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AECOM reports first-quarter fiscal year 2012 financial results
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Reports backlog of $15.8 billion

  • First-quarter diluted earnings per share of 42 cents.
  • Net income for the first quarter of $48 million.
  • Revenue, net of other direct costs, for the first quarter of $1.2 billion.
  • Revenue for the first quarter of $2.0 billion.
  • Total backlog at Dec. 31, 2011, of $15.8 billion.
  • First-quarter cash flow from operations improved by $173 million year over year.
  • Diluted earnings per share range outlook of $2.45 to $2.65 for full fiscal year 2012.

LOS ANGELES--(BUSINESS WIRE)--Feb. 2, 2012-- AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for public and private sector clients in more than 130 countries around the world, announced today its financial results for the first quarter of fiscal year 2012, which ended Dec. 31, 2011.

AECOM reported net income of $48 million for the first quarter and diluted earnings per share (EPS) of 42 cents for the first quarter. This represents a decrease of 16% from net income of $57 million and a decrease of 13% from diluted earnings per share of 48 cents for the same period last year. Operating income for the first quarter was $77 million, a decrease of 15% from the same period last year.

First-quarter revenue was $2.0 billion, a 5% increase from the first quarter of fiscal year 2011. AECOM’s gross revenue includes a significant amount of pass-through costs and, therefore, the company believes that revenue, net of other direct costs, which is a non-GAAP measure and excludes such pass-through costs, also provides a valuable perspective on its business results. First-quarter revenue, net of other direct costs, was $1.2 billion, representing a 1% increase over the same period last year. Organic revenue, net of other direct costs, for the first quarter increased 0.4% year over year. Organic revenue, net of other direct costs, excludes revenue, net of other direct costs, from acquired companies, which is defined as revenue, net of other direct costs, included in the current period up to 12 months subsequent to their acquisition date.

“Our results for the first quarter are in line with our expectations and consistent with what we discussed on our fourth-quarter earnings call. We maintain our outlook for the full year,” said John M. Dionisio, AECOM chairman and chief executive officer. “More importantly, we delivered key wins across our diversified platform during the quarter – highlighted by significant backlog growth in our emerging markets and across our geographies. We are well positioned to build on this momentum.”

Business Segments

In addition to providing consolidated financial results, AECOM reports separate financial information for its two segments: Professional Technical Services (PTS) and Management Support Services (MSS).

Professional Technical Services

The PTS segment delivers planning, consulting, architecture and engineering design, and program and construction management services to institutional, commercial and public sector clients worldwide.

For the first quarter of fiscal year 2012, the PTS segment reported revenue of $1.8 billion and revenue, net of other direct costs, of $1.1 billion, compared to revenue of $1.6 billion and revenue, net of other direct costs, of $1.08 billion in the same period last year. This represents a 15% increase in revenue and a 1% increase in revenue, net of other direct costs. PTS segment operating income was $87.3 million compared to $91.6 million last year.

Management Support Services

The MSS segment provides facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, primarily for agencies of the U.S. government.

For the first quarter of fiscal year 2012, the MSS segment reported revenue of $221.8 million and revenue, net of other direct costs, of $129.9 million, compared to revenue of $360.4 million, and revenue, net of other direct costs, of $129.0 million for the same period during fiscal year 2011. This represents a 38% decrease in revenue contrasted by a 1% increase in revenue, net of other direct costs, highlighting a change in the mix of the business. In addition, the MSS segment reported operating income of $12.0 million compared to $21.8 million for the same period during fiscal year 2011.

Cash Flow and Balance Sheet

Cash flow from operations for the first quarter of fiscal year 2012 improved by $173 million from the prior year to negative $6 million. As of Dec. 31, 2011, AECOM had $507 million of total cash and cash equivalents, $1.2 billion of debt with $1.05 billion in committed bank facilities that have $842 million in unused capacity.

Backlog

AECOM announced backlog of $15.8 billion at Dec. 31, 2011, a 2% increase year over year. Excluding backlog obtained through acquisitions, total backlog increased 2% year over year.

Outlook

“Our $2.2 billion in new wins during the first quarter, coupled with the visibility provided by our backlog of $15.8 billion, give us confidence in the balance of fiscal 2012 and beyond,” said Michael S. Burke, AECOM president. “The positive momentum that we delivered in our power, energy and mining markets during the quarter reflects our ability to optimize our operational performance this year and over the long term.”

AECOM expects diluted earnings per share results for fiscal year 2012 to be in the range of $2.45 to $2.65. The 2012 earnings guidance range includes the following key assumptions: 2012 tax rate of 29%, inclusive of non-controlling interest deduction; interest expense of $43 million; amortization of intangibles expense of $24 million; depreciation expense of $76 million; and full-year share count of 115 million.

AECOM is hosting a conference call at 11 a.m. Eastern Time, during which management will make a brief presentation focusing on the company's results, strategies and operating trends. Those wishing to dial in to the call via telephone can do so by dialing 1-866-831-6272 or 1-617-213-8859 and entering the passcode 43843171. Interested parties also can listen to the conference call via webcast at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.aecom.com%2F&esheet=50154904&lan=en-US&anchor=www.aecom.com&index=1&md5=0110f3e89caaf9cb2f40d12ff8ee280f. The webcast will be available for replay following the call. The accompanying presentation slides currently are available on the site.

About AECOM

AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation, and technical excellence in delivering solutions that create, enhance and sustain the world's built, natural, and social environments. A Fortune 500 company, AECOM serves clients in more than 130 countries and had revenue of $8.1 billion during the 12 months ended Dec. 31, 2011. More information on AECOM and its services can be found at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.aecom.com%2F&esheet=50154904&lan=en-US&anchor=www.aecom.com&index=2&md5=87205da63f922f3ec1e4fa308c735577.

Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings or other financial items; any statements of the plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements.

Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in forward-looking statements include: uncertainties related to funding, audits, modifications and termination of long-term government contracts; losses under fixed-price contracts; limited control over operations run through our joint venture entities; misconduct by our employees or consultants or our failure to comply with laws or regulations; failure to successfully execute our merger and acquisition strategy; the need to retain and recruit key technical and management personnel; and unexpected adjustments and cancellations related to our backlog. Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in our reports filed with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statement.

 

AECOM Technology Corporation

Consolidated Statements of Income
(unaudited - in thousands, except per share data)
 
      Three Months Ended
December 31,

2011

    December 31,

2010

 
Revenue $ 2,029,180 $ 1,936,183
Other direct costs   798,331   722,406
Revenue, net of other direct costs (non-GAAP) 1,230,849 1,213,777
Cost of revenue, net of other direct costs   1,140,503   1,108,442
Gross profit 90,346 105,335
 
Equity in earnings of joint ventures 8,962 8,097
General and administrative expenses   22,611   23,262
Income from operations 76,697 90,170
 
Other income 1,919 2,288
Interest expense, net   (10,614

)

 

  (9,872

)

 

Income before income tax expense 68,002 82,586
 
Income tax expense   19,578   20,503
 
Net income 48,424 62,083
 
Non-controlling interest in income of consolidated subsidiaries, net of tax (493

)

 

(5,215

)

 

   
Net income attributable to AECOM $ 47,931 $ 56,868
 
Net income allocation:
Preferred stock dividend $ $ 2

 

Net income available for common stockholders   47,931   56,866
Net income attributable to AECOM $ 47,931 $ 56,868
 
Net income attributable to AECOM per share:
Basic and diluted $ 0.42 $ 0.48
 
Weighted average shares outstanding:
Basic 113,965 118,001
Diluted 114,591 119,115
 

AECOM Technology Corporation

   
Balance Sheet and Cash Flow Information
(unaudited - in thousands)
             
December 31,

2011

September 30,

2011

Balance Sheet Information:
Cash and cash equivalents $ 507,486 $ 456,940
Accounts receivable, net 2,513,914 2,380,181
Working capital 1,304,958 1,175,620
Working capital, net of cash and cash equivalents 797,472 718,680
 
Total debt 1,241,535 1,162,469
Total assets 5,994,615 5,789,328
Total stockholders’ equity 2,412,306 2,339,711
 
 
 
Three Months Ended
December 31,

2011

December 31,

2010

Cash Flow Information:
Net cash used in operating activities* $ (6,426 ) $ (179,345 )
 

* Dec. 31, 2010, amount includes deferred compensation plan termination ($90 million) and associated excess tax
benefits ($58 million).

 

AECOM Technology Corporation

   
Reportable Segments
(in thousands)
                     

Professional
Technical
Services

Management
Support
Services

Corporate Total
Three Months Ended December 31, 2011
Revenue $ 1,807,404 $ 221,776 $ — $ 2,029,180
Other direct costs 706,536 91,795 798,331
Revenue, net of other direct costs (non-GAAP) 1,100,868 129,981 1,230,849
Cost of revenue, net of other direct costs 1,016,107 124,396 1,140,503
Gross profit 84,761 5,585 90,346
Equity in earnings of joint ventures 2,492 6,470 8,962
General and administrative expenses 22,611 22,611
Income from operations $ 87,253 $ 12,055 $ (22,611

)

$ 76,697
 
Gross profit as a % of revenue 4.7% 2.5% 4.5%

Gross profit as a % of revenue, net of other
  direct costs (non-GAAP)

7.7% 4.3% 7.3%
 
Contracted backlog $ 7,664,175 $ 888,615 $ — $ 8,552,790
Awarded backlog 6,078,771 1,194,993   7,273,764
Total backlog $ 13,742,946 $ 2,083,608 $ — $ 15,826,554
 
 
Three Months Ended December 31, 2010
Revenue $ 1,575,771 $ 360,412 $ — $ 1,936,183
Other direct costs 490,964 231,442 722,406
Revenue, net of other direct costs (non-GAAP) 1,084,807 128,970 1,213,777
Cost of revenue, net of other direct costs 995,273 113,169 1,108,442
Gross profit 89,534 15,801 105,335
Equity in earnings of joint ventures 2,110 5,987 8,097
General and administrative expenses 23,262 23,262
Income from operations $ 91,644 $ 21,788 $ (23,262

)

$ 90,170
 
Gross profit as a % of revenue 5.7% 4.4% 5.4%

Gross profit as a % of revenue, net of other
  direct costs (non-GAAP)

8.3% 12.3% 8.7%
 
Contracted backlog $ 7,398,598 $ 492,050 $ — $ 7,890,648
Awarded backlog 5,649,886 1,968,717 7,618,603
Total backlog $ 13,048,484 $ 2,460,767 $ — $ 15,509,251
 

AECOM Technology Corporation

   
Regulation G Information
($ in millions)
 

Reconciliation of Revenue to Revenue, Net of Other Direct Costs

   
Three Months Ended

December
31, 2011

     

December 31,
2010

Consolidated

Revenue $ 2,029.2 $ 1,936.2
Less: Other direct costs   798.4   722.4
Revenue, net of other direct costs $ 1,230.8 $ 1,213.8
 

PTS Segment

Revenue $ 1,807.4 $ 1,575.8
Less: Other direct costs   706.5   491.0
Revenue, net of other direct costs $ 1,100.9 $ 1,084.8
 

MSS Segment

Revenue $ 221.8 $ 360.4
Less: Other direct costs   91.9   231.4
Revenue, net of other direct costs $ 129.9 $ 129.0
 

Reconciliation of Amounts Provided by Acquired Companies

   
   
Three Months Ended December 31, 2011
Total      

Provided by
Acquired
Companies

     

Excluding
Effect of
Acquired
Companies

Consolidated

Revenue, net of other direct costs $ 1,230.8 $ 12.1 $ 1,218.7
 

Reconciliation of EBITDA to Net Income Attributable to AECOM

 
        Three Months Ended

Dec 31,
2011

     

Sep 30,
2011

     

Jun 30,
2011

     

Mar 31,
2011

     

Dec 31,
2010

     

Sep 30,
2010

     

Jun 30,
2010

     

Mar 31,
2010

 
EBITDA $ 103.0 $ 157.8 $ 136.2 $ 114.3 $ 117.1 $ 125.8 $ 105.9 $ 100.3
Less: Interest (income) / expense* 10.0 8.9 10.4 10.0 9.9 5.3 1.2 2.4
Less: Depreciation and amortization 25.5 25.1 28.0 27.4 29.8 21.2 17.2 18.2
 

Income from continuing operations
attributable to AECOM before income taxes

67.5 123.8 97.8 76.9 77.4 99.3 87.5 79.7
Less: Income tax expense 19.6 36.4 24.0 19.2 20.5 31.5 22.7 21.0
 

Income from continuing operations
attributable to AECOM

47.9 87.4 73.8 57.7 56.9 67.8 64.8 58.7
Discontinued operations, net of tax (0.2 )
 
Net income attributable to AECOM $ 47.9 $ 87.4 $ 73.8 $ 57.7 $ 56.9 $ 67.8 $ 64.8 $ 58.5
 
      Fiscal Years Ended September 30
2011       2010       2009       2008
 
EBITDA $ 525.4 $ 417.5 $ 358.5 $ 284.5
Less: Interest (income) / expense* 39.2 9.9 10.7 (1.3 )
Less: Depreciation and amortization   110.3   78.9   84.1   62.8
 

Income from continuing operations
attributable to AECOM before income taxes

375.9 328.7 263.7 223.0
Less: Income tax expense   100.1   91.7   77.0   76.5
 

Income from continuing operations
attributable to AECOM

275.8 237.0 186.7 146.5
Discontinued operations, net of tax     (0.1 )   3.0   0.7
 
Net income attributable to AECOM $ 275.8 $ 236.9 $ 189.7 $ 147.2

* Excluding related amortization.

NR 12-0201

Source: AECOM Technology Corporation

AECOM Technology Corporation
Media:
Paul Gennaro, 212.973.3167
SVP & Chief Communications Officer
Paul.Gennaro@aecom.com
or
Investors:
Paul Cyril, 212.973.2982
SVP, Investor Relations
Paul.Cyril@aecom.com