News Release

AECOM reports fourth-quarter, full fiscal year 2010 results
Q4 EPS increased 21% year over year and backlog grew 55% to $14.7 billion
  • Fourth-quarter diluted earnings per share increased 21% year over year to 58 cents.
  • Net income from continuing operations for the fourth quarter increased 25% year over year to $68 million.
  • Revenue for the fourth quarter increased 12% year over year to $1.8 billion.
  • Revenue, net of other direct costs, for the fourth quarter increased 14% year over year to $1.1 billion.
  • Total backlog at Sept. 30 increased 55% year over year to $14.7 billion.
  • Diluted earnings-per-share outlook of $2.20 to $2.30 provided for full fiscal year 2011.

LOS ANGELES, Nov 11, 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 fourth quarter and full fiscal year ended Sept. 30, 2010.

AECOM reported net income from continuing operations of $68 million for the fourth quarter and diluted earnings per share (EPS) from continuing operations of 58 cents for the fourth quarter. This represents an increase of 25% over net income of $54 million for the same period last year and an increase of 21% over diluted earnings per share of 48 cents for the same period last year.

Fourth-quarter revenue was $1.8 billion, a 12% increase from the fourth quarter of fiscal year 2009. 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, was $1.1 billion, representing a 14% increase over the same period last year. Organic revenue, net of other direct costs, for the fourth quarter increased 3.8% year over year.

For the full fiscal year 2010, AECOM reported net income from continuing operations of $237 million and diluted EPS from continuing operations of $2.05. This represents an increase of 27% over net income of $187 million for the same period last year and an increase of 21% over diluted EPS of $1.70 for the same period last year.

For fiscal year 2010, the company's revenue, net of other direct costs, increased 10% to $4.2 billion, while gross revenue for fiscal year 2010 was $6.5 billion - 7% higher than fiscal year 2009.

"2010 was a year of many noteworthy achievements for AECOM," said John M. Dionisio, AECOM president and chief executive officer. "We furthered our strategy of diversification with the completion of five strategic acquisitions, and we continued to win work on the most prestigious projects around the world.

"During the fourth quarter, we won more than $2 billion in new work across our geographies and end markets," Dionisio said. "We are poised for continued forward momentum in 2011 and beyond with our balanced business model, global platform of integrated services and focus on high growth end markets and geographies."

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 2010, the PTS segment reported revenue of $1.5 billion and operating income of $120 million. This represents an increase of 15% from revenue of $1.3 billion for the same period last year and an increase of 32% over operating income of $91 million for the same period last year. For the full year, the PTS segment reported revenue of $5.4 billion and operating income of $399 million. This represents an increase of 7% over revenue of $5.1 billion for the same period last year and an increase of 23% over operating income of $325 million for the same period last year.

PTS revenue, net of other direct costs, increased 11% for the fourth quarter of fiscal year 2010, to $1.0 billion. For the full fiscal year 2010, PTS revenue, net of other direct costs, increased 8% to $3.8 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 2010, the MSS segment reported revenue of $294 million and operating income of $12 million. Revenues were unchanged from the same period last year, while operating income increased 17% from $10 million in the same period last year. For the full year, the MSS segment reported revenue of $1.2 billion and operating income of $52 million. This represents an increase of 9% over revenue of $1.1 billion for the same period last year and an increase of 8% over operating income of $48 million for the same period last year.

MSS revenue, net of other direct costs, increased 50% for the fourth quarter of fiscal year 2010, to $105 million. For the full fiscal year 2010, MSS revenue, net of other direct costs, increased 45% to $366 million.

Balance Sheet

As of Sept. 30, 2010, AECOM had $613 million of total cash and cash equivalents, $931 million of debt and $600 million in committed bank facilities with $542 million in unused capacity. Cash flow from operations decreased by 31% to $159 million for the year ended Sept. 30, 2010.

Backlog

AECOM announced total backlog of $14.7 billion at Sept. 30, 2010, a 55% increase year over year and a 52% increase over the backlog balance at June 30, 2010. Excluding backlog obtained through acquisitions, total backlog increased 4% over the backlog balance at June 30, 2010.

Outlook

"Our solid execution in FY10 resulted in year-over-year earnings growth of 21%," said Michael S. Burke, AECOM executive vice president and chief financial officer. "We closed the year with improving organic growth, increased operating margins, record backlog of $14.7 billion, and a strong balance sheet to fund future growth. We are excited about the opportunities that we see ahead for AECOM as we complete the integration of our recent acquisitions and continue to pursue new opportunities around the globe."

Based on the strength of its diversified business model, AECOM expects diluted earnings per share results for fiscal year 2011 to be in the range of $2.20 to $2.30.

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. Those wishing to dial in to the call via telephone can do so by dialing (866) 804-6924 or (857) 350-1670 and entering the passcode 50717383. Interested parties also can listen to the conference call and view accompanying slides via webcast 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, energy, water and government. With approximately 51,000 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 $6.5 billion during its fiscal year 2010. 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.

NR 10-1105

AECOM Technology Corporation
Condensed Consolidated Statement of Income
(in thousands, except per share data)
Three Months Ended Twelve Months Ended

September 30,
2010

September 30,
2009

September 30,
2010

September 30,
2009

Revenue $ 1,828,658 $ 1,627,490 $ 6,545,791 $ 6,119,465
Other direct costs 699,735 636,207 2,340,014 2,300,496
Revenue, net of other direct costs (non-GAAP) 1,128,923 991,283 4,205,777 3,818,969
Cost of revenue, net of other direct costs 1,004,589 896,137 3,775,506 3,467,766
Gross profit 124,334 95,146 430,271 351,203
Equity in earnings of joint ventures 7,217 5,764 20,987 22,557
General and administrative expenses 32,373 25,646 110,463 86,894
Income from operations 99,178 75,264 340,795 286,866
Other income (expense) 6,970 4,671 10,250 1,713
Interest income (expense), net (5,442 ) (2,557 ) (9,928 ) (10,691 )
Income from continuing operations
before income tax expense
100,706 77,378 341,117 277,888
Income tax expense 31,518 19,924 91,696 77,002
Income from continuing operations 69,188 57,454 249,421 200,886
Discontinued operations, net of tax -- 182 (77 ) 2,992
Net Income 69,188 57,636 249,344 203,878
Non-controlling interest in income

of consolidated subsidiaries, net of tax

(1,414 ) (3,364 ) (12,457 ) (14,182 )
Net income attributable to AECOM $ 67,774 $ 54,272 $ 236,887 $ 189,696
Net income allocation:
Preferred stock dividend $ 22 $ 34 $ 126 $ 139
Net income available for common stockholders 67,752 54,238 236,761 189,557
Net income attributable to AECOM $ 67,774 $ 54,272 $ 236,887 $ 189,696
Net income attributable to AECOM per share:
Basic
Continuing operations $ 0.58 $ 0.49 $ 2.07 $ 1.73
Discontinued operations -- -- -- 0.03
$ 0.58 $ 0.49 $ 2.07 $ 1.76
Diluted
Continuing operations $ 0.58 $ 0.48 $ 2.05 $ 1.70
Discontinued operations -- -- -- 0.03
$ 0.58 $ 0.48 $ 2.05 $ 1.73
Weighted average shares outstanding:
Basic 115,881 111,145 114,344 108,003
Diluted 116,690 112,542 115,463 109,706
AECOM Technology Corporation
Balance Sheet and Cash Flow Information
(in thousands)
September 30, 2010 September 30, 2009
Balance Sheet Information:
Cash and cash equivalents $ 612,857 $ 290,777
Working capital 1,094,239 657,796
Working capital, net of cash and cash equivalents 481,382 367,019
Total debt 931,127 171,209
Total assets 5,242,909 3,789,881
Total stockholders' equity 2,090,012 1,729,718
Twelve Months Ended
September 30, 2010 September 30, 2009
Cash Flow Information:
Net cash provided by operating activities $ 158,635 $ 228,640
AECOM TECHNOLOGY CORPORATION
Reportable Segments
(in thousands)

Professional
Technical
Services

Management
Support
Services

Corporate Total
Three Months Ended September 30, 2010
Revenue $ 1,534,539 $ 294,119 $ -- $ 1,828,658
Other direct costs 510,188 189,547 -- 699,735
Revenue, net of other direct costs (non-GAAP) 1,024,351 104,572 -- 1,128,923
Cost of revenue, net of other direct costs 907,567 97,022 -- 1,004,589
Gross profit 116,784 7,550 -- 124,334
Equity in earnings of joint ventures 2,957 4,260 -- 7,217
General and administrative expenses -- -- 32,373 32,373
Income from operations $ 119,741 $ 11,810 $ (32,373 ) $ 99,178
Gross profit as a % of revenue 7.6 % 2.6 % -- 6.8 %

Gross profit as a % of revenue, net of other direct costs

(non-GAAP)

11.4 % 7.2 % -- 11.0 %
Three Months Ended September 30, 2009
Revenue $ 1,333,168 $ 294,322 $ -- $ 1,627,490
Other direct costs 411,747 224,460 -- 636,207
Revenue, net of other direct costs (non-GAAP) 921,421 69,862 -- 991,283
Cost of revenue, net of other direct costs 833,273 62,864 -- 896,137
Gross profit 88,148 6,998 -- 95,146
Equity in earnings of joint ventures 2,682 3,082 -- 5,764
General and administrative expenses -- -- 25,646 25,646
Income from operations $ 90,830 $ 10,080 $ (25,646 ) $ 75,264
Gross profit as a % of revenue 6.6 % 2.4 % -- 5.8 %

Gross profit as a % of revenue, net of other direct costs

(non-GAAP)

9.6 % 10.0 % -- 9.6 %
AECOM TECHNOLOGY CORPORATION
Reportable Segments
(in thousands)
Professional

Technical

Services

Management

Support

Services

Corporate Total
Twelve Months Ended September 30, 2010
Revenue $ 5,393,729 $ 1,152,062 $ -- $ 6,545,791
Other direct costs 1,554,420 785,594 -- 2,340,014
Revenue, net of other direct costs (non-GAAP) 3,839,309 366,468 -- 4,205,777
Cost of revenue, net of other direct costs 3,449,486 326,020 -- 3,775,506
Gross profit 389,823 40,448 -- 430,271
Equity in earnings of joint ventures 9,484 11,503 -- 20,987
General and administrative expenses -- -- 110,463 110,463
Income from operations $ 399,307 $ 51,951 $ (110,463 ) $ 340,795
Gross profit as a % of revenue 7.2 % 3.5 % -- 6.6 %

Gross profit as a % of revenue, net of other direct costs

(non-GAAP)

10.2 % 11.0 % -- 10.2 %
Segment assets 4,479,413 734,824 28,672 5,242,909
Contracted backlog $ 6,130,587 $ 670,999 $ -- $ 6,801,586
Awarded backlog 6,349,047 1,569,319 -- 7,918,366
Total Backlog $ 12,479,634 $ 2,240,318 $ -- $ 14,719,952
Twelve Months Ended September 30, 2009
Revenue $ 5,057,688 $ 1,061,777 $ -- $ 6,119,465
Other direct costs 1,492,207 808,289 -- 2,300,496
Revenue, net of other direct costs (non-GAAP) 3,565,481 253,488 -- 3,818,969
Cost of revenue, net of other direct costs 3,252,533 215,233 -- 3,467,766
Gross profit 312,948 38,255 -- 351,203
Equity in earnings of joint ventures 12,465 10,092 -- 22,557
General and administrative expenses -- -- 86,894 86,894
Income from operations $ 325,413 $ 48,347 $ (86,894 ) $ 286,866
Gross profit as a % of revenue 6.2 % 3.6 % -- 5.7 %

Gross profit as a % of revenue, net of other direct costs

(non-GAAP)

8.8 % 15.1 % -- 9.2 %
Segment assets 3,537,342 266,328 (13,789 ) 3,789,881
Contracted backlog $ 4,896,699 $ 458,920 $ -- $ 5,355,619
Awarded backlog 3,748,001 380,789 -- 4,128,790
Total Backlog $ 8,644,700 $ 839,709 $ -- $ 9,484,409

SOURCE: AECOM Technology Corporation

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