UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

 

Date of Report (Date of earliest event reported):  November 27, 2007

 

 

AECOM TECHNOLOGY CORPORATION

(Exact name of Registrant as specified in its charter)

 

Delaware

1-33447

61-1088522

(State or Other Jurisdiction

(Commission

(I.R.S. Employer

of Incorporation)

File Number)

Identification No.)

 

 

555 South Flower Street, Suite 3700

Los Angeles, California 90071

(Address of Principal Executive Offices, including Zip Code)

 

Registrant’s telephone number, including area code  (213) 593-8000

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

     o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

     o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

     o  Pre-commencement communications pursuant to Rule 14d-(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

     o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

 

Item 2.02.      Results of Operations and Financial Condition.

 

 On November 27, 2007, AECOM Technology Corporation issued a press release announcing the financial results for its fourth quarter and fiscal year ended September 30, 2007. A copy of the press release is attached to this report as Exhibit 99.1.  Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

Item 9.01       Financial Statements and Exhibits.

 

 (d)  Exhibits

 

 99.1    Press Release, dated November 27, 2007, announcing AECOM’s financial results for the  fourth quarter and fiscal year ended September 30, 2007.

 

 

 

2



 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.

 

 

 

 

 

AECOM TECHNOLOGY CORPORATION

 

 

 

 

 

 

Dated: November 27, 2007

By:

/s/ DAVID Y. GAN

 

 

David Y. Gan

 

 

Vice President, Assistant General Counsel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 



 

 

 

EXHIBIT INDEX

 

Exhibit

 

 

 

99.1

Press Release, dated November 27, 2007, announcing AECOM’s financial results for the fourth quarter and fiscal year ended September 30, 2007.

 

 

 

4


 

Exhibit 99.1

 

News Release

 

 

Contact:

Paul Gennaro

 

 

SVP & Chief Communications Officer

 

 

212.973.3167

 

 

paul.gennaro@aecom.com

 

 

AECOM reports strong net income, revenue, backlog for fourth quarter, full year fiscal 2007

 

AECOM reports fourth-quarter diluted EPS of 29 cents on revenue of $1.11 billion and full-year diluted EPS of $1.15 on revenue of $4.2 billion

 

                  Fourth-quarter diluted earnings per share of 29 cents.

                  Full-year diluted earnings per share of $1.15.

                  Net income for fourth quarter increased 89.2% year over year to $29.4 million.

                  Net income for year ended September 30 increased 86.8% year over year to $100.3 million.

                  Revenue for fourth quarter increased 23.2% year over year to $1.1 billion.

                  Revenue for year ended September 30 increased 23.8% year over year to $4.2 billion.

                  Cash flow from operations increased by 13% to $137 million for year ended September 30, 2007.

                  Backlog and Selected-Not-Booked at September 30 increased 25.6% year over year to $6.0 billion.

                  Diluted earnings-per-share range outlook of $1.19 to $1.26 provided for full fiscal year 2008.

 

LOS ANGELES (November 27, 2007) — 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 September 30, 2007.

 

AECOM reported net earnings of $29.4 million for the fourth quarter, or diluted earnings per share (EPS) of $0.29.  This represents an increase of 89.2% over net earnings of $15.5 million for the same period last year.

 

 



 

Fourth-quarter revenue increased to $1.1 billion, 23.2% higher than the fourth quarter of fiscal year 2006.

 

For the full fiscal year 2007, AECOM reported net earnings of $100.3 million, or diluted EPS of $1.15.  This represents an increase of 86.8% over net earnings of $53.7 million last year.  Revenue for the year was $4.2 billion — 23.8% higher than fiscal year 2006.

 

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.  AECOM’s revenue, net of other direct costs for the three months ended Sept. 30, 2007, increased 32.2% to $669.0 million.  For the full fiscal year 2007, the company’s revenue, net of other direct costs increased 26.6% to $2,405.3 million.

 

“Our results were marked by solid, sustained growth across our practice areas and throughout our global operations,” said John M. Dionisio, AECOM president and chief executive officer.  “The growing global infrastructure market is fueling our strong end markets, particularly outside of the U.S.  We continue to leverage AECOM’s market and geographic diversification to drive organic growth as well as the acquisitive growth that is the hallmark of our business model.”

 

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 2007, the PTS segment reported revenue of $917.2 million and operating income of $52.0 million, compared to revenue of $733.4 million and operating income of $37.9 million for the same period during fiscal year 2006.  For the full year, the PTS segment reported revenue of $3.4 billion and operating income of $176.1 million, compared to revenue of $2.8 billion and operating income of $123.3 million during fiscal year 2006.

 

PTS revenue, net of other direct costs increased 32.6% for the three months ended Sept. 30, 2007, to $639.3 million.  For the full fiscal year 2007, PTS revenue, net of other direct costs increased 27.3% to $2,295.7 million.

 

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.

 

 

2



 

For the fourth quarter of fiscal year 2007, the MSS segment reported revenue of $197.1 million and operating income of $6.5 million, compared to revenue of $170.8 million and operating income of $6.3 million for the same period during fiscal year 2006.  For the full year, the MSS segment reported revenue of $818.6 million and operating income of $28.6 million, compared to revenue of $647.2 million and operating income of $22.9 million during fiscal year 2006.

 

MSS revenue, net of other direct costs increased 23.6% for the three months ended Sept. 30, 2007, to $29.7 million.  For the full fiscal year 2007, MSS revenue, net of other direct costs increased 13.3% to $109.6 million.

 

Outlook

AECOM announced backlog and selected-not-booked results totaling $6.0 billion at September 30, 2007, a 25.6% increase year over year.

 

“Our robust market activity continues to grow globally, as we win projects at a strong pace,” said Michael S. Burke, AECOM executive vice president, chief corporate officer and chief financial officer.  “Our non-U.S. revenue growth rate continues to thrive at 38% — far outpacing our already-strong 19% growth rate within the U.S.  Based on these results, we expect our fully diluted earnings per share results for fiscal year 2008 to be in the range of $1.19 to $1.26.”

 

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.  Interested parties can listen to the conference call and view accompanying slides via webcast on the Internet 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 and energy.  With more than 32,000 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.  AECOM serves clients in more than 60 countries and had revenue of 4.2 billion during fiscal year 2007.  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.

 

 

3



AECOM Technology Corporation

Condensed Consolidated Statement of Income

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,114,356

 

$

904,279

 

$

4,237,270

 

$

3,421,492

 

Other direct costs

 

445,394

 

398,305

 

1,832,001

 

1,521,775

 

Revenue, net of other direct costs

 

668,962

 

505,974

 

2,405,269

 

1,899,717

 

Cost of revenue, net of other direct costs

 

352,165

 

262,133

 

1,244,091

 

993,909

 

Gross profit

 

316,797

 

243,841

 

1,161,178

 

905,808

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of joint ventures

 

4,200

 

2,437

 

11,828

 

6,554

 

General and administrative expenses

 

278,692

 

217,792

 

1,017,067

 

808,953

 

Income from operations

 

42,305

 

28,486

 

155,939

 

103,409

 

 

 

 

 

 

 

 

 

 

 

Minority interest in share of earnings

 

7,346

 

5,421

 

16,404

 

13,924

 

Gain on sale of equity investment

 

 

 

11,286

 

 

Interest expense - net

 

(6,294

)

258

 

3,321

 

10,576

 

Income before income tax expense

 

41,253

 

22,807

 

147,500

 

78,909

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

11,860

 

7,270

 

47,203

 

25,223

 

Net income

 

$

29,393

 

$

15,537

 

$

100,297

 

$

53,686

 

 

 

 

 

 

 

 

 

 

 

Net income allocation:

 

 

 

 

 

 

 

 

 

Preferred stock dividend

 

$

65

 

$

80

 

$

249

 

$

2,205

 

Net income available for common stockholders

 

29,328

 

15,457

 

100,048

 

51,481

 

Net income

 

$

29,393

 

$

15,537

 

$

100,297

 

$

53,686

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.30

 

$

0.27

 

$

1.37

 

$

0.94

 

Diluted

 

$

0.29

 

$

0.20

 

$

1.15

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

98,362

 

56,700

 

73,091

 

54,856

 

Diluted

 

101,952

 

78,036

 

87,537

 

72,658

 

 

 

AECOM Technology Corporation

Balance Sheet and Cash Flow Information

(in thousands)

 

 

 

September 30,

 

September 30,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Balance Sheet Information:

 

 

 

 

 

Cash and cash equivalents

 

$

414,515

 

$

127,870

 

Working capital

 

597,655

 

201,323

 

Working capital, net of cash and cash equivalents

 

183,140

 

73,453

 

Total debt

 

47,950

 

137,455

 

Total stockholders’ (deficit) / equity

 

1,278,485

 

(290,894

)

 

 

 

 

 

 

Cash Flow Information:

 

 

 

 

 

Net cash provided by operating activities

 

$

137,463

 

$

121,266

 

 

 

4



 

AECOM TECHNOLOGY CORPORATION

(in thousands, except per share data)

Reportable Segments

 

 

 

Professional

 

Management

 

 

 

 

 

 

 

Technical

 

Support

 

 

 

 

 

 

 

Services

 

Services

 

Corporate

 

Total

 

Three Months Ended September 30, 2007

 

 

 

 

 

 

 

 

 

Revenue

 

$

917,247

 

$

197,109

 

$

 

$

1,114,356

 

Other direct costs

 

277,987

 

167,407

 

 

445,394

 

Revenue, net of other direct costs

 

639,260

 

29,702

 

 

668,962

 

Gross profit

 

304,583

 

12,214

 

 

316,797

 

Gross profit as a % of revenue

 

33.2

%

6.2

%

 

28.4

%

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

 

47.6

%

41.1

%

 

47.4

%

Equity in Earnings of joint ventures

 

1,750

 

2,450

 

 

4,200

 

General and administrative expenses

 

254,380

 

8,202

 

16,110

 

278,692

 

Segment income from operations

 

51,953

 

6,462

 

(16,110

)

42,305

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2006

 

 

 

 

 

 

 

 

 

Revenue

 

$

733,433

 

$

170,846

 

$

 

$

904,279

 

Other direct costs

 

251,497

 

146,808

 

 

398,305

 

Revenue, net of other direct costs

 

481,936

 

24,038

 

 

505,974

 

Gross profit

 

232,652

 

11,189

 

 

243,841

 

Gross profit as a % of revenue

 

31.7

%

6.5

%

 

27.0

%

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

 

48.3

%

46.5

%

 

48.2

%

Equity in Earnings of joint ventures

 

(354

)

2,791

 

 

2,437

 

General and administrative expenses

 

194,441

 

7,711

 

15,640

 

217,792

 

Segment income from operations

 

37,857

 

6,269

 

(15,640

)

28,486

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended September 30, 2007

 

 

 

 

 

 

 

 

 

Revenue

 

$

3,418,683

 

$

818,587

 

$

 

$

4,237,270

 

Other direct costs

 

1,122,967

 

709,034

 

 

1,832,001

 

Revenue, net of other direct costs

 

2,295,716

 

109,553

 

 

2,405,269

 

Gross profit

 

1,116,268

 

44,910

 

 

1,161,178

 

Gross profit as a % of revenue

 

32.7

%

5.5

%

 

27.4

%

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

 

48.6

%

41.0

%

 

48.3

%

Equity in Earnings of joint ventures

 

2,710

 

9,118

 

 

11,828

 

General and administrative expenses

 

942,921

 

25,402

 

48,744

 

1,017,067

 

Segment income from operations

 

176,057

 

28,626

 

(48,744

)

155,939

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended September 30, 2006

 

 

 

 

 

 

 

 

 

Revenue

 

$

2,774,304

 

$

647,188

 

$

 

$

3,421,492

 

Other direct costs

 

971,299

 

550,476

 

 

1,521,775

 

Revenue, net of other direct costs

 

1,803,005

 

96,712

 

 

1,899,717

 

Gross profit

 

866,935

 

38,873

 

 

905,808

 

Gross profit as a % of revenue

 

31.2

%

6.0

%

 

26.5

%

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

 

48.1

%

40.2

%

 

47.7

%

Equity in Earnings of joint ventures

 

1,612

 

4,942

 

 

6,554

 

General and administrative expenses

 

745,237

 

20,886

 

42,830

 

808,953

 

Segment income from operations

 

123,310

 

22,929

 

(42,830

)

103,409

 

 

 

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