EX-99.1 2 a10-15171_2ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

For Immediate Release

 

 

 

NR 10-0804

 

 

 

 

 

 

 

 

Contact:

Paul Gennaro

 

SVP & Chief Communications Officer

 

 

212.973.3167

 

 

Paul.Gennaro@aecom.com

 

AECOM reports 56 cents EPS for third quarter of fiscal year 2010

 

·                  Diluted earnings per share for the third quarter increased 24% year over year to 56 cents.

 

·                  Net income from continuing operations for third quarter increased 30% year over year to $65 million.

 

·                  Operating income for the third quarter increased 26% year over year to $93 million.

 

·                  Revenue, net of other direct costs, for the third quarter increased 9% year over year to $1.1 billion.

 

·                  Revenue for third quarter increased 6% year over year to $1.6 billion.

 

·                  Backlog at June 30, 2010, increased 4% year over year to $9.7 billion.

 

LOS ANGELES (Aug. 5, 2010) — 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 third quarter of fiscal year 2010, which ended June 30, 2010.

 

AECOM reported net income of $65 million for the third quarter, or diluted earnings per share (EPS) of 56 cents.  These results represent an increase of 30% over net income of $50 million — and an increase of 24% over diluted EPS of 45 cents — for the same period last year.  Operating income for the third quarter increased to $93 million, 26% higher than the same period last year.  For year-to-date fiscal year 2010, AECOM reported net income of $169 million and operating income of $242 million, an increase of 28% and 14%, respectively, compared to the same period last year.

 

Third-quarter revenue increased to $1.6 billion, 6% higher than the third quarter of fiscal year 2009.  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 third-quarter revenue, net of other direct costs, increased to $1.1 billion, 9% higher than the same period last year. For year-to-date fiscal year 2010, AECOM reported revenue of $4.7 billion and revenue, net of other direct costs of $3.1 billion, an increase of 5% and 9%, respectively, compared to the same period last year.

 

“Our efforts to leverage AECOM’s market and geographic diversification — as well as a growth model that balances organic and acquisitive growth — have served us well, as we continue to deliver industry-leading performance,” said John M. Dionisio, AECOM president and chief executive officer.

 

“The trajectory of our organic growth, which improved five percentage points over the second quarter, combined with the four acquisitions that we have announced since May reflect our ability to execute our growth strategy.  Our acquisitions of INOCSA; Tishman and Davis Langdon; and McNeil Technologies strengthen our positions in high speed rail, turnkey construction services and intelligence services for the U.S. government, respectively — all high-growth, higher-margin markets,” Dionisio said.  “In total, these acquisitions are expected to add approximately $1.7 billion in annual gross revenue and 5,800 employees to our growing enterprise.”

 

—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 third quarter of fiscal year 2010, the PTS segment reported revenue of $1.34 billion and operating income of $108 million, compared to revenue of $1.26 billion and operating income of $81 million for the same period during fiscal year 2009.  This represents a 7% increase in revenue and a 34% increase in operating income year over year.  PTS revenue, net of other direct costs, increased 8% year over year to $1.0 billion.

 

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 third quarter of fiscal year 2010, the MSS segment reported revenue of $297 million and operating income of $13 million, compared to revenue of $286 million and operating income of $13 million for the same period during fiscal year 2009.  This represents a 4% increase in revenue and a 2% decrease in operating income year over year.

 

Backlog

 

AECOM announced backlog totaling $9.7 billion at June 30, 2010, a 4% increase year over year.

 

Balance Sheet

 

At June 30, 2010, the company had $294 million of total cash and cash equivalents, $189 million of debt and $600 million in committed bank facilities with $439 million in unused capacity. Subsequent to the close of the quarter, the company announced the issuance of $250 million of senior notes for general corporate purposes, including acquisitions.

 

Outlook

 

“During the third quarter of fiscal year 2010, we continued to execute our growth strategy, resulting in a 30% year-over-year increase in net income,” said Michael S. Burke, AECOM executive vice president and chief financial officer. “Our PTS wins during the quarter improved by $250 million and our MSS opportunities remain strong, with nearly $7 billion of proposals currently under evaluation.  Based on our results through the third quarter of the fiscal year, we are maintaining our EPS guidance for fiscal year 2010 in the range of $1.97 to $2.05 — which at the midpoint of the range, represents annual growth of 18%.”

 

AECOM is hosting a conference call on Aug. 5, 2010, at 11 a.m. EDT, during which management will make a brief presentation 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 (866) 788-0539 or (857) 350-1677 and providing the passcode 75099755.

 

2



 

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 46,000 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 $6.3 billion during the 12-month period ended June 30, 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 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

 

Nine Months Ended

 

 

 

June 30, 2010

 

June 30, 2009

 

June 30, 2010

 

June 30, 2009

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,635,183

 

$

1,541,289

 

$

4,717,133

 

$

4,491,975

 

Other direct costs

 

572,519

 

570,654

 

1,640,279

 

1,664,289

 

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

 

1,062,664

 

970,635

 

3,076,854

 

2,827,686

 

Cost of revenue, net of other direct costs

 

947,599

 

883,118

 

2,770,917

 

2,571,629

 

Gross profit

 

115,065

 

87,517

 

305,937

 

256,057

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of joint ventures

 

5,941

 

6,153

 

13,770

 

16,793

 

General and administrative expenses

 

28,327

 

20,071

 

78,090

 

61,248

 

Income from operations

 

92,679

 

73,599

 

241,617

 

211,602

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

(253

)

3,248

 

3,280

 

(2,958

)

Interest income (expense), net

 

(1,126

)

(2,617

)

(4,486

)

(8,134

)

Income from continuing operations before income tax expense

 

91,300

 

74,230

 

240,411

 

200,510

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

22,665

 

21,187

 

60,178

 

57,078

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

68,635

 

53,043

 

180,233

 

143,432

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations, net of tax

 

 

1,118

 

(77

)

2,810

 

 

 

 

 

 

 

 

 

 

 

Net income

 

68,635

 

54,161

 

180,156

 

146,242

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest in income of consolidated subsidiaries, net of tax

 

(3,793

)

(3,040

)

(11,043

)

(10,818

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM

 

$

64,842

 

$

51,121

 

$

169,113

 

$

135,424

 

 

 

 

 

 

 

 

 

 

 

Net income allocation:

 

 

 

 

 

 

 

 

 

Preferred stock dividend

 

$

34

 

$

34

 

$

104

 

$

105

 

Net income available for common stockholders

 

64,808

 

51,087

 

169,009

 

135,319

 

Net income attributable to AECOM

 

$

64,842

 

$

51,121

 

$

169,113

 

$

135,424

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM per share:

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.57

 

$

0.45

 

$

1.49

 

$

1.24

 

Discontinued operations

 

 

0.01

 

(0.01

)

0.03

 

 

 

$

0.57

 

$

0.46

 

$

1.48

 

$

1.27

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.56

 

$

0.45

 

$

1.47

 

$

1.22

 

Discontinued operations

 

 

0.01

 

 

0.03

 

 

 

$

0.56

 

$

0.46

 

$

1.47

 

$

1.25

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

114,539

 

109,872

 

113,831

 

106,955

 

Diluted

 

115,620

 

111,515

 

115,054

 

108,761

 

 

4



 

AECOM Technology Corporation

Balance Sheet and Cash Flow Information

(in thousands)

 

 

 

June 30, 2010

 

September 30, 2009

 

Balance Sheet Information:

 

 

 

 

 

Cash and cash equivalents

 

$

293,882

 

$

290,777

 

Working capital

 

811,462

 

657,796

 

Working capital, net of cash and cash equivalents

 

517,580

 

367,019

 

Total debt

 

188,791

 

171,209

 

Total assets

 

3,999,840

 

3,789,881

 

Total stockholders’ equity

 

1,970,694

 

1,729,718

 

 

 

 

Nine Months Ended

 

 

 

June 30, 2010

 

June 30, 2009

 

Cash Flow Information:

 

 

 

 

 

Net cash provided by operating activities

 

$

43,749

 

$

107,866

 

 

5



 

AECOM TECHNOLOGY CORPORATION

Reportable Segments

(in thousands)

 

 

 

Professional
Technical
Services

 

Management
Support
Services

 

Corporate

 

Total

 

Three Months Ended June 30, 2010

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,337,803

 

$

297,380

 

$

 

$

1,635,183

 

Other direct costs

 

372,683

 

199,836

 

 

572,519

 

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

 

965,120

 

97,544

 

 

1,062,664

 

Cost of revenue, net of other direct costs

 

859,187

 

88,412

 

 

947,599

 

Gross profit

 

105,933

 

9,132

 

 

115,065

 

Equity in earnings of joint ventures

 

2,237

 

3,704

 

 

5,941

 

General and administrative expenses

 

 

 

28,327

 

28,327

 

Income from operations

 

$

108,170

 

$

12,836

 

$

(28,327

)

$

92,679

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

7.9

%

3.1

%

 

7.0

%

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

 

11.0

%

9.4

%

 

10.8

%

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2009

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,255,039

 

$

286,250

 

$

 

$

1,541,289

 

Other direct costs

 

358,024

 

212,630

 

 

570,654

 

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

 

897,015

 

73,620

 

 

970,635

 

Cost of revenue, net of other direct costs

 

819,830

 

63,288

 

 

883,118

 

Gross profit

 

77,185

 

10,332

 

 

87,517

 

Equity in earnings of joint ventures

 

3,397

 

2,756

 

 

6,153

 

General and administrative expenses

 

 

 

20,071

 

20,071

 

Income from operations

 

$

80,582

 

$

13,088

 

$

(20,071

)

$

73,599

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

6.2

%

3.6

%

 

5.7

%

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

 

8.6

%

14.0

%

 

9.0

%

 

6



 

AECOM TECHNOLOGY CORPORATION

Reportable Segments

(in thousands)

 

 

 

Professional
Technical
Services

 

Management
Support
Services

 

Corporate

 

Total

 

Nine Months Ended June 30, 2010

 

 

 

 

 

 

 

 

 

Revenue

 

$

3,859,190

 

$

857,943

 

$

 

$

4,717,133

 

Other direct costs

 

1,044,232

 

596,047

 

 

1,640,279

 

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

 

2,814,958

 

261,896

 

 

3,076,854

 

Cost of revenue, net of other direct costs

 

2,541,919

 

228,998

 

 

2,770,917

 

Gross profit

 

273,039

 

32,898

 

 

305,937

 

Equity in earnings of joint ventures

 

6,527

 

7,243

 

 

13,770

 

General and administrative expenses

 

 

 

78,090

 

78,090

 

Income from operations

 

$

279,566

 

$

40,141

 

$

(78,090

)

$

241,617

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

7.1

%

3.8

%

 

6.5

%

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

 

9.7

%

12.6

%

 

9.9

%

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

4,973,783

 

$

506,293

 

$

 

$

5,480,076

 

Awarded backlog

 

3,342,961

 

838,873

 

 

4,181,834

 

Total Backlog

 

$

8,316,744

 

$

1,345,166

 

$

 

$

9,661,910

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended June 30, 2009

 

 

 

 

 

 

 

 

 

Revenue

 

$

3,724,520

 

$

767,455

 

$

 

$

4,491,975

 

Other direct costs

 

1,080,460

 

583,829

 

 

1,664,289

 

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

 

2,644,060

 

183,626

 

 

2,827,686

 

Cost of revenue, net of other direct costs

 

2,419,260

 

152,369

 

 

2,571,629

 

Gross profit

 

224,800

 

31,257

 

 

256,057

 

Equity in earnings of joint ventures

 

9,783

 

7,010

 

 

16,793

 

General and administrative expenses

 

 

 

61,248

 

61,248

 

Income from operations

 

$

234,583

 

$

38,267

 

$

(61,248

)

$

211,602

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

6.0

%

4.1

%

 

5.7

%

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

 

8.5

%

17.0

%

 

9.1

%

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

4,660,168

 

$

445,510

 

$

 

$

5,105,678

 

Awarded backlog

 

3,845,985

 

296,880

 

 

4,142,865

 

Total Backlog

 

$

8,506,153

 

$

742,390

 

$

 

$

9,248,543

 

 

***

 

7