News Release
Key Themes of the Event
- A growth strategy that is focused on capitalizing on existing strengths as the leading transportation, water and environment consulting firm to best advise clients who are increasingly investing to address critical ESG and sustainability priorities.
- New organization structure to complement a strong growth-oriented leadership team and a strategy that is focused on growing advisory, program management and digital consulting practices to leverage the Company’s strengths and to address clients’ most complex and challenging projects.
- Technology and innovation deployed at scale to transform how the Company works and delivers, leveraging its leadership position to accelerate design efficiencies and to increase quality and value for clients.
Key Financial Highlights and Targets
- Commitment to outgrow the industry organically by executing the Company’s growth plan.
- Setting a target to achieve a 15%+ segment adjusted1 operating income margin2 by fiscal 2024.
- Continued focus on investing in growth and innovation to support organic growth, and leveraging a culture of continuous improvement to ensure even more efficient delivery and higher margins.
- More than doubling adjusted1 EPS and free cash flow3 from fiscal 2020 to fiscal 2024, including greater than
$4.30 of adjusted EPS and greater than$680 million of free cash flow in fiscal 2024. - Deliver
$2.5 billion of cumulative free cash flow3 from fiscal 2021 to fiscal 2024, supported by a reiterated expectation to convert 75% of adjusted1 EBITDA5 to attributable, unlevered free cash flow on a normalized basis4. - Returning substantially all cash and free cash flow to investors through stock repurchases to enhance value created by the Company’s strategy.
- Increasing the Company’s long-term aspirational segment adjusted1 operating margin2 target to 17% as the organization challenges what is possible for the Professional Services business.
“We are as focused as ever on accelerating revenue growth and delivering against our new financial targets,” said
“Today we are making a substantial commitment to further our margin ambitions and deliver substantial per share earnings and free cash flow growth,” said
A live webcast of the event and a replay will be available online at https://investors.aecom.com.
1 Excludes the impact of non-operating items, such as non-core operating losses and transaction-related expenses, restructuring costs and other items. See Regulation G Information for a complete reconciliation of non-GAAP measures to the comparable GAAP measures.
2 Reflects segment operating performance, excluding
3 Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from equipment disposals.
4 Unlevered free cash flow is derived by adding back after-tax adjusted interest expense at a 25% tax rate and is after distributions to non-controlling interests. Normalized unlevered free cash flow excludes unusual events, such as transformational restructuring and other factors that may impact free cash flow.
5 Net income before interest expense, tax expense, depreciation, and amortization.
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.
When we provide our long term projections for adjusted EPS and free cash flow on a forward-looking basis for fiscal year 2024, the closest corresponding GAAP measure and a reconciliation of the differences between the non-GAAP expectation and the corresponding GAAP measure generally is not available without unreasonable effort due to the length, high variability, complexity and low visibility associated with the non-GAAP expectation projected against the multi-year forecast which could significantly impact the GAAP measure.
FY21 GAAP EPS Guidance based on Adjusted EPS Guidance |
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Fiscal Year End 2021 |
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FY21 GAAP Net Income Attributable to |
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*Calculated based on the mid-point of AECOM’s fiscal year 2021 guidance. |
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Reconciliation of FY21 Operating Cash Flow Guidance to Free Cash Flow Guidance |
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Operating Cash Flow Guidance |
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Capital expenditures, net of proceeds from equipment disposals |
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Free Cash Flow Guidance |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210216005454/en/
Investors:
Senior Vice President, Finance, Investor Relations
213.593.8208
William.Gabrielski@aecom.com
Media:
Vice President,
213.996.2367
Brendan.Ranson-Walsh@aecom.com
Source: