News Release

AECOM reports 51 cents EPS and increases outlook for the year
  • Diluted earnings per share for the second quarter increased 31% year over year to 51 cents.
  • Net income from continuing operations for second quarter increased 39% year over year to $59 million.
  • Operating income for the second quarter increased 21% year over year to $83 million.
  • Revenue, net of other direct costs, for the second quarter increased 9% year over year to $1.1 billion.
  • Revenue for second quarter increased 7% year over year to $1.6 billion.
  • Backlog at March 31, 2010, increased 7% year over year to $9.9 billion.
  • Diluted earnings per share range outlook increased to $1.97 to $2.05 for full fiscal year 2010.

LOS ANGELES, May 06, 2010 (BUSINESS WIRE) --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 second quarter of fiscal year 2010, which ended March 31, 2010.

AECOM reported net income of $59 million for the second quarter, or diluted earnings per share (EPS) of 51 cents. These results represent an increase of 39% over net income of $42 million - and an increase of 31% over diluted EPS of 39 cents - for the same period last year. Operating income for the second quarter increased to $83 million, 21% higher than the same period last year. For the first six months of fiscal year 2010, AECOM reported net income of $104 million and operating income of $149 million, an increase of 26% and 8%, respectively, compared to the same period last year.

Second-quarter revenue increased to $1.6 billion, 7% higher than the second quarter of fiscal year 2009. AECOM's gross revenue includes a significant amount of pass-through costs and, therefore, the company believes revenue, net of other direct costs, which is a non-GAAP measure, also provides a valuable perspective on its business results.

AECOM's second-quarter revenue, net of other direct costs, increased to $1.1 billion, 9% higher than the same period last year. For the first six months of fiscal 2010, AECOM reported revenue of $3.1 billion and revenue, net of other direct costs of $2.0 billion, an increase of 4% and 8%, respectively, compared to the same period last year.

"We continued to win new work across our diversified end markets and geographies in the second quarter of fiscal year 2010," said John M. Dionisio, AECOM president and chief executive officer. "Our global transportation and U.S. federal government markets - as well as our business in global markets such as Hong Kong, China, Australia and Eastern Europe - performed particularly well. Our pipeline of new opportunities is solid and we continue to anticipate accelerated growth in the second half of the year."

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 second quarter of fiscal year 2010, the PTS segment reported revenue of $1.3 billion and operating income of $97 million, compared to revenue of $1.2 billion and operating income of $78 million for the same period during fiscal year 2009. This represents a 6% increase in revenue and a 25% increase in operating income year over year. PTS revenue, net of other direct costs, increased 7% year over year to $966 million.

Management Support Services

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

For the second quarter of fiscal year 2010, the MSS segment reported revenue of $284 million and operating income of $14 million, compared to revenue of $258 million and operating income of $15 million for the same period during fiscal year 2009. This represents a 10% increase in revenue and an 8% decrease in operating income year over year. MSS revenue, net of other direct costs, increased 29% year over year to $86 million.

Backlog

AECOM announced backlog totaling $9.9 billion at March 31, 2010, a 7% increase year over year.

Balance Sheet

AECOM has a strong balance sheet to fund growth. At March 31, 2010, the company had $207 million of total cash and cash equivalents, $201 million of debt and $600 million in committed bank facilities with $439 million in unused capacity.

Outlook

"Our continued strong execution in the second quarter of fiscal year 2010 resulted in a 39% year-over-year increase in net income," said Michael S. Burke, AECOM executive vice president and chief financial officer. "Based on our results through the second quarter of the fiscal year, and our outlook for accelerated growth in the second half of the year, we are raising our EPS guidance range for fiscal year 2010 to $1.97 to $2.05 - which at the midpoint of the range, represents annual growth of 18%."

AECOM is hosting a conference call on May 6, 2010, at 11 a.m. EDT, during which management will make a brief presentation on the company's results, strategies and operating trends. Interested parties can listen to the conference call and view accompanying slides via webcast at http://www.aecom.com. The webcast will be available for replay following the call. Those wishing to dial in to the call via telephone can do so at (866) 831-6224 or (617) 213-8853. The participant passcode will be 12420359.

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 enhance and sustain the world's built, natural, and social environments. A Fortune 500 company, AECOM serves clients in more than 100 countries and had revenue of $6.3 billion during the 12-month period ended March 31, 2010. More information on AECOM and its services can be found at http://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 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.

NR 10-0501

AECOM Technology Corporation
Condensed Consolidated Statement of Income
(in thousands, except per share data)
Three Months Ended Six Months Ended
March 31, 2010 March 31, 2009 March 31, 2010 March 31, 2009
Revenue $ 1,601,166 $ 1,498,058 $ 3,081,950 $ 2,950,686
Other direct costs 549,302 531,597 1,067,760 1,093,635
Revenue, net of other direct costs (non-GAAP) 1,051,864 966,461 2,014,190 1,857,051
Cost of revenue, net of other direct costs 943,969 878,528 1,823,318 1,688,511
Gross profit 107,895 87,933 190,872 168,540
Equity in earnings of joint ventures 3,451 4,904 7,829 10,640
General and administrative expenses 27,898 23,931 49,763 41,177
Income from operations 83,448 68,906 148,938 138,003
Other income (expense) 1,829 (1,418 ) 3,533 (6,206 )
Interest expense, net (2,385 ) (1,919 ) (3,360 ) (5,517 )

Income from continuing operations
before income tax expense

82,892 65,569 149,111 126,280
Income tax expense 21,048 18,431 37,513 35,891
Income from continuing operations 61,844 47,138 111,598 90,389
Discontinued operations, net of tax (190 ) 1,192 (77 ) 1,692
Net income 61,654 48,330 111,521 92,081

Noncontrolling interest in income of consolidated
subsidiaries, net of tax

(3,165 ) (4,932 ) (7,250 ) (7,778 )
Net income attributable to AECOM $ 58,489 $ 43,398 $ 104,271 $ 84,303
Net income allocation:
Preferred stock dividend $ 35 $ 35 $ 70 $ 71
Net income available for common stockholders 58,454 43,363 104,201 84,232
Net income attributable to AECOM $ 58,489 $ 43,398 $ 104,271 $ 84,303
Net income attributable to AECOM per share:
Basic
Continuing operations $ 0.51 $ 0.40 $ 0.92 $ 0.78
Discontinued operations - 0.01 - 0.02
$ 0.51 $ 0.41 $ 0.92 $ 0.80
Diluted
Continuing operations $ 0.51 $ 0.39 $ 0.91 $ 0.77
Discontinued operations - 0.01 - 0.02
$ 0.51 $ 0.40 $ 0.91 $ 0.79
Weighted average shares outstanding:
Basic 113,801 106,465 113,477 105,497
Diluted 115,044 108,148 114,771 107,384
AECOM Technology Corporation
Balance Sheet and Cash Flow Information
(in thousands)
March 31, 2010 September 30, 2009
Balance Sheet Information:
Cash and cash equivalents $ 206,549 $ 290,777
Working capital 786,306 657,796
Working capital, net of cash and cash equivalents 579,757 367,019
Total debt 200,723 171,209
Total assets 3,939,343 3,789,881
Total stockholders' equity 1,911,240 1,729,718
Six Months Ended
March 31, 2010 March 31, 2009
Cash Flow Information:
Net cash (used in) provided by operating activities $ (86,481 ) $ 14,694
AECOM TECHNOLOGY CORPORATION
Reportable Segments
(in thousands)

Professional

Technical

Services

Management

Support

Services

Corporate Total
Three Months Ended March 31, 2010
Revenue $ 1,316,948 $ 284,218 $ - $ 1,601,166
Other direct costs 350,951 198,351 - 549,302
Revenue, net of other direct costs (non-GAAP) 965,997 85,867 - 1,051,864
Cost of revenue, net of other direct costs 870,529 73,440 - 943,969
Gross profit 95,468 12,427 - 107,895
Equity in earnings of joint ventures 2,018 1,433 - 3,451
General and administrative expenses - - 27,898 27,898
Income from operations $ 97,486 $ 13,860 $ (27,898 ) $ 83,448
Gross profit as a % of revenue 7.2 % 4.4 % - 6.7 %
Gross profit as a % of revenue, net of other direct costs (non-GAAP) 9.9 % 14.5 % - 10.3 %
Three Months Ended March 31, 2009
Revenue $ 1,239,655 $ 258,403 $ - $ 1,498,058
Other direct costs 340,000 191,597 - 531,597
Revenue, net of other direct costs (non-GAAP) 899,655 66,806 - 966,461
Cost of revenue, net of other direct costs 825,367 53,161 - 878,528
Gross profit 74,288 13,645 - 87,933
Equity in earnings of joint ventures 3,409 1,495 - 4,904
General and administrative expenses - - 23,931 23,931
Income from operations $ 77,697 $ 15,140 $ (23,931 ) $ 68,906
Gross profit as a % of revenue 6.0 % 5.3 % - 5.9 %
Gross profit as a % of revenue, net of other direct costs (non-GAAP) 8.3 % 20.4 % - 9.1 %

AECOM TECHNOLOGY CORPORATION
Reportable Segments
(in thousands)

Professional

Technical

Services

Management

Support

Services

Corporate Total
Six Months Ended March 31, 2010
Revenue $ 2,521,387 $ 560,563 $ - $ 3,081,950
Other direct costs 671,549 396,211 - 1,067,760
Revenue, net of other direct costs (non-GAAP) 1,849,838 164,352 - 2,014,190
Cost of revenue, net of other direct costs 1,682,732 140,586 - 1,823,318
Gross profit 167,106 23,766 - 190,872
Equity in earnings of joint ventures 4,290 3,539 - 7,829
General and administrative expenses - - 49,763 49,763
Income from operations $ 171,396 $ 27,305 $ (49,763 ) $ 148,938
Gross profit as a % of revenue 6.6 % 4.2 % - 6.2 %
Gross profit as a % of revenue, net of other direct costs (non-GAAP) 9.0 % 14.5 % - 9.5 %
Contracted backlog $ 5,053,910 $ 472,093 - $ 5,526,003
Awarded backlog $ 3,387,808 $ 938,247 - $ 4,326,055
Six Months Ended March 31, 2009
Revenue $ 2,469,481 $ 481,205 $ - $ 2,950,686
Other direct costs 722,436 371,199 - 1,093,635
Revenue, net of other direct costs (non-GAAP) 1,747,045 110,006 - 1,857,051
Cost of revenue, net of other direct costs 1,599,430 89,081 - 1,688,511
Gross profit 147,615 20,925 - 168,540
Equity in earnings of joint ventures 6,386 4,254 - 10,640
General and administrative expenses - - 41,177 41,177
Income from operations $ 154,001 $ 25,179 $ (41,177 ) $ 138,003
Gross profit as a % of revenue 6.0 % 4.3 % - 5.7 %
Gross profit as a % of revenue, net of other direct costs (non-GAAP) 8.4 % 19.0 % - 9.1 %
Contracted backlog $ 4,636,573 $ 550,415 - $ 5,186,988
Awarded backlog $ 3,856,568 $ 177,070 - $ 4,033,638

SOURCE: AECOM Technology Corporation

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