|AECOM reports fourth-quarter, full fiscal year 2010 results|
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."
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.
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.
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.
"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.
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.
SOURCE: AECOM Technology Corporation
AECOM Technology Corporation