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AECOM Reports 29% Growth in Revenue, Backlog of $9.2 Billion for Second Quarter of Fiscal Year 2009
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  • Second-quarter diluted earnings per-share from continuing operations of 40 cents, up 14% from the same period last year.
  • Net income from continuing operations for second quarter increased 20% year over year to $43 million.
  • Operating income for second quarter increased 20% year over year to $71 million.
  • Revenue, net of other direct costs, for the second quarter increased 29% year over year to $1.0 billion.
  • Revenue for second quarter increased 29% year over year to $1.5 billion.
  • Backlog at March 31, 2009, increased 30% year over year to $9.2 billion.

LOS ANGELES--(BUSINESS WIRE)--May. 7, 2009-- 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 2009, which ended March 31, 2009.

AECOM reported net income from continuing operations of $43 million for the second quarter, or diluted earnings per share (EPS) of 40 cents. These results represent an increase of 20% over net income from continuing operations of $36 million – and an increase of 14% over diluted EPS of 35 cents – for the same period last year. The net income amount does not include $0.4 million of earnings from discontinued operations associated with non-strategic assets acquired as part of the 2008 Earth Tech transaction, which AECOM intends to divest. Operating income for the second quarter increased 20% year over year to $71 million. For the first six months of fiscal year 2009, AECOM reported net income from continuing operations of $84 million and operating income of $140 million, an increase of 28% and 36%, respectively, compared to the same period last year.

Second-quarter revenue increased to $1.5 billion, 29% higher than the second quarter of fiscal year 2008. 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 29% compared to the same period last year, to $1.0 billion. For the first six months of fiscal 2009, AECOM reported revenue of $3.0 billion and revenue, net of other direct costs of $1.9 billion, an increase of 32% and 30%, respectively, compared to the same period last year.

“The strength of AECOM’s diversified global business model is reflected in our solid second-quarter results,” said John M. Dionisio, AECOM president and chief executive officer. “Overall, we saw continued strength across our end markets. Our ability to expand client relationships and collaborate across our operations around the globe contributed to the continued growth of our business.

“During the second quarter, we won a number of significant projects,” said Dionisio. “Mega projects such as Crossrail in the United Kingdom, the largest civil infrastructure project in Europe; the New Central Wan Chai Bypass in Hong Kong; and two California High-Speed Rail projects highlighted a quarter that also included key wins in India, the Middle East and Bangladesh.”

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 2009, the PTS segment reported revenue of $1.2 billion and operating income of $79 million, compared to revenue of $1.0 billion and operating income of $61 million for the same period during fiscal year 2008. This represents a 30% increase in revenue and a 31% increase in operating income year over year. PTS revenue, net of other direct costs, increased 27% year over year to $899 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 2009, the MSS segment reported revenue of $258 million and operating income of $15 million, compared to revenue of $209 million and operating income of $14 million for the same period during fiscal year 2008. This represents a 24% increase in revenue and an 8% increase in operating income year over year. MSS revenue, net of other direct costs, increased 67% year over year to $67 million.

Backlog

AECOM announced backlog totaling $9.2 billion at March 31, 2009, a 30% increase year over year.

“During the second quarter, we continued to effectively execute our growth strategy across our end markets and geographies,” said Michael S. Burke, AECOM executive vice president and chief financial officer. “Continued positive trends in margin improvement, where we saw a 24-basis-point improvement, and backlog growth, where we achieved a $2.1 billion increase in our year-over-year backlog, point to AECOM’s continued solid momentum in our global end markets.”

Outlook

Based on its results through the second quarter of the fiscal year, as well as its backlog, AECOM has reaffirmed its EPS outlook for fiscal year 2009 of $1.60 to $1.70. “Looking ahead, we believe that AECOM will continue to see growth and is well positioned to benefit from continued spending on infrastructure projects around the globe,” said Burke. “As such, we feel confident that our results will be in the upper half of the range.”

AECOM is hosting a conference call today at 11 a.m. EDT, 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 at 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 (877) 941-2332 or (480) 629-9722.

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. A Fortune 500 company, AECOM serves clients in more than 100 countries and had revenue of $5.9 billion during the 12-month period ended March 31, 2009. 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 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
Reportable Segments
(in thousands)
           

Professional
Technical
Services

Management
Support
Services

Corporate Total
Three Months Ended March 31, 2009
Revenue $ 1,240,355 $ 258,403 $ - $ 1,498,758
Other direct costs   341,299     191,597     -     532,896  
Revenue, net of other direct costs 899,056 66,806 - 965,862
Cost of revenue, net of other direct costs   823,067     53,161     -     876,228  
Gross profit 75,989 13,645 - 89,634
Gross profit as a % of revenue

6.1%

 

5.3%

 

-

6.0%

 

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

8.5%

 

20.4%

 

-

9.3%

 

Equity in earnings of joint ventures 3,408 1,495 - 4,903
General and administrative expenses - - 23,930 23,930
Operating income 79,397 15,140 (23,930 ) 70,607
 
Three Months Ended March 31, 2008
Revenue $ 955,067 $ 209,054 $ - $ 1,164,121
Other direct costs   244,436     168,933     -     413,369  
Revenue, net of other direct costs 710,631 40,121 - 750,752
Cost of revenue, net of other direct costs   652,554     27,465     -     680,019  
Gross profit 58,077 12,656 - 70,733
Gross profit as a % of revenue

6.1%

 

6.1%

 

-

6.1%

 

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

8.2%

 

31.5%

 

-

9.4%

 

Equity in earnings of joint ventures 2,676 1,332 - 4,008
General and administrative expenses - - 15,782 15,782
Operating income 60,753 13,988 (15,782 ) 58,959
 
Six Months Ended March 31, 2009
Revenue $ 2,471,681 $ 481,205 $ - $ 2,952,886
Other direct costs   726,335     371,199     -     1,097,534  
Revenue, net of other direct costs 1,745,346 110,006 - 1,855,352
Cost of revenue, net of other direct costs   1,595,430     89,081     -     1,684,511  
Gross profit 149,916 20,925 - 170,841
Gross profit as a % of revenue

6.1%

 

4.3%

 

-

5.8%

 

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

8.6%

 

19.0%

 

-

9.2%

 

Equity in earnings of joint ventures 6,385 4,254 - 10,639
General and administrative expenses - - 41,176 41,176
Operating income 156,301 25,179 (41,176 ) 140,304
 
Segment assets 3,270,739 210,076 78,684 3,559,499
Contracted backlog 4,636,573 550,415 - 5,186,988
Awarded backlog 3,856,568 177,070 - 4,033,638
 
Six Months Ended March 31, 2008
Revenue $ 1,848,508 $ 395,863 $ - $ 2,244,371
Other direct costs   489,352     328,681     -     818,033  
Revenue, net of other direct costs 1,359,156 67,182 - 1,426,338
Cost of revenue, net of other direct costs   1,248,716     52,912     -     1,301,628  
Gross profit 110,440 14,270 - 124,710
Gross profit as a % of revenue

6.0%

 

3.6%

 

-

5.6%

 

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

8.1%

 

21.2%

 

-

8.7%

 

Equity in earnings of joint ventures 3,708 3,142 - 6,850
General and administrative expenses - - 28,069 28,069
Operating income 114,148 17,412 (28,069 ) 103,491
 
Contracted backlog 3,250,817 587,940 - 3,838,757
Awarded backlog 2,650,969 587,599 - 3,238,568
 
AECOM Technology Corporation
Condensed Consolidated Statement of Income
(in thousands, except per share data)
 
      Three Months Ended     Six Months Ended
March 31, 2009     March 31, 2008 March 31, 2009     March 31, 2008
 
Revenue $ 1,498,758 $ 1,164,121 $ 2,952,886 $ 2,244,371
Other direct costs   532,896     413,369     1,097,534     818,033  
Revenue, net of other direct costs 965,862 750,752 1,855,352 1,426,338
Cost of revenue, net of other direct costs   876,228     680,019     1,684,511     1,301,628  
Gross profit 89,634 70,733 170,841 124,710
 
Equity in earnings of joint ventures 4,903 4,008 10,639 6,850
General and administrative expenses   23,930     15,782     41,176     28,069  
Income from operations 70,607 58,959 140,304 103,491
 
Minority interest in share of earnings 5,732 4,798 9,178 6,077
Other income (expense) (1,419 ) (813 ) (6,207 ) (1,628 )
Interest income (expense), net   (2,019 )   2,061     (5,617 )   4,309  
Income from continuing operations
before income tax expense 		61,437 55,409 119,302 100,095
 
Income tax expense 18,431 19,580 35,791 34,773
 
Income from continuing operations 43,006 35,829 83,511 65,322
 
Discontinued operations, net of tax 392 - 792 -
       
Net income $ 43,398   $ 35,829   $ 84,303   $ 65,322  
 
Net income allocation:
Preferred stock dividend $ 35 $ 39 $ 71 $ 95
Net income available for common stockholders   43,363     35,790     84,232     65,227  
Net income $ 43,398   $ 35,829   $ 84,303   $ 65,322  
 
Net income per share:
Basic
Continuing operations $ 0.40 $ 0.36 $ 0.79 $ 0.65
Discontinued operations   0.01     -     0.01     -  
$ 0.41   $ 0.36   $ 0.80   $ 0.65  
 
Diluted
Continuing operations $ 0.40 $ 0.35 $ 0.78 $ 0.63
Discontinued operations   -     -     0.01     -  
$ 0.40   $ 0.35   $ 0.79   $ 0.63  
 
Weighted average shares outstanding:
Basic 106,465 100,571 105,497 100,108
Diluted 108,148 103,454 107,384 103,240
 
Balance Sheet and Cash Flow Information
(in thousands)
               
March 31, 2009 September 30, 2008
Balance Sheet Information:
Cash and cash equivalents $ 241,201 $ 194,522
Working capital 689,202 631,171
Working capital, net of cash and cash equivalents 448,001 436,649
Total debt 290,423 398,009
Total assets 3,559,499 3,596,190
Total stockholders’ equity 1,551,465 1,422,993
 
 
Six Months Ended
March 31, 2009 March 31, 2008
Cash Flow Information:
Net cash provided by operating activities $ 11,776 $ 3,267

NR 09-0502

Source: AECOM Technology Corporation

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