|AECOM filed this Form 10-Q on 02/06/2019|
The following table presents the percentage relationship of statement of operations items to revenue:
Revenue for our MS segment for the three months ended December 31, 2018 increased $146.0 million, or 17.3%, to $989.4 million as compared to $843.4 million for the corresponding period last year.
The increase in revenue for the quarter ended December 31, 2018 was primarily due to a project with the federal government.
Gross profit for our MS segment for the three months ended December 31, 2018 increased $16.5 million, or 52.7%, to $47.8 million as compared to $31.3 million for the corresponding period last year. As a percentage of revenue, gross profit increased to 4.8% of revenue for the three months ended December 31, 2018 from 3.7% in the corresponding period last year.
The increase in gross profit was primarily due to a project with the federal government.
* NM Not Meaningful
Results of operations for ACAP did not significantly change for the three months ended December 31, 2018 compared to the same period in the prior year.
We experience seasonal trends in our business. The first quarter of our fiscal year (October 1 to December 31) is typically our weakest quarter. The harsher weather conditions impact our ability to complete work in parts of North America and the holiday season schedule affects our productivity during this period. Our revenue is typically higher in the last half of the fiscal year. Many U.S. state governments with fiscal years ending on June 30 tend to accelerate spending during their first quarter, when new funding becomes available. In addition, we find that the U.S. federal government tends to authorize more work during the period preceding the end of our fiscal year, September 30. Further, our construction management revenue typically increases during the high construction season of the summer months. Within the United States, as well as other parts of the world, our business generally benefits from milder weather conditions in our fiscal fourth quarter, which allows for more productivity from our on-site civil services. For these reasons, coupled with the number and significance of client contracts commenced and completed during a period, as well as the time of expenses incurred for corporate initiatives, it is not unusual for us to experience seasonal changes or fluctuations in our quarterly operating results.
Liquidity and Capital Resources
As a result of the U.S. federal governments partial shutdown beginning in December 2018, we have experienced delays in federal payments during the three-month period ended December 31, 2018 that impacted operational cash flow. Continuation of the U.S. federal government shutdown could significantly reduce demand for our services, result in further payment delays, and lead to workforce reductions that may have a material adverse effect on our results of operation and financial condition.