News Release

AECOM Reports Net Income, Revenue, Backlog for Fourth Quarter, Full Fiscal Year 2008
  • Fourth-quarter diluted earnings per share increased 41% year over year to 41 cents, including 1 cent per share from discontinued operations.
  • Diluted earnings per share for the year ended September 30 increased 23% year over year to $1.41, including 1 cent per share from discontinued operations.
  • Net income for fourth quarter increased 48% year over year to $43.5 million.
  • Net income for year ended September 30 increased 47% year over year to $147.2 million.
  • Revenue for fourth quarter increased 46% year over year to $1.6 billion.
  • Revenue for year ended September 30 increased 23% year over year to $5.2 billion.
  • Cash flow from operations increased by 15% to $158.1 million for year ended September 30.
  • Total backlog at September 30 increased 43% year over year to $8.6 billion.
  • Diluted earnings-per-share range outlook of $1.60 to $1.70 provided for full fiscal year 2009.

LOS ANGELES--(BUSINESS WIRE)--Nov. 12, 2008--AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today its financial results for the fourth quarter and full fiscal year ended September 30, 2008.

AECOM reported net income of $43.5 million for the fourth quarter and diluted earnings per share (EPS) from continuing operations of 40 cents for the fourth quarter. This represents an increase of 48% over net income of $29.4 million for the same period last year and an increase of 38% over diluted earnings per share of 29 cents for the same period last year.

The above diluted EPS from continuing operations excludes 1 cent of earnings per share from discontinued operations for the fourth quarter 2008. Those operations were associated with the non-strategic assets acquired as part of the July 2008 Earth Tech transaction that AECOM has either divested or intends to divest.

Fourth-quarter revenue increased to $1.6 billion, 46% higher than the fourth quarter of fiscal year 2007. 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, also provides a valuable perspective on its business results. Fourth-quarter revenue, net of other direct costs, increased to $1.0 billion, 51% higher than the same period last year.

For the full fiscal year 2008, AECOM reported net income of $147.2 million and diluted EPS from continuing operations of $1.40. This represents an increase of 47% over net income of $100.3 million for the same period last year and an increase of 22% over diluted EPS of $1.15 for the same period last year.

Revenue for fiscal year 2008 was $5.2 billion - 23% higher than fiscal year 2007. For fiscal year 2008, the company's revenue, net of other direct costs, increased 37% to $3.3 billion.

"Our results were marked by solid, sustained growth across our practice areas and throughout virtually all our global operations," said John M. Dionisio, AECOM president and chief executive officer. "We finished the fiscal year with a number of key wins that reflect the continued demand in the global infrastructure market. Looking forward, we intend to continue to leverage AECOM's market and geographic diversification to drive organic growth balanced by acquisitive growth that is a hallmark of our business model."

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 government clients worldwide.

For the fourth quarter of fiscal year 2008, the PTS segment reported revenue of $1.4 billion and operating income of $90.7 million. This represents an increase of 51% over revenue of $917.2 million for the same period last year and an increase of 71% over operating income of $52.9 million for the same period last year. For the full year, the PTS segment reported revenue of $4.3 billion and operating income of $275.2 million. This represents an increase of 27% over revenue of $3.4 billion for the same period last year and an increase of 52% over operating income of $181.2 million for the same period last year.

PTS revenue, net of other direct costs, increased 51% for the fourth quarter of fiscal year 2008, to $964.1 million. For the full fiscal year 2008, PTS revenue, net of other direct costs, increased 36% to $3.1 billion.

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 fourth quarter of fiscal year 2008, the MSS segment reported revenue of $246.7 million and operating income of $6.1 million. This represents an increase of 25% over revenue of $197.1 million for the same period last year and a decrease of 5% from operating income of $6.5 million for the same period last year. MSS operating income results for the quarter were negatively impacted by reserves that were established for a pending government contract modification. For the full year, the MSS segment reported revenue of $866.8 million and operating income of $34.2 million. This represents an increase of 6% over revenue of $818.6 million for the same period last year and an increase of 20% over operating income of $28.6 million for the same period last year.

MSS revenue, net of other direct costs, increased 52% for the fourth quarter of fiscal year 2008, to $45.0 million. For the full fiscal year 2008, MSS revenue, net of other direct costs, increased 42% to $155.8 million.

Balance Sheet

As of September 30, 2008, AECOM had $190.0 million of cash, $81.4 million in auction rate securities classified as marketable securities, $391.0 million of debt and $650.0 million in committed bank facilities with over $300 million in unused capacity. In November 2008, AECOM sold its $81.4 million of auction rate securities at par value.

Outlook

AECOM announced total backlog of $8.6 billion at September 30, 2008, a 43% increase year over year and a 21% increase over the backlog balance at June 30, 2008.

"We continue to generate strong cash flow from operations and we are in a solid cash position," said Michael S. Burke, AECOM executive vice president, chief corporate officer and chief financial officer. "We have in excess of $300 million of available borrowing capacity under our credit facilities and are well positioned to opportunistically invest in organic initiatives as well as strategic acquisitions."

Based on the continued strong outlook for the business, AECOM expects diluted earnings per share results for fiscal year 2009 to be in the range of $1.60 to $1.70.

AECOM is hosting a conference call today at 11 a.m. EST, during which management will make a brief presentation focusing on the company's results, strategies and operating trends. Interested parties can listen to the conference call and view accompanying slides via webcast on the Internet at www.aecom.com. The webcast will be available for replay following the call.

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 and energy. With 43,000 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 enhance and sustain the world's built, natural, and social environments. AECOM serves clients in more than 100 countries and had revenue of $5.2 billion during its fiscal year 2008. More information on AECOM and its services can be found at www.aecom.com.

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
              Condensed Consolidated Statement of Income
                (in thousands, except per share data)

                            Three Months Ended    Twelve Months Ended
                           --------------------- ---------------------
                           September  September  September  September
                            30, 2008   30, 2007   30, 2008   30, 2007
                           ---------- ---------- ---------- ----------

Revenue                    $1,628,908 $1,114,356 $5,194,482 $4,237,270
  Other direct costs          619,821    445,394  1,905,773  1,832,001
                           ---------- ---------- ---------- ----------
  Revenue, net of other
   direct costs             1,009,087    668,962  3,288,709  2,405,269
  Cost of revenue, net of
   other direct costs         922,310    613,762  3,001,513  2,207,316
                           ---------- ---------- ---------- ----------
Gross profit                   86,777     55,200    287,196    197,953

Equity in earnings of
 joint ventures                10,029      4,200     22,192     11,828
General and administrative
 expenses                      25,672     17,095     70,581     53,842
                           ---------- ---------- ---------- ----------
    Income from operations     71,134     42,305    238,807    155,939

Minority interest in share
 of earnings                    2,651      7,346     13,590     16,404
Gain on sale of equity
 investment                         -          -          -     11,286
Non-operating income          (2,566)          -    (3,438)          -
Interest income (expense)
 - net                        (3,375)      6,294        736    (3,321)
                           ---------- ---------- ---------- ----------
    Income before income
     tax expense               62,542     41,253    222,515    147,500
Income tax expense             20,124     11,860     76,321     47,203

Income from continuing
 operations                    42,418     29,393    146,194    100,297

Discontinued operations,
 net of tax                     1,032          -      1,032          -

                           ---------- ---------- ---------- ----------
Net income                 $   43,450 $   29,393 $  147,226 $  100,297
                           ========== ========== ========== ==========

Net income allocation:
    Preferred stock
     dividend              $       37 $       65 $      168 $      249
    Net income available
     for common
     stockholders              43,413     29,328    147,058    100,048
                           ---------- ---------- ---------- ----------
    Net income             $   43,450 $   29,393 $  147,226 $  100,297
                           ========== ========== ========== ==========

Net income per share:
    Basic
        Continuing
         operations        $     0.41 $     0.30 $     1.44 $     1.37
        Discontinued
         operations              0.01          -       0.01          -
                           ---------- ---------- ---------- ----------
                           $     0.42 $     0.30 $     1.45 $     1.37
                           ========== ========== ========== ==========

    Diluted
        Continuing
         operations        $     0.40 $     0.29 $     1.40 $     1.15
        Discontinued
         operations              0.01          -       0.01          -
                           ---------- ---------- ---------- ----------
                           $     0.41 $     0.29 $     1.41 $     1.15
                           ========== ========== ========== ==========

Weighted average shares
 outstanding:
    Basic                     103,583     98,362    101,456     73,091
    Diluted                   105,817    101,952    104,215     87,537
                     AECOM Technology Corporation
               Balance Sheet and Cash Flow Information
                            (in thousands)

                                                 ---------- ----------
                                                 September  September
                                                  30, 2008   30, 2007
                                                 ---------- ----------
Balance Sheet Information:
   Cash and cash equivalents                     $  190,022 $  216,911
   Working capital                                  632,092    597,655
   Working capital, net of cash and cash
    equivalents                                     442,070    380,744
   Total debt                                       391,009     47,950
   Total stockholders' equity                     1,422,993  1,278,485


                                                  Twelve Months Ended
                                                 ---------------------
                                                 September  September
                                                  30, 2008   30, 2007
                                                 ---------- ----------
Cash Flow Information:
   Net cash provided by continuing operations    $  158,100 $  137,463
                     AECOM TECHNOLOGY CORPORATION
                         Reportable Segments
                           ($ in thousands)

                          Professional Management
                           Technical    Support
                            Services    Services  Corporate   Total
                          ------------ ---------- --------- ----------
Three Months Ended
 September 2008
Revenue                     $1,382,177   $246,731 $       - $1,628,908
Other direct costs             418,116    201,705         -    619,821
                          ------------ ---------- --------- ----------
Revenue, net of other
 direct costs                  964,061     45,026         -  1,009,087
Cost of revenue, net of
 other direct costs            880,042     42,268         -    922,310
                          ------------ ---------- --------- ----------
Gross profit                    84,019      2,758         -     86,777
Gross profit as a % of
 revenue                          6.1%       1.1%         -       5.3%
Gross profit as a % of
 revenue, net of other
 direct costs                     8.7%       6.1%         -       8.6%
Equity in earnings of
 joint ventures                  6,650      3,379         -     10,029
General and
 administrative expenses             -          -    25,672     25,672
Segment income from
 operations                     90,669      6,137  (25,672)     71,134

Three Months Ended
 September 2007
Revenue                     $  917,247   $197,109 $       - $1,114,356
Other direct costs             277,987    167,407         -    445,394
                          ------------ ---------- --------- ----------
Revenue, net of other
 direct costs                  639,260     29,702         -    668,962
Cost of revenue, net of
 other direct costs            588,072     25,690         -    613,762
                          ------------ ---------- --------- ----------
Gross profit                    51,188      4,012         -     55,200
Gross profit as a % of
 revenue                          5.6%       2.0%         -       5.0%
Gross profit as a % of
 revenue, net of other
 direct costs                     8.0%      13.5%         -       8.3%
Equity in earnings of
 joint ventures                  1,750      2,450         -      4,200
General and
 administrative expenses             -          -    17,095     17,095
Segment income from
 operations                     52,938      6,462  (17,095)     42,305

Twelve Months Ended
 September 2008
Revenue                     $4,327,671   $866,811 $       - $5,194,482
Other direct costs           1,194,739    711,034         -  1,905,773
                          ------------ ---------- --------- ----------
Revenue, net of other
 direct costs                3,132,932    155,777         -  3,288,709
Cost of revenue, net of
 other direct costs          2,871,020    130,493         -  3,001,513
                          ------------ ---------- --------- ----------
Gross profit                   261,912     25,284         -    287,196
Gross profit as a % of
 revenue                          6.1%       2.9%         -       5.5%
Gross profit as a % of
 revenue, net of other
 direct costs                     8.4%      16.2%         -       8.7%
Equity in earnings of
 joint ventures                 13,280      8,912         -     22,192
General and
 administrative expenses             -          -    70,581     70,581
Segment income from
 operations                    275,192     34,196  (70,581)    238,807

Segment assets               3,284,989    216,537    90,164  3,591,690

Twelve Months Ended
 September 2007
Revenue                     $3,418,683   $818,587 $       - $4,237,270
Other direct costs           1,122,967    709,034         -  1,832,001
                          ------------ ---------- --------- ----------
Revenue, net of other
 direct costs                2,295,716    109,553         -  2,405,269
Cost of revenue, net of
 other direct costs          2,117,271     90,045         -  2,207,316
                          ------------ ---------- --------- ----------
Gross profit                   178,445     19,508         -    197,953
Gross profit as a % of
 revenue                          5.2%       2.4%         -       4.7%
Gross profit as a % of
 revenue, net of other
 direct costs                     7.8%      17.8%         -       8.2%
Equity in earnings of
 joint ventures                  2,710      9,118         -     11,828
General and
 administrative expenses             -          -    53,842     53,842
Segment income from
 operations                    181,155     28,626  (53,842)    155,939

Segment assets               1,909,098    170,043   412,680  2,491,821

NR 08-1102

CONTACT: AECOM Technology Corporation
Paul Gennaro, 212-973-3167
SVP & Chief Communications Officer
paul.gennaro@aecom.com

SOURCE: AECOM Technology Corporation