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):  February 8, 2011

 

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 February 8, 2011, AECOM Technology Corporation issued a press release announcing the financial results for its fiscal first quarter ended December 31, 2010. 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 February 8, 2011, announcing AECOM’s financial results for the first quarter ended December 31, 2010.

 

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: February 8, 2011

By:

/s/ DAVID Y. GAN

 

 

David Y. Gan

 

 

Vice President, Assistant General Counsel

 

3



 

EXHIBIT INDEX

 

Exhibit

 

 

 

 

 

99.1

 

Press Release, dated February 8, 2011, announcing AECOM’s financial results for the first quarter ended December 31, 2010.

 

4


 

Exhibit 99.1

 

GRAPHIC

For Immediate Release

 

NR 11-0203

 

Press Release

   Contact: Paul Gennaro

 

 

SVP & Chief Communications Officer

 

 

212.973.3167

 

 

Paul.Gennaro@aecom.com

 

AECOM reports first-quarter fiscal year 2011 financial results

 

Q1 EPS increased 20% year over year, backlog grew 55% to $15.5 billion

 

·                  First-quarter diluted earnings per share increased 20% year over year to 48 cents.

 

·                  Net income from continuing operations for the first quarter increased 25% year over year to $57 million.

 

·                  Revenue for the first quarter increased 31% year over year to $1.9 billion.

 

·                  Revenue, net of other direct costs, for the first quarter increased 26% year over year to $1.2 billion.

 

·                  Organic revenue, net of other direct costs, for the first quarter increased 7% year over year.

 

·                  Total backlog at Dec. 31, 2010, increased 55% year over year to $15.5 billion.

 

·                  Diluted earnings per share range outlook increased to $2.25 to $2.35 for full fiscal year 2011.

 

LOS ANGELES (Feb. 8, 2011) — 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 first quarter of fiscal year 2011, which ended Dec. 31, 2010.

 

AECOM reported net income from continuing operations of $57 million for the first quarter and diluted earnings per share (EPS) of 48 cents for the first quarter.  This represents an increase of 25% over net income from continuing operations of $46 million and an increase of 20% over diluted earnings per share of 40 cents for the same period last year.

 

First-quarter revenue was $1.9 billion, a 31% increase from the first quarter of fiscal year 2010.  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 and excludes such pass-through costs, also provides a valuable perspective on its business results.

 

First-quarter revenue, net of other direct costs, was $1.2 billion, representing a 26% increase over the same period last year.  Organic revenue, net of other direct costs, for the first quarter increased 7% year over year.  Organic revenue excludes revenue from companies acquired in the last 12 months.

 

“We saw strong organic-growth improvements in both revenue and backlog during the first quarter,” said John M. Dionisio, AECOM president and chief executive officer.  “Growth was driven primarily by AECOM’s increasing presence in high-growth, emerging markets and economies that export natural resources.

 

“We are poised for continued, strong performance as we capitalize on new organic-growth opportunities, drive revenue synergies from recent acquisitions and seize new opportunities created through increased cross-selling and the anticipated growth of alternative delivery procurement and public-private partnerships,” Dionisio said.

 

—more—

 



 

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 first quarter of fiscal year 2011, the PTS segment reported revenue of $1.6 billion and operating income of $92 million.  This represents an increase of 31% from revenue of $1.2 billion for the same period last year and an increase of 24% over operating income of $74 million for the same period last year.

 

PTS revenue, net of other direct costs, increased 23% for the first quarter of fiscal year 2011 to $1.1 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 first quarter of fiscal year 2011, the MSS segment reported revenue of $360 million and operating income of $22 million.  This represents an increase of 30% from revenue of $276 million for the same period last year and an increase of 62% over operating income of $13 million for the same period last year.

 

MSS revenue, net of other direct costs, increased 64% for the first quarter of fiscal year 2011, to $129 million.

 

Balance Sheet

 

As of Dec. 31, 2010, AECOM had $421 million of total cash and cash equivalents, $1.2 billion of debt with $600 million in committed bank facilities that have $269 million in unused capacity.

 

Backlog

 

AECOM announced backlog of $15.5 billion at Dec. 31, 2010, a 55% increase year over year.

 

Outlook

 

“Fiscal year 2011 is off to a solid start, said Michael S. Burke, AECOM executive vice president and chief financial officer.  “Our results for the quarter were positively impacted by continued improvement to our EBITDA margins — a 77-basis point improvement during the first quarter — driven by continued efficiencies and growth in higher-margin services.

 

“Together with improved organic growth and backlog, these results point to an improving business environment and give us confidence in our fiscal year 2011 outlook,” Burke said.

 

Based on its results through the first quarter of the fiscal year, as well as its backlog, AECOM has raised its EPS outlook for fiscal year 2011 to $2.25 to $2.35.

 

2



 

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) 362-5158 or 1 (617) 597-5397 and entering the passcode 46412728.  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.

 

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, energy, water and government.  With approximately 52,000 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 create, 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 $7.0 billion during the 12 months ended Dec. 31, 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.  W e 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

 

 

 

December 31,
2010

 

December 31,
2009

 

 

 

 

 

 

 

Revenue

 

$

1,936,183

 

$

1,480,784

 

Other direct costs

 

722,406

 

518,458

 

Revenue, net of other direct costs (non-GAAP)

 

1,213,777

 

962,326

 

Cost of revenue, net of other direct costs

 

1,108,442

 

879,349

 

Gross profit

 

105,335

 

82,977

 

 

 

 

 

 

 

Equity in earnings of joint ventures

 

8,097

 

4,378

 

General and administrative expenses

 

23,262

 

21,865

 

Income from operations

 

90,170

 

65,490

 

 

 

 

 

 

 

Other income (expense)

 

2,288

 

1,704

 

Interest income (expense), net

 

(9,872

)

(975

)

Income from continuing operations before income tax expense

 

82,586

 

66,219

 

 

 

 

 

 

 

Income tax expense

 

20,503

 

16,465

 

 

 

 

 

 

 

Income from continuing operations

 

62,083

 

49,754

 

 

 

 

 

 

 

Discontinued operations, net of tax

 

 

113

 

 

 

 

 

 

 

Net income

 

62,083

 

49,867

 

 

 

 

 

 

 

Non-controlling interest in income of consolidated subsidiaries, net of tax

 

(5,215

)

(4,085

)

 

 

 

 

 

 

Net income attributable to AECOM

 

$

56,868

 

$

45,782

 

 

 

 

 

 

 

Net income allocation:

 

 

 

 

 

Preferred stock dividend

 

$

2

 

$

35

 

Net income available for common stockholders

 

56,866

 

45,747

 

Net income attributable to AECOM

 

$

56,868

 

$

45,782

 

 

 

 

 

 

 

Net income attributable to AECOM per share:

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

0.48

 

$

0.40

 

Discontinued operations

 

 

 

 

 

$

0.48

 

$

0.40

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

Continuing operations

 

$

0.48

 

$

0.40

 

Discontinued operations

 

 

 

 

 

$

0.48

 

$

0.40

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

118,001

 

113,153

 

Diluted

 

119,115

 

114,498

 

 

4



 

AECOM Technology Corporation

Balance Sheet and Cash Flow Information

(in thousands)

 

 

 

December 31,
2010

 

September 30,
2010

 

Balance Sheet Information:

 

 

 

 

 

Cash and cash equivalents

 

$

421,238

 

$

612,857

 

Working capital

 

1,229,199

 

1,094,239

 

Working capital, net of cash and cash equivalents

 

807,961

 

481,382

 

Total debt

 

1,206,484

 

931,127

 

Total assets

 

5,620,040

 

5,242,909

 

Total AECOM stockholders’ equity

 

2,236,617

 

2,090,012

 

 

 

 

Three Months Ended

 

 

 

December 31,
2010

 

December 31,
2009

 

Cash Flow Information:

 

 

 

 

 

Net cash used in operating activities*

 

$

(179,345

)

$

(34,573

)

 


* Three months ended Dec. 31, 2010, figure includes payment for deferred compensation plan termination ($90 million) and associated excess tax benefits ($58 million).

 

5



 

AECOM TECHNOLOGY CORPORATION

Reportable Segments

(in thousands)

 

 

 

Professional
Technical
Services

 

Management
Support
Services

 

Corporate

 

Total

 

Three Months Ended December 31, 2010

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,575,771

 

$

360,412

 

$

 

$

1,936,183

 

Other direct costs

 

490,964

 

231,442

 

 

722,406

 

Revenue, net of other direct costs (non-GAAP)

 

1,084,807

 

128,970

 

 

1,213,777

 

Cost of revenue, net of other direct costs

 

995,273

 

113,169

 

 

1,108,442

 

Gross profit

 

89,534

 

15,801

 

 

105,335

 

Equity in earnings of joint ventures

 

2,110

 

5,987

 

 

8,097

 

General and administrative expenses

 

 

 

23,262

 

23,262

 

Income from operations

 

$

91,644

 

$

21,788

 

$

(23,262

)

$

90,170

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

5.7

%

4.4

%

 

5.4

%

Gross profit as a % of revenue, net of other direct costs (non-GAAP)

 

8.3

%

12.3

%

 

8.7

%

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

7,398,598

 

$

492,050

 

$

 

$

7,890,648

 

Awarded backlog

 

5,649,886

 

1,968,717

 

 

7,618,603

 

Total backlog

 

$

13,048,484

 

$

2,460,767

 

$

 

$

15,509,251

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2009

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,204,439

 

$

276,345

 

$

 

$

1,480,784

 

Other direct costs

 

320,598

 

197,860

 

 

518,458

 

Revenue, net of other direct costs (non-GAAP)

 

883,841

 

78,485

 

 

962,326

 

Cost of revenue, net of other direct costs

 

812,203

 

67,146

 

 

879,349

 

Gross profit

 

71,638

 

11,339

 

 

82,977

 

Equity in earnings of joint ventures

 

2,272

 

2,106

 

 

4,378

 

General and administrative expenses

 

 

 

21,865

 

21,865

 

Income from operations

 

$

73,910

 

$

13,445

 

$

(21,865

)

$

65,490

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

5.9

%

4.1

%

 

5.6

%

Gross profit as a % of revenue, net of other direct costs (non-GAAP)

 

8.1

%

14.4

%

 

8.6

%

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

5,434,423

 

$

544,256

 

$

 

$

5,978,679

 

Awarded backlog

 

3,562,220

 

469,232

 

 

4,031,452

 

Total backlog

 

$

8,996,643

 

$

1,013,488

 

$

 

$

10,010,131

 

 

***

 

6