchase authorization, including the execution of a $150 million accelerated share repurchase.

    Took strategic actions to de-risk the business and hone our focus on higher-margin and lower-risk professional services work, where our primarily cost-plus contracting model provides for generally lower risk than fixed-price work. This effort included a process to exit certain aspects of our Oil & Gas business and a decision to no longer pursue work in markets where the risk and reward are not favorable, including our exit from the fixed-price construction of combined cycle natural gas power plants.

    Implemented a new human resources system to better manage our workforce of approximately 87,000 employees and to drive overall labor utilization, which is a key measure of efficiency and profitability. In addition, because our business is human capital intensive, the new human resources system creates the opportunity to reduce costs and enhance margins across the enterprise in fiscal year 2019 and beyond.

    Engaged a leading consulting firm to review our operational and strategic priorities and to develop plans to maximize stockholder value. The result of this process was a plan to increase margins by reducing general and administrative expenses by $225 million as well as ongoing reviews of our portfolio of businesses and countries of operation as part an ongoing process to de-risk, which we are executing on in fiscal 2019.

Addressing Fiscal Year 2018 Challenges

    While we achieved numerous financial and strategic accomplishments in fiscal year 2018 that position us for long-term success, we experienced execution challenges on a handful of projects in our Construction Services ("CS") segment that impacted our underlying profitability. These challenges were avoidable and inconsistent with our previous strong execution track record.

    As a result, we made management changes in our CS segment and implemented a number of enhancements to our risk management and oversight processes designed to ensure future execution aligns with our previous execution track record.

   


*
See Annex B, Reconciliation of Non-GAAP Items.

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