|AECOM filed this Form 10-Q on 02/06/2019|
Results of Operations
Three months ended December 31, 2018 compared to the three months ended December 31, 2017
The following table presents the percentage relationship of statement of operations items to revenue:
Our revenue for the three months ended December 31, 2018 increased $126.7 million, or 2.6%, to $5,037.5 million as compared to $4,910.8 million for the corresponding period last year.
The increase in revenue for the three months ended December 31, 2018 was primarily attributable to an increase in our DCS segment of $87.8 million, a decrease in our CS segment of $111.0 million, an increase in our MS segment of $146.0 million, and an increase in our ACAP segment of $3.9 million, as discussed further below.
In the course of providing our services, we routinely subcontract for services and incur other direct costs on behalf of our clients. These costs are passed through to clients and, in accordance with industry practice and GAAP, are included in our revenue and cost of revenue. Because subcontractor and other direct costs can change significantly from project to project and period to period, changes in revenue may not be indicative of business trends. Subcontractor and other direct costs for the quarters ended December 31, 2018 and 2017 were $2.7 billion and $2.6 billion, respectively. Subcontractor costs and other direct costs as a percentage of revenue, were 53% during the three months ended December 31, 2018 and December 31, 2017.