News Release
- Extended track record of delivering on all financial targets
- Fourth quarter organic NSR growth in the design business reached the highest level in more than a decade
- Design backlog increased by 8% on a constant-currency basis driven by record full year wins; the pipeline of opportunities remains at an all-time high
- Expect organic NSR growth to further accelerate in fiscal 2023 with continued margin expansion and strong earnings growth
- Reiterated long-term fiscal 2024 financial targets driven by accelerating growth and operational outperformance; increased fiscal 2024 return on invested capital (ROIC) target
|
|
Fourth Quarter Fiscal 2022 |
|
Full Year Fiscal 2022 |
||||||
|
(from Continuing Operations; $ in millions, except EPS) |
As Reported |
Adjusted1 (Non-GAAP) |
As Reported YoY %Change |
Adjusted YoY % Change |
|
As Reported |
Adjusted1 (Non-GAAP) |
As Reported YoY %Change |
Adjusted YoY %Change |
|
Revenue |
|
-- |
2% |
-- |
|
|
-- |
(1%) |
-- |
|
Net Service Revenue (NSR)2 |
-- |
|
-- |
7% |
|
-- |
|
-- |
5% |
|
Operating Income |
|
|
8% |
9% |
|
|
|
3% |
10% |
|
Segment Operating Margin3 (NSR) |
-- |
14.6% |
-- |
(30) bps |
|
-- |
14.2% |
-- |
+40 bps |
|
Net Income |
|
|
21% |
6% |
|
|
|
32% |
17% |
|
EPS (Fully Diluted) |
|
|
26% |
10% |
|
|
|
39% |
23% |
|
EBITDA4 |
-- |
|
-- |
7% |
|
-- |
|
-- |
9% |
|
Operating Cash Flow |
|
-- |
(1%) |
-- |
|
|
-- |
1% |
-- |
|
Free Cash Flow5 |
-- |
|
-- |
(14%) |
|
-- |
|
-- |
0% |
Fiscal 2023 Financial Guidance
-
AECOM expects to deliver another year of record profitability for the Professional Services business with accelerating NSR growth, margin expansion, and strong per share profit growth including:-
Organic NSR2 growth accelerating to approximately 8%; actual NSR growth, which incorporates the impact of the strong
U.S. dollar, is forecasted to increase by approximately 4%. - An adjusted1 operating margin of approximately 14.6%, a 40 basis point increase from the prior year, which includes strong underlying performance, an estimated 10 to 20 basis point impact from foreign exchange rate translation, and ongoing investments in growth.
-
Adjusted1 EBITDA4 of between
$935 million and$975 million , an increase of 10% on a constant-currency basis at the mid-point. -
Adjusted1 EPS of between
$3.55 and$3.75 , an increase of 10% on a constant-currency basis at the mid-point, which does not include expected incremental share repurchases. -
Excluding changes in foreign exchange rates since the start of fiscal 2022, fiscal 2023 adjusted1 EBITDA4 guidance would have exceeded
$1 billion at the mid-point, which is ahead of the performance contemplated in the Company’s fiscal 2024 financial targets driven by accelerating NSR growth and strong profitability.
-
Organic NSR2 growth accelerating to approximately 8%; actual NSR growth, which incorporates the impact of the strong
-
Other assumptions incorporated into guidance:
- An average fully diluted share count of 141 million, which reflects only shares repurchased to-date, though the Company intends to continue repurchasing stock that would provide a benefit to per share earnings.
- An effective tax rate of between 24% and 26%.
-
The Company expects free cash flow5 of between
$475 million and$675 million , reflecting continued strong underlying cash conversion within the Professional Services business.-
The stronger
U.S. dollar equates to an approximately$25 million year-over-year headwind to free cash flow.
-
The stronger
Long-Term Fiscal 2024 Financial Targets, Including Increased ROIC Target
-
AECOM is on track to deliver on its long-term fiscal 2024 financial targets, including adjusted1 EPS of$4 .75+ and a 15% segment adjusted1 operating margin3. - Underpinning this guidance is operational outperformance to date, including accelerating organic NSR growth and continued margin expansion.
- Additionally, the Company is increasing its fiscal 2024 return on invested capital6 target to 17% from 15%, which reflects strong margin performance and working capital management.
- Importantly, the Company is more profitable than ever with an expanded long-term earnings power, reflecting the benefits of its Think and Act Globally strategy and strong business execution.
Fourth Quarter and Full Year Fiscal 2022 Highlights
-
Fourth quarter revenue increased 2% to
$3.4 billion , operating income increased 8% to$184 million , the operating margin increased 30 basis points to 5.4%, net income increased 21% to$115 million and diluted earnings per share increased 26% to$0.82 . - Fourth quarter NSR2 growth in the design business, which accounts for approximately 90% of NSR and adjusted EBITDA, accelerated to 9%, a high point for the year and the highest quarterly growth rate in more than a decade.
-
The segment adjusted1 operating margin3 was 14.6% in the fourth quarter, which contributed to a full year margin of 14.2%, which is a 40 basis point increase over the prior year and exceeded the Company’s guidance.
-
The Company continued to expand margins while investing in growth and despite the impacts from the stronger
U.S. dollar.
-
The Company continued to expand margins while investing in growth and despite the impacts from the stronger
-
Full year adjusted1 EBITDA4 increased by 9% and adjusted1 EPS increased by 23%.
- Adjusted for foreign exchange impacts to fiscal 2022 results as compared to initial guidance, adjusted EBITDA and adjusted EPS increased by 10% and 26%, respectively.
-
Total backlog in the design business increased by 8%7, including a 1.2 book-to-burn ratio8 in the
Americas design business in the fourth quarter.
Cash Flow, Balance Sheet and Capital Allocation Update
-
Fourth quarter operating cash flow of
$316 million and free cash flow5 of$257 million contributed to full year operating cash flow of$714 million and free cash flow of$586 million , which resulted in achieving the Company’s free cash flow guidance for an eighth consecutive year. -
The Company’s capital allocation policy is built on deploying capital to the highest returning opportunities, including investments in organic growth and the continued intent to return substantially all available cash flow to stockholders through share repurchases and dividends.
-
Returned nearly
$500 million to stockholders in fiscal 2022 through share repurchases and dividends. - Capital returns over the past 12 months equate to approximately 5% of the Company’s current market capitalization.
-
Repurchased 16% of shares outstanding since the initiation of the repurchase program in
September 2020 .
-
Returned nearly
- The Company continues to benefit from a strong balance sheet that provides a competitive advantage, with approximately 80% of its debt fixed, swapped to fixed, or capped over the next several years and no bond maturities until 2027.
“We delivered another year of strong performance, expanded the earnings power of the company, furthered our competitive advantages, and won transformative projects that speak to our technical leadership and create increased visibility,” said
“Through the realization of our Think and Act Globally strategy and as leaders in the high-value transportation, water, environment and green design markets, we are better positioned than ever to capitalize on multiple secular growth drivers that are positively impacting our markets,” said
“Our disciplined focus on high-returning organic growth, expanding margins and returning capital to our shareholders through repurchases and our quarterly dividend program are a reflection of our commitment to shareholder value creation,” said
Business Segments
Revenue in the fourth quarter was
NSR2 in the fourth quarter was
Fourth quarter operating income declined by 5% over the prior year to
International
Revenue in the fourth quarter was
NSR2 in the fourth quarter was
Fourth quarter operating income increased by 32% over the prior year to
Revenue in the fourth quarter was
Balance Sheet
As of
Tax Rate
The effective tax rate was 21.4% in the fourth quarter and 24.7% in the full year. On an adjusted1 basis, the effective tax rate was 27.3% and 24.5% in the full year. The adjusted tax rate was derived by re-computing the quarterly effective tax rate on adjusted net income.10 The adjusted tax expense differs from the GAAP tax expense based on the taxability or deductibility and tax rate applied to each of the adjustments.
Conference Call
presentation focusing on the Company's results, strategy and operating trends, and outlook. Interested parties can listen to the conference call and view accompanying slides via webcast at https://investors.aecom.com. The webcast will be available for replay following the call.
1 Excludes the impact of certain items, such as restructuring costs, amortization of intangible assets and other items. See Regulation G Information for a reconciliation of non-GAAP measures to the comparable GAAP measures.
2 Revenue, less pass-through revenue; growth rates are presented on a constant-currency basis.
3 Reflects segment operating performance, excluding
4 Net income before interest expense, tax expense, depreciation and amortization.
5 Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from disposals of property and equipment.
6 Return on invested capital, or ROIC, reflects continuing operations and is calculated as the sum of adjusted net income as presented in the Company’s Regulation G Information and adjusted interest expense, net of interest income, divided by average quarterly invested capital as defined as the sum of attributable shareholder’s equity and total debt, less cash and cash equivalents.
7 On a constant-currency basis.
8 Book-to-burn ratio is defined as the dollar amount of wins divided by revenue recognized during the period, including revenue related to work performed in unconsolidated joint ventures.
9 Net leverage is comprised of EBITDA as defined in the Company’s credit agreement dated
10 Inclusive of non-controlling interest deduction and adjusted for financing charges in interest expense, the amortization of intangible assets and is based on continuing operations.
About
Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, coronavirus impacts, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of
Non-GAAP Financial Information
This press release contains financial information calculated other than in accordance with
Our non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of these non-GAAP measures is found in the Regulation G Information tables at the back of this release. The Company is unable to reconcile its non-GAAP financial guidance and long-term financial targets due to uncertainties in these non-operating items as well as other adjustments to net income.
|
Consolidated Statements of Income (unaudited - in thousands, except per share data) |
|||||||||||||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
|
|
|
|
|
%
|
|
|
|
|
|
%
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue |
|
$ |
3,353,767 |
|
|
$ |
3,426,113 |
|
|
2.2 |
% |
|
$ |
13,340,852 |
|
|
$ |
13,148,182 |
|
|
(1.4 |
)% |
|
|
Cost of revenue |
|
3,136,509 |
|
|
3,208,845 |
|
|
2.3 |
% |
|
12,542,431 |
|
|
12,300,208 |
|
|
(1.9 |
)% |
|
||||
|
Gross profit |
|
217,258 |
|
|
217,268 |
|
|
0.0 |
% |
|
798,421 |
|
|
847,974 |
|
|
6.2 |
% |
|
||||
|
Equity in earnings of joint ventures |
|
11,416 |
|
|
26,282 |
|
|
130.2 |
% |
|
35,044 |
|
|
53,640 |
|
|
53.1 |
% |
|
||||
|
General and administrative expenses |
|
(44,365 |
) |
|
(40,944 |
) |
|
(7.7 |
)% |
|
(155,072 |
) |
|
(147,309 |
) |
|
(5.0 |
)% |
|
||||
|
Restructuring costs |
|
(14,085 |
) |
|
(18,574 |
) |
|
31.9 |
% |
|
(48,840 |
) |
|
(107,501 |
) |
|
120.1 |
% |
|
||||
|
Income from operations |
|
170,224 |
|
|
184,032 |
|
|
8.1 |
% |
|
629,553 |
|
|
646,804 |
|
|
2.7 |
% |
|
||||
|
Other income |
|
5,791 |
|
|
3,635 |
|
|
(37.2 |
)% |
|
17,603 |
|
|
14,152 |
|
|
(19.6 |
)% |
|
||||
|
Interest expense |
|
(25,863 |
) |
|
(33,302 |
) |
|
28.8 |
% |
|
(238,352 |
) |
|
(110,274 |
) |
|
(53.7 |
)% |
|
||||
|
Income from continuing operations before taxes |
|
150,152 |
|
|
154,365 |
|
|
2.8 |
% |
|
408,804 |
|
|
550,682 |
|
|
34.7 |
% |
|
||||
|
Income tax expense for continuing operations |
|
46,200 |
|
|
32,967 |
|
|
(28.6 |
)% |
|
89,011 |
|
|
136,051 |
|
|
52.8 |
% |
|
||||
|
Income from continuing operations |
|
103,952 |
|
|
121,398 |
|
|
16.8 |
% |
|
319,793 |
|
|
414,631 |
|
|
29.7 |
% |
|
||||
|
Income (loss) from discontinued operations |
|
2,355 |
|
|
(8,395 |
) |
|
(456.5 |
)% |
|
(116,813 |
) |
|
(79,929 |
) |
|
(31.6 |
)% |
|
||||
|
Net income |
|
106,307 |
|
|
113,003 |
|
|
6.3 |
% |
|
202,980 |
|
|
334,702 |
|
|
64.9 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income attributable to noncontrolling interests
|
|
(8,949 |
) |
|
(5,986 |
) |
|
(33.1 |
)% |
|
(25,109 |
) |
|
(25,521 |
) |
|
1.6 |
% |
|
||||
|
Net (income) loss attributable to noncontrolling interests from discontinued operations |
|
(1,191 |
) |
|
(1,399 |
) |
|
17.5 |
% |
|
(4,686 |
) |
|
1,430 |
|
|
(130.5 |
)% |
|
||||
|
Net (income) loss attributable to noncontrolling interests |
|
(10,140 |
) |
|
(7,385 |
) |
|
(27.2 |
)% |
|
(29,795 |
) |
|
(24,091 |
) |
|
(19.1 |
)% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income attributable to |
|
95,003 |
|
|
115,412 |
|
|
21.5 |
% |
|
294,684 |
|
|
389,110 |
|
|
32.0 |
% |
|
||||
|
Net income (loss) attributable to |
|
1,164 |
|
|
(9,794 |
) |
|
(941.4 |
)% |
|
(121,499 |
) |
|
(78,499 |
) |
|
(35.4 |
)% |
|
||||
|
Net income attributable to |
|
$ |
96,167 |
|
|
$ |
105,618 |
|
|
9.8 |
% |
|
$ |
173,185 |
|
|
$ |
310,611 |
|
|
79.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income (loss) attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Continuing operations |
|
$ |
0.66 |
|
|
$ |
0.83 |
|
|
25.8 |
% |
|
$ |
2.00 |
|
|
$ |
2.76 |
|
|
38.0 |
% |
|
|
Discontinued operations |
|
|
0.01 |
|
|
|
(0.07 |
) |
|
(800.0 |
)% |
|
|
(0.82 |
) |
|
|
(0.55 |
) |
|
(32.9 |
)% |
|
|
Basic earnings per share |
|
$ |
0.67 |
|
|
$ |
0.76 |
|
|
13.4 |
% |
|
$ |
1.18 |
|
|
$ |
2.21 |
|
|
87.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Continuing operations |
|
$ |
0.65 |
|
|
$ |
0.82 |
|
|
26.2 |
% |
|
$ |
1.97 |
|
|
$ |
2.73 |
|
|
38.6 |
% |
|
|
Discontinued operations |
|
|
0.01 |
|
|
|
(0.07 |
) |
|
(800.0 |
)% |
|
|
(0.81 |
) |
|
|
(0.55 |
) |
|
(32.1 |
)% |
|
|
Diluted earnings per share |
|
$ |
0.66 |
|
|
$ |
0.75 |
|
|
13.6 |
% |
|
$ |
1.16 |
|
|
$ |
2.18 |
|
|
87.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic |
|
143,812 |
|
|
139,626 |
|
|
(2.9 |
)% |
|
147,279 |
|
|
140,768 |
|
|
(4.4 |
)% |
|
||||
|
Diluted |
|
146,581 |
|
|
141,344 |
|
|
(3.6 |
)% |
|
149,676 |
|
|
142,696 |
|
|
(4.7 |
)% |
|
||||
|
Balance Sheet Information (unaudited - in thousands) |
||||||
|
|
|
|
|
|
||
|
Balance Sheet Information: |
|
|
|
|
||
|
Total cash and cash equivalents |
$ |
1,229,196 |
|
$ |
1,172,209 |
|
|
Accounts receivable and contract assets – net |
|
3,988,522 |
|
|
3,723,111 |
|
|
Working capital |
|
651,828 |
|
|
418,639 |
|
|
Total debt, excluding unamortized debt issuance costs |
|
2,235,661 |
|
|
2,224,602 |
|
|
Total assets |
|
11,733,954 |
|
|
11,139,315 |
|
|
Total |
|
2,712,470 |
|
|
2,476,654 |
|
|
Reportable Segments (unaudited - in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
International |
|
Corporate |
Total |
|||||||||||||||
|
Three Months Ended |
|
|
|
|
||||||||||||||||
|
Revenue |
$ |
2,618,964 |
|
$ |
806,724 |
|
$ |
425 |
|
$ |
- |
|
$ |
3,426,113 |
|
|||||
|
Cost of revenue |
|
2,454,144 |
|
|
754,701 |
|
|
- |
|
|
- |
|
|
3,208,845 |
|
|||||
|
Gross profit |
|
164,820 |
|
|
52,023 |
|
|
425 |
|
|
- |
|
|
217,268 |
|
|||||
|
Equity in earnings of joint ventures |
|
4,647 |
|
|
5,585 |
|
|
16,050 |
|
|
- |
|
|
26,282 |
|
|||||
|
General and administrative expenses |
|
- |
|
|
- |
|
|
(4,005 |
) |
|
(36,939 |
) |
|
(40,944 |
) |
|||||
|
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
(18,574 |
) |
|
(18,574 |
) |
|||||
|
Income from operations |
$ |
169,467 |
|
$ |
57,608 |
|
$ |
12,470 |
|
$ |
(55,513 |
) |
$ |
184,032 |
|
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Gross profit as a % of revenue |
|
6.3 |
% |
|
6.4 |
% |
|
- |
|
|
- |
|
|
6.3 |
% |
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|||||||||||||||
|
Revenue |
$ |
2,582,233 |
|
$ |
771,175 |
|
$ |
359 |
|
$ |
- |
|
$ |
3,353,767 |
|
|||||
|
Cost of revenue |
|
2,407,903 |
|
|
728,606 |
|
|
- |
|
|
- |
|
|
3,136,509 |
|
|||||
|
Gross profit |
|
174,330 |
|
|
42,569 |
|
|
359 |
|
|
- |
|
|
217,258 |
|
|||||
|
Equity in earnings of joint ventures |
|
3,819 |
|
|
1,044 |
|
|
6,553 |
|
|
- |
|
|
11,416 |
|
|||||
|
General and administrative expenses |
|
- |
|
|
- |
|
|
(5,342 |
) |
|
(39,023 |
) |
|
(44,365 |
) |
|||||
|
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
(14,085 |
) |
|
(14,085 |
) |
|||||
|
Income from operations |
$ |
178,149 |
|
$ |
43,613 |
|
$ |
1,570 |
|
$ |
(53,108 |
) |
$ |
170,224 |
|
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Gross profit as a % of revenue |
|
6.8 |
% |
|
5.5 |
% |
|
- |
|
|
- |
|
|
6.5 |
% |
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Twelve Months Ended |
|
|
|
|
|
|||||||||||||||
|
Revenue |
$ |
9,939,333 |
|
$ |
3,206,625 |
|
$ |
2,224 |
|
$ |
- |
|
$ |
13,148,182 |
|
|||||
|
Cost of revenue |
|
9,299,436 |
|
|
3,000,772 |
|
|
- |
|
|
- |
|
|
12,300,208 |
|
|||||
|
Gross profit |
|
639,897 |
|
|
205,853 |
|
|
2,224 |
|
|
- |
|
|
847,974 |
|
|||||
|
Equity in earnings of joint ventures |
|
13,871 |
|
|
15,313 |
|
|
24,456 |
|
|
- |
|
|
53,640 |
|
|||||
|
General and administrative expenses |
|
- |
|
|
- |
|
|
(12,649 |
) |
|
(134,660 |
) |
|
(147,309 |
) |
|||||
|
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
(107,501 |
) |
|
(107,501 |
) |
|||||
|
Income from operations |
$ |
653,768 |
|
$ |
221,166 |
|
$ |
14,031 |
|
$ |
(242,161 |
) |
$ |
646,804 |
|
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Gross profit as a % of revenue |
|
6.4 |
% |
|
6.4 |
% |
|
- |
|
|
- |
|
|
6.4 |
% |
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Contracted backlog |
$ |
17,507,944 |
|
$ |
3,855,488 |
|
$ |
- |
|
$ |
- |
|
$ |
21,363,432 |
|
|||||
|
Awarded backlog |
|
17,355,035 |
|
|
1,215,786 |
|
|
- |
|
|
- |
|
|
18,570,821 |
|
|||||
|
Unconsolidated JV backlog |
|
249,492 |
|
|
- |
|
|
- |
|
|
- |
|
|
249,492 |
|
|||||
|
Total backlog |
$ |
35,112,471 |
|
$ |
5,071,274 |
|
$ |
- |
|
$ |
- |
|
$ |
40,183,745 |
|
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Total backlog – Design only |
$ |
13,954,382 |
|
$ |
5,071,274 |
|
$ |
- |
|
$ |
- |
|
$ |
19,025,656 |
|
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Twelve Months Ended |
|
|
|
|
|
|||||||||||||||
|
Revenue |
$ |
10,226,287 |
|
$ |
3,112,566 |
|
$ |
1,999 |
|
$ |
- |
|
$ |
13,340,852 |
|
|||||
|
Cost of revenue |
|
9,594,675 |
|
|
2,947,756 |
|
|
- |
|
|
- |
|
|
12,542,431 |
|
|||||
|
Gross profit |
|
631,612 |
|
|
164,810 |
|
|
1,999 |
|
|
- |
|
|
798,421 |
|
|||||
|
Equity in earnings of joint ventures |
|
11,443 |
|
|
12,192 |
|
|
11,409 |
|
|
- |
|
|
35,044 |
|
|||||
|
General and administrative expenses |
|
- |
|
|
- |
|
|
(11,112 |
) |
|
(143,960 |
) |
|
(155,072 |
) |
|||||
|
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
(48,840 |
) |
|
(48,840 |
) |
|||||
|
Income from operations |
$ |
643,055 |
|
$ |
177,002 |
|
$ |
2,296 |
|
$ |
(192,800 |
) |
$ |
629,553 |
|
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Gross profit as a % of revenue |
|
6.2 |
% |
|
5.3 |
% |
|
- |
|
|
- |
|
|
6.0 |
% |
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Contracted backlog |
$ |
19,085,092 |
|
$ |
4,019,846 |
|
$ |
- |
|
$ |
- |
|
$ |
23,104,938 |
|
|||||
|
Awarded backlog |
|
14,036,004 |
|
|
1,189,016 |
|
|
- |
|
|
- |
|
|
15,225,020 |
|
|||||
|
Unconsolidated JV backlog |
|
248,098 |
|
|
- |
|
|
- |
|
|
- |
|
|
248,098 |
|
|||||
|
Total backlog |
$ |
33,369,194 |
|
$ |
5,208,862 |
|
$ |
- |
|
$ |
- |
|
$ |
38,578,056 |
|
|||||
|
|
|
|
|
|
|
|||||||||||||||
|
Total backlog – Design only |
$ |
12,907,085 |
|
$ |
5,208,862 |
|
$ |
- |
|
$ |
- |
|
$ |
18,115,947 |
||||||
|
Regulation G Information (in millions) |
|||||||||||||||||||
|
Reconciliation of Revenue to Net Service Revenue (NSR) |
|||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Revenue |
$ |
2,582.2 |
|
$ |
2,457.0 |
|
$ |
2,618.9 |
|
$ |
10,226.3 |
|
$ |
9,939.3 |
|
|
|||
|
Less: Pass-through revenue |
|
1,662.4 |
|
|
1,530.7 |
|
|
1,671.4 |
|
|
6,629.4 |
|
|
6,228.2 |
|
|
|||
|
Net service revenue |
$ |
919.8 |
|
$ |
926.3 |
|
$ |
947.5 |
|
$ |
3,596.9 |
|
$ |
3,711.1 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Revenue |
$ |
771.2 |
|
$ |
784.2 |
|
$ |
806.8 |
|
$ |
3,112.6 |
|
$ |
3,206.7 |
|
|
|||
|
Less: Pass-through revenue |
|
152.3 |
|
|
146.4 |
|
|
165.3 |
|
|
603.1 |
|
|
609.0 |
|
|
|||
|
Net service revenue |
$ |
618.9 |
|
$ |
637.8 |
|
$ |
641.5 |
|
$ |
2,509.5 |
|
$ |
2,597.7 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Segment Performance (excludes ACAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Revenue |
$ |
3,353.4 |
|
$ |
3,241.2 |
|
$ |
3,425.7 |
|
$ |
13,338.9 |
|
$ |
13,146.0 |
|
|
|||
|
Less: Pass-through revenue |
|
1,814.7 |
|
|
1,677.1 |
|
|
1,836.7 |
|
|
7,232.5 |
|
|
6,837.2 |
|
|
|||
|
Net service revenue |
$ |
1,538.7 |
|
$ |
1,564.1 |
|
$ |
1,589.0 |
|
$ |
6,106.4 |
|
$ |
6,308.8 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Revenue |
$ |
3,353.8 |
|
$ |
3,241.7 |
|
$ |
3,426.1 |
|
$ |
13,340.9 |
|
$ |
13,148.2 |
|
|
|||
|
Less: Pass-through revenue |
|
1,814.7 |
|
|
1,677.1 |
|
|
1,836.7 |
|
|
7,232.5 |
|
|
6,837.2 |
|
|
|||
|
Net service revenue |
$ |
1,539.1 |
|
$ |
1,564.6 |
|
$ |
1,589.4 |
|
$ |
6,108.4 |
|
$ |
6,311.0 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Reconciliation of Total Debt to Net Debt |
|
|||||||||
|
|
Balances at: |
|||||||||
|
|
|
|
|
|
|
|
||||
|
Short-term debt |
$ |
4.4 |
|
$ |
2.3 |
|
$ |
5.0 |
|
|
|
Current portion of long-term debt |
|
49.5 |
|
|
42.3 |
|
|
43.6 |
|
|
|
Long-term debt, excluding unamortized debt issuance costs |
|
2,181.8 |
|
|
2,182.8 |
|
|
2,176.0 |
|
|
|
Total debt |
|
2,235.7 |
|
|
2,227.4 |
|
|
2,224.6 |
|
|
|
Less: Total cash and cash equivalents |
|
1,229.2 |
|
|
1,010.7 |
|
|
1,172.2 |
|
|
|
Net debt |
$ |
1,006.5 |
|
$ |
1,216.7 |
|
$ |
1,052.4 |
|
|
|
|
|
|
|
|
|
|
||||
|
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
|
|||||||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net cash provided by operating activities |
$ |
318.1 |
|
|
$ |
204.9 |
|
|
$ |
315.6 |
|
|
$ |
704.7 |
|
|
$ |
713.7 |
|
|
||
|
Capital expenditures, net |
|
(19.1 |
) |
|
|
(22.0 |
) |
|
|
(58.2 |
) |
|
|
(121.5 |
) |
|
|
(128.1 |
) |
|
||
|
Free cash flow |
$ |
299.0 |
|
|
$ |
182.9 |
|
|
$ |
257.4 |
|
|
$ |
583.2 |
|
|
$ |
585.6 |
|
|
||
|
Regulation G Information (in millions, except per share data) |
|||||||||||||||||||||
|
|
Three Months Ended |
Twelve Months Ended |
|||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Reconciliation of Income from Operations to Adjusted Income from Operations |
|||||||||||||||||||||
|
Income from operations |
$ |
170.3 |
|
$ |
183.0 |
|
$ |
184.0 |
|
$ |
629.6 |
|
$ |
646.8 |
|
||||||
|
Restructuring costs |
|
14.0 |
|
|
12.3 |
|
|
18.5 |
|
|
48.8 |
|
|
107.5 |
|
||||||
|
Amortization of intangible assets |
|
6.7 |
|
|
4.7 |
|
|
4.7 |
|
|
22.6 |
|
|
18.9 |
|
||||||
|
Adjusted income from operations |
$ |
191.0 |
|
$ |
200.0 |
|
$ |
207.2 |
|
$ |
701.0 |
|
$ |
773.2 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Reconciliation of Income from Continuing Operations Before Taxes to
|
|||||||||||||||||||||
|
Income from continuing operations before taxes |
$ |
150.1 |
|
$ |
159.9 |
|
$ |
154.4 |
|
$ |
408.8 |
|
$ |
550.7 |
|
||||||
|
Restructuring costs |
|
14.0 |
|
|
12.3 |
|
|
18.5 |
|
|
48.8 |
|
|
107.5 |
|
||||||
|
Amortization of intangible assets |
|
6.7 |
|
|
4.7 |
|
|
4.7 |
|
|
22.6 |
|
|
18.9 |
|
||||||
|
Prepayment premium on debt |
|
- |
|
|
- |
|
|
- |
|
|
117.5 |
|
|
- |
|
||||||
|
Financing charges in interest expense |
|
1.3 |
|
|
1.2 |
|
|
1.3 |
|
|
11.4 |
|
|
4.9 |
|
||||||
|
Adjusted income from continuing operations before taxes |
$ |
172.1 |
|
$ |
178.1 |
|
$ |
178.9 |
|
$ |
609.1 |
|
$ |
682.0 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Reconciliation of Income Taxes for Continuing Operations to
|
|||||||||||||||||||||
|
Income tax expense for continuing operations |
$ |
46.1 |
|
$ |
44.5 |
|
$ |
33.0 |
|
$ |
89.0 |
|
$ |
136.1 |
|
||||||
|
Tax effect of the above adjustments* |
|
6.0 |
|
|
4.6 |
|
|
7.2 |
|
|
50.6 |
|
|
25.2 |
|
||||||
|
Valuation allowances and other tax only items |
|
(7.3 |
) |
|
(1.6 |
) |
|
6.9 |
|
|
22.0 |
|
|
(0.4 |
) |
||||||
|
Adjusted income tax expense for continuing operations |
$ |
44.8 |
|
$ |
47.5 |
|
$ |
47.1 |
|
$ |
161.6 |
|
$ |
160.9 |
|
||||||
|
* Adjusts income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Reconciliation of Net Income Attributable to Noncontrolling Interests from Continuing Operations to
|
|||||||||||||||||||||
|
Net income attributable to noncontrolling interests from continuing operations |
$ |
(8.9 |
) |
$ |
(8.5 |
) |
$ |
(6.0 |
) |
$ |
(25.1 |
) |
$ |
(25.5 |
) |
||||||
|
Amortization of intangible assets included in NCI, net of tax |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.6 |
) |
|
(0.5 |
) |
||||||
|
Adjusted net income attributable to noncontrolling interests from continuing operations |
$ |
(9.1 |
) |
$ |
(8.6 |
) |
$ |
(6.1 |
) |
$ |
(25.7 |
) |
$ |
(26.0 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Reconciliation of Net Income Attributable to |
|||||||||||||||||||||
|
Net income attributable to |
$ |
95.1 |
|
$ |
106.9 |
|
$ |
115.4 |
|
$ |
294.7 |
|
$ |
389.1 |
|
||||||
|
Restructuring costs |
|
14.0 |
|
|
12.3 |
|
|
18.5 |
|
|
48.8 |
|
|
107.5 |
|
||||||
|
Amortization of intangible assets |
|
6.7 |
|
|
4.7 |
|
|
4.7 |
|
|
22.6 |
|
|
18.9 |
|
||||||
|
Prepayment premium on debt |
|
- |
|
|
- |
|
|
- |
|
|
117.5 |
|
|
- |
|
||||||
|
Financing charges in interest expense |
|
1.3 |
|
|
1.2 |
|
|
1.3 |
|
|
11.4 |
|
|
4.9 |
|
||||||
|
Tax effect of the above adjustments* |
|
(6.0 |
) |
|
(4.6 |
) |
|
(7.2 |
) |
|
(50.6 |
) |
|
(25.2 |
) |
||||||
|
Valuation allowances and other tax only items |
|
7.3 |
|
|
1.6 |
|
|
(6.9 |
) |
|
(22.0 |
) |
|
0.4 |
|
||||||
|
Amortization of intangible assets included in NCI, net of tax |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.6 |
) |
|
(0.5 |
) |
||||||
|
Adjusted net income attributable to |
$ |
118.2 |
|
$ |
122.0 |
|
$ |
125.7 |
|
$ |
421.8 |
|
$ |
495.1 |
|
||||||
|
* Adjusts the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
|||||||||||||||||||||
|
Regulation G Information (in millions, except per share data) |
|||||||||||||||||||||
|
|
Three Months Ended |
Twelve Months Ended |
|||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Reconciliation of Net Income Attributable to |
|||||||||||||||||||||
|
Net income attributable to |
$ |
0.65 |
|
$ |
0.75 |
|
$ |
0.82 |
|
$ |
1.97 |
|
$ |
2.73 |
|
||||||
|
Per diluted share adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Restructuring costs |
|
0.09 |
|
|
0.09 |
|
|
0.13 |
|
|
0.33 |
|
|
0.75 |
|
||||||
|
Amortization of intangible assets |
|
0.05 |
|
|
0.03 |
|
|
0.03 |
|
|
0.15 |
|
|
0.13 |
|
||||||
|
Prepayment premium on debt |
|
- |
|
|
- |
|
|
- |
|
|
0.79 |
|
|
- |
|
||||||
|
Financing charges in interest expense |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.08 |
|
|
0.03 |
|
||||||
|
Tax effect of the above adjustments* |
|
(0.04 |
) |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.35 |
) |
|
(0.17 |
) |
||||||
|
Valuation allowances and other tax only items |
|
0.05 |
|
|
0.01 |
|
|
(0.05 |
) |
|
(0.15 |
) |
|
- |
|
||||||
|
Adjusted net income attributable to |
$ |
0.81 |
|
$ |
0.86 |
|
$ |
0.89 |
|
$ |
2.82 |
|
$ |
3.47 |
|
||||||
|
Weighted average shares outstanding – basic |
|
143.8 |
|
|
140.6 |
|
|
139.6 |
|
|
147.3 |
|
|
140.8 |
|
||||||
|
Weighted average shares outstanding – diluted |
|
146.6 |
|
|
142.2 |
|
|
141.3 |
|
|
149.7 |
|
|
142.7 |
|
||||||
|
* Adjusts the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above.
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
Reconciliation of Net Income Attributable to |
|||||||||||||||||||||
|
Net income attributable to |
$ |
95.1 |
|
$ |
106.9 |
|
$ |
115.4 |
|
$ |
294.7 |
|
$ |
389.1 |
|
||||||
|
Income tax expense |
|
46.1 |
|
|
44.5 |
|
|
33.0 |
|
|
89.0 |
|
|
136.1 |
|
||||||
|
Depreciation and amortization |
|
46.9 |
|
|
41.3 |
|
|
44.1 |
|
|
176.9 |
|
|
170.2 |
|
||||||
|
Interest income2 |
|
(2.0 |
) |
|
(2.8 |
) |
|
(2.3 |
) |
|
(6.7 |
) |
|
(8.2 |
) |
||||||
|
Interest expense |
|
25.8 |
|
|
27.4 |
|
|
33.3 |
|
|
238.3 |
|
|
110.3 |
|
||||||
|
Amortized bank fees included in interest expense |
|
(1.2 |
) |
|
(1.2 |
) |
|
(1.2 |
) |
|
(11.4 |
) |
|
(4.8 |
) |
||||||
|
EBITDA |
$ |
210.7 |
|
$ |
216.1 |
|
$ |
222.3 |
|
$ |
780.8 |
|
$ |
792.7 |
|
||||||
|
Restructuring costs |
|
14.1 |
|
|
12.3 |
|
|
18.6 |
|
|
48.9 |
|
|
107.6 |
|
||||||
|
Adjusted EBITDA |
$ |
224.8 |
|
$ |
228.4 |
|
$ |
240.9 |
|
$ |
829.7 |
|
$ |
900.3 |
|
||||||
|
Other income |
|
(5.8 |
) |
|
(4.3 |
) |
|
(3.7 |
) |
|
(17.6 |
) |
|
(14.2 |
) |
||||||
|
Depreciation1 |
|
(39.1 |
) |
|
(35.5 |
) |
|
(38.3 |
) |
|
(143.4 |
) |
|
(146.9 |
) |
||||||
|
Interest income2 |
|
2.0 |
|
|
2.8 |
|
|
2.2 |
|
|
6.7 |
|
|
8.1 |
|
||||||
|
Noncontrolling interests in income of consolidated subsidiaries, net of tax |
|
8.9 |
|
|
8.5 |
|
|
6.0 |
|
|
25.0 |
|
|
25.5 |
|
||||||
|
Amortization of intangible assets included in NCI,
|
|
0.2 |
|
|
0.1 |
|
|
0.1 |
|
|
0.6 |
|
|
0.4 |
|
||||||
|
Adjusted income from operations |
$ |
191.0 |
|
$ |
200.0 |
|
$ |
207.2 |
|
$ |
701.0 |
|
$ |
773.2 |
|
||||||
|
1 Excludes depreciation from discontinued operations
|
|||||||||||||||||||||
|
|
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Reconciliation of Segment Income from Operations to Adjusted Income from Operations |
||||||||||||||||
|
Americas Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Income from operations |
$ |
178.1 |
|
$ |
167.5 |
|
$ |
169.5 |
|
$ |
643.0 |
|
$ |
653.8 |
||
|
Amortization of intangible assets |
|
4.4 |
|
|
4.3 |
|
|
4.4 |
|
|
17.4 |
|
|
17.4 |
||
|
Adjusted income from operations |
$ |
182.5 |
|
$ |
171.8 |
|
$ |
173.9 |
|
$ |
660.4 |
|
$ |
671.2 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
International Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Income from operations |
$ |
43.6 |
|
$ |
55.8 |
|
$ |
57.6 |
|
$ |
177.0 |
|
$ |
221.2 |
||
|
Amortization of intangible assets |
|
2.3 |
|
|
0.3 |
|
|
0.3 |
|
|
5.2 |
|
|
1.4 |
||
|
Adjusted income from operations |
$ |
45.9 |
|
$ |
56.1 |
|
$ |
57.9 |
|
$ |
182.2 |
|
$ |
222.6 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Segment Performance (excludes ACAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Income from operations |
$ |
221.7 |
|
$ |
223.3 |
|
$ |
227.1 |
|
$ |
820.0 |
|
$ |
875.0 |
||
|
Amortization of intangible assets |
|
6.7 |
|
|
4.6 |
|
|
4.7 |
|
|
22.6 |
|
|
18.8 |
||
|
Adjusted income from operations |
$ |
228.4 |
|
$ |
227.9 |
|
$ |
231.8 |
|
$ |
842.6 |
|
$ |
893.8 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
FY2023 GAAP EPS Guidance based on Adjusted EPS Guidance |
||
|
(all figures approximate) |
Fiscal Year End 2023 |
|
|
GAAP EPS Guidance |
|
|
|
Adjusted EPS excludes: |
|
|
|
Amortization of intangible assets |
|
|
|
Amortization of deferred financing fees |
|
|
|
Restructuring expenses |
|
|
|
Tax effect of the above items |
( |
|
|
Adjusted EPS Guidance |
|
|
|
|
||
|
FY2023 GAAP Net Income Attributable to |
||
|
(in millions, all figures approximate) |
Fiscal Year End 2023 |
|
|
GAAP net income attributable to |
|
|
|
Adjusted net income attributable to |
|
|
|
Amortization of intangible assets |
|
|
|
Amortization of deferred financing fees |
|
|
|
Restructuring expenses |
|
|
|
Tax effect of the above items |
( |
|
|
Adjusted net income attributable to |
|
|
|
Adjusted EBITDA excludes: |
|
|
|
Depreciation |
|
|
|
Adjusted interest expense, net |
|
|
|
Tax expense, including tax effect of above items |
|
|
|
Adjusted EBITDA Guidance |
|
|
|
* Calculated based on the mid-point of AECOM’s fiscal year 2023 EPS guidance |
||
|
Regulation G Information |
||
|
FY2023 GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance |
||
|
(in millions, all figures approximate) |
Fiscal Year End 2023 |
|
|
GAAP Interest Expense Guidance |
|
|
|
Finance charges in interest expense |
( |
|
|
Interest income |
( |
|
|
Adjusted Net Interest Expense Guidance |
|
|
|
FY2023 GAAP Income Tax Guidance based on Adjusted Income Tax Guidance |
||
|
(in millions, all figures approximate) |
Fiscal Year End 2023 |
|
|
GAAP Income tax expense |
|
|
|
Tax effect of adjusting items |
|
|
|
Adjusted income tax expense |
|
|
|
FY2023 GAAP Operating Cash Flow Guidance based on Free Cash Flow Guidance |
||
|
(in millions, all figures approximate) |
Fiscal Year End 2023 |
|
|
Operating cash flow guidance |
|
|
|
Capital expenditures, net of proceeds from equipment disposals |
( |
|
|
Free cash flow guidance |
|
|
|
|
||
|
FY2023 GAAP Income from Operations as a % of Revenue Guidance based on
|
||
|
(all figures approximate) |
Fiscal Year End 2023 |
|
|
Income from operations as a % of revenue |
5.6% |
|
|
Pass-through revenues |
7.8% |
|
|
Amortization of intangible assets |
0.1% |
|
|
|
(0.1)% |
|
|
Corporate net expense |
1.0% |
|
|
Restructuring expenses |
0.2% |
|
|
Segment adjusted operating income as a % of net service revenue |
14.6% |
|
|
|
|
|
Note: Variances in tables are due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221114005380/en/
Investors:
Senior Vice President, Finance, Treasurer
213.593.8208
William.Gabrielski@aecom.com
Media:
Senior Vice President,
213.996.2367
Brendan.Ranson-Walsh@aecom.com
Source: