EX-99.1 2 a11-29654_1ex99d1.htm EX-99.1

 

Exhibit 99.1

 

GRAPHIC

 

For Immediate Release

 

NR 11-1102

 

 

 

Press Release

 

Media Contact
Paul Dickard
VP, External Communications
646.432.8473
Paul.Dickard@aecom.com

 

AECOM reports fourth-quarter, full fiscal year 2011 results

 

Fourth-quarter EPS increased 29% year over year; organic revenue, net of other direct costs, grew 7% year over year

 

·                  Fourth-quarter diluted earnings per share increased 29% year over year to 75 cents.

 

·                  Net income attributable to AECOM for the fourth quarter increased 29% year over year to $87 million.

 

·                  Operating income for the fourth quarter increased 35% year over year to $134 million.

 

·                  Revenue, net of other direct costs, for the fourth quarter increased 20% year over year to $1.4 billion.

 

·                  Revenue for the fourth quarter increased 16% year over year to $2.1 billion.

 

·                  Cash flow from operations for the fourth quarter increased 128% year over year to $262 million.

 

·                  Diluted earnings-per-share outlook of $2.45 to $2.65 provided for full fiscal year 2012.

 

LOS ANGELES (Nov. 10, 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 fourth quarter and full fiscal year ended Sept. 30, 2011.

 

AECOM reported net income attributable to AECOM of $87 million for the fourth quarter and diluted earnings per share (EPS) of 75 cents for the fourth quarter.  This represents an increase of 29% over net income of $68 million for the same period last year and an increase of 29% over diluted earnings per share of 58 cents for the same period last year.  Operating income for the fourth quarter increased 35% year over year to $134 million.

 

Fourth-quarter revenue was $2.1 billion, a 16% increase from the fourth 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, also provides a valuable perspective on its business results.  Fourth-quarter revenue, net of other direct costs, was $1.4 billion, representing a 20% increase over the same period last year.  Organic revenue, net of other direct costs, for the fourth quarter increased 7% year over year.

 

For the full fiscal year 2011, AECOM reported net income attributable to AECOM of $276 million and diluted EPS of $2.33.  This represents an increase of 16% over net income of $237 million for the same period last year and an increase of 14% over diluted EPS of $2.05 for the same period last year.  Operating income for the full year increased 24% year over year to $421 million.  For fiscal year 2011, the company’s revenue, net of other direct costs, increased 23% to $5.2 billion, while revenue for fiscal year 2011 was $8.0 billion — 23% higher than fiscal year 2010.

 

“Overall, 2011 was a good year for AECOM,” said John M. Dionisio, AECOM chairman and chief executive officer.  “During the year, we integrated a number of acquisitions, which strengthened our capabilities in important end markets, including construction, power, energy, mining, and cyber security and intelligence.  This enabled us to deliver record new wins of $9.3 billion, backlog of $15.6 billion and earnings growth of 14%.”

 

“We are poised for continued growth in 2012 with strong positions in the world’s most robust and well-funded infrastructure markets,” Dionisio added.  “Looking ahead, we will focus our global resources on our best and most profitable opportunities across our diversified end markets and geographies.  Finally, we will continue to focus on increasing cash flow and improving working capital and margins as well as effective capital allocation.”

 

--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 fourth quarter of fiscal year 2011, the PTS segment reported revenue of $1.9 billion and revenue, net of other direct costs, of $1.2 billion, compared to revenue of $1.5 billion and revenue, net of other direct costs, of $1.0 billion in the same period last year.  This represents a 23% increase in revenue and an 18% increase in revenue, net of other direct costs.  PTS segment operating income increased 22% from last year to $147 million.

 

For the full year, the PTS segment reported revenue of $6.9 billion and revenue, net of other direct costs, of $4.6 billion compared to revenue of $5.4 billion and revenue, net of other direct costs, of $3.8 billion last year.  This represents an increase of 27% in revenue and a 20% increase in revenue, net of other direct costs, from last year.  In addition, full year PTS segment operating income increased 11% from last year to $445 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.

 

For the fourth quarter of fiscal year 2011, the MSS segment reported revenue of $235 million and revenue, net of other direct costs, of $147 million, compared to revenue of $294 million, and revenue, net of other direct costs, of $105 million for the same period during fiscal year 2010.  This represents a 20% decrease in revenue contrasted by a 40% increase in revenue, net of other direct costs, highlighting a change in the mix of the business.  In addition, the MSS segment reported operating income of $18 million compared to $12 million for the same period during fiscal year 2010, which represents a 56% year-over-year increase.

 

For the full year, the MSS segment reported revenue of $1.16 billion and operating income of $78 million.  This represents an increase of 1% over revenue of $1.15 billion for fiscal year 2010 and an increase of 51% over operating income of $52 million for fiscal year 2010.  For the full fiscal year 2011, MSS revenue, net of other direct costs, increased 55% to $569 million.

 

Cash Flow and Balance Sheet

 

Cash flow from operations for the fourth quarter of fiscal year 2011 increased by 128% from the prior year to $262 million.  As of Sept. 30, 2011, AECOM had $457 million of total cash and cash equivalents, $1.2 billion of debt and $1.05 billion in committed bank facilities with $917 million in unused capacity.

 

--more--

 

2



 

Backlog

 

AECOM announced total backlog of $15.6 billion at Sept. 30, 2011, a 6% increase year over year.  Excluding backlog obtained through acquisitions, total backlog increased 3% year over year.  Foreign exchange rates negatively impacted backlog by $150 million during the fourth quarter.

 

Outlook

 

“AECOM continues to expand its presence in high-growth emerging and natural-resource-rich markets that now constitute over 40% of our net service revenue,” said Michael S. Burke, AECOM president.  “Overall, 59% of our net service revenue is derived from non-U.S. markets, providing us with confidence in our long-term outlook.”

 

Building upon the progress achieved in the fiscal fourth quarter of 2011, AECOM expects diluted earnings per share results for fiscal year 2012 to be in the range of $2.45 to $2.65.  The initial 2012 earnings guidance range includes the following key assumptions: 2012 tax rate of 29% (inclusive of non-controlling interest deduction), interest expense of $43 million, amortization of intangibles expense of $24 million, depreciation expense of $75 million, and full-year share count of 116 million.

 

The company will host a conference call at 10 a.m. Eastern Time, 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 1-866-543-6403 or 1-617-213-8896 and entering the passcode 70487053. 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 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 45,000 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 approximately 125 countries and had revenue of $8.0 billion during its fiscal year 2011.  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.

 

--more--

 

3



 

AECOM Technology Corporation

Condensed Consolidated Statement of Income

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

September 30,
2011

 

September 30,
2010

 

September 30,
2011

 

September 30,
2010

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

2,118,045

 

$

1,828,658

 

$

8,037,374

 

$

6,545,791

 

Other direct costs

 

758,571

 

699,735

 

2,856,598

 

2,340,014

 

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

 

1,359,474

 

1,128,923

 

5,180,776

 

4,205,777

 

Cost of revenue, net of other direct costs

 

1,207,634

 

1,004,589

 

4,702,627

 

3,775,506

 

Gross profit

 

151,840

 

124,334

 

478,149

 

430,271

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of joint ventures

 

13,144

 

7,217

 

44,819

 

20,987

 

General and administrative expenses

 

31,315

 

32,373

 

101,745

 

110,463

 

Income from operations

 

133,669

 

99,178

 

421,223

 

340,795

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

1,209

 

6,970

 

3,368

 

10,250

 

Interest income (expense), net

 

(10,073

)

(5,442

)

(40,411

)

(9,928

)

Income from continuing operations before income tax expense

 

124,805

 

100,706

 

384,180

 

341,117

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

36,389

 

31,518

 

100,090

 

91,696

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

88,416

 

69,188

 

284,090

 

249,421

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations, net of tax

 

 

 

 

(77

)

 

 

 

 

 

 

 

 

 

 

Net income

 

88,416

 

69,188

 

284,090

 

249,344

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest in income of consolidated subsidiaries, net of tax

 

(1,033

)

(1,414

)

(8,290

)

(12,457

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM

 

$

87,383

 

$

67,774

 

$

275,800

 

$

236,887

 

 

 

 

 

 

 

 

 

 

 

Net income allocation:

 

 

 

 

 

 

 

 

 

Preferred stock dividend

 

$

 

$

23

 

$

2

 

$

127

 

Net income available for common stockholders

 

87,383

 

67,751

 

275,798

 

236,760

 

Net income attributable to AECOM

 

$

87,383

 

$

67,774

 

$

275,800

 

$

236,887

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM per share:

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.75

 

$

0.58

 

$

2.35

 

$

2.07

 

Discontinued operations

 

 

 

 

 

 

 

$

0.75

 

$

0.58

 

$

2.35

 

$

2.07

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.75

 

$

0.58

 

$

2.33

 

$

2.05

 

Discontinued operations

 

 

 

 

 

 

 

$

0.75

 

$

0.58

 

$

2.33

 

$

2.05

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

116,366

 

115,881

 

117,396

 

114,344

 

Diluted

 

117,080

 

116,690

 

118,345

 

115,463

 

 

--more--

 

4



 

AECOM Technology Corporation

Balance Sheet and Cash Flow Information

(in thousands)

 

 

 

September 30, 2011

 

September 30, 2010

 

Balance Sheet Information:

 

 

 

 

 

Cash and cash equivalents

 

$

456,940

 

$

612,857

 

Accounts receivable – net

 

2,380,181

 

2,170,188

 

Working capital

 

1,172,586

 

1,094,239

 

Working capital, net of cash and cash equivalents

 

715,646

 

481,382

 

Total debt

 

1,162,469

 

931,127

 

Total assets

 

5,789,019

 

5,242,909

 

Total stockholders’ equity

 

2,339,711

 

2,090,012

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

September 30, 2011

 

September 30, 2010

 

Cash Flow Information:

 

 

 

 

 

Net cash provided by (used in) operating activities*

 

$

132,021

 

$

158,635

 


*                 September 30, 2011, amount includes deferred compensation plan termination ($90 million) and associated excess tax benefits ($58 million).

--more--

 

5



 

AECOM Technology Corporation

Reportable Segments

(in thousands)

 

 

 

 

Professional
Technical
Services

 

Management
Support
Services

 

Corporate

 

Total

 

Three Months Ended September 30, 2011

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,882,896

 

$

235,149

 

$

 

$

2,118,045

 

Other direct costs

 

670,049

 

88,522

 

 

758,571

 

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

 

1,212,847

 

146,627

 

 

1,359,474

 

Cost of revenue, net of other direct costs

 

1,071,251

 

136,383

 

 

1,207,634

 

Gross profit

 

141,596

 

10,244

 

 

151,840

 

Equity in earnings of joint ventures

 

4,943

 

8,201

 

 

13,144

 

General and administrative expenses

 

 

 

31,315

 

31,315

 

Income from operations

 

$

146,539

 

$

18,445

 

$

(31,315

)

$

133,669

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

7.5

%

4.4

%

 

7.2

%

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

 

11.7

%

7.0

%

 

11.2

%

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2010

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,534,539

 

$

294,119

 

$

 

$

1,828,658

 

Other direct costs

 

510,188

 

189,547

 

 

699,735

 

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

 

1,024,351

 

104,572

 

 

1,128,923

 

Cost of revenue, net of other direct costs

 

907,567

 

97,022

 

 

1,004,589

 

Gross profit

 

116,784

 

7,550

 

 

124,334

 

Equity in earnings of joint ventures

 

2,957

 

4,260

 

 

7,217

 

General and administrative expenses

 

 

 

32,373

 

32,373

 

Income from operations

 

$

119,741

 

$

11,810

 

$

(32,373

)

$

99,178

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

7.6

%

2.6

%

 

6.8

%

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

 

11.4

%

7.2

%

 

11.0

%

 

--more--

 

6



 

AECOM Technology Corporation

Reportable Segments

(in thousands)

 

 

 

Professional
Technical
Services

 

Management
Support
Services

 

Corporate

 

Total

 

Twelve Months Ended September 30, 2011

 

 

 

 

 

 

 

 

 

Revenue

 

$

6,877,131

 

$

1,160,243

 

$

 

$

8,037,374

 

Other direct costs

 

2,264,940

 

591,658

 

 

2,856,598

 

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

 

4,612,191

 

568,585

 

 

5,180,776

 

Cost of revenue, net of other direct costs

 

4,183,025

 

519,602

 

 

4,702,627

 

Gross profit

 

429,166

 

48,983

 

 

478,149

 

Equity in earnings of joint ventures

 

15,335

 

29,484

 

 

44,819

 

General and administrative expenses

 

 

 

101,745

 

101,745

 

Income from operations

 

$

444,501

 

$

78,467

 

$

(101,745

)

$

421,223

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

6.2

%

4.2

%

 

5.9

%

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

 

9.3

%

8.6

%

 

9.2

%

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

7,920,239

 

$

960,539

 

$

 

$

8,880,778

 

Awarded backlog

 

5,723,540

 

999,555

 

 

6,723,095

 

Total backlog

 

$

13,643,779

 

$

1,960,094

 

$

 

$

15,603,873

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended September 30, 2010

 

 

 

 

 

 

 

 

 

Revenue

 

$

5,393,729

 

$

1,152,062

 

$

 

$

6,545,791

 

Other direct costs

 

1,554,420

 

785,594

 

 

2,340,014

 

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

 

3,839,309

 

366,468

 

 

4,205,777

 

Cost of revenue, net of other direct costs

 

3,449,486

 

326,020

 

 

3,775,506

 

Gross profit

 

389,823

 

40,448

 

 

430,271

 

Equity in earnings of joint ventures

 

9,484

 

11,503

 

 

20,987

 

General and administrative expenses

 

 

 

110,463

 

110,463

 

Income from operations

 

$

399,307

 

$

51,951

 

$

(110,463

)

$

340,795

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

7.2

%

3.5

%

 

6.6

%

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

 

10.2

%

11.0

%

 

10.2

%

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

6,130,587

 

$

670,999

 

$

 

$

6,801,586

 

Awarded backlog

 

6,349,047

 

1,569,319

 

 

7,918,366

 

Total backlog

 

$

12,479,634

 

$

2,240,318

 

$

 

$

14,719,952

 

 

--more--

 

7



 

AECOM Technology Corporation

Regulation G Information

(in millions)

 

Reconciliation of Revenue to Revenue, Net of Other Direct Costs

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

September 30,
2011

 

September 30,
2010

 

September 30,
2011

 

September 30,
2010

 

Consolidated

 

 

 

 

 

 

 

 

 

Revenue

 

$

2,118.0

 

$

1,828.7

 

$

8,037.4

 

$

6,545.8

 

Less: Other direct costs

 

758.5

 

699.8

 

2,856.6

 

2,340.0

 

Revenue, net of other direct costs

 

$

1,359.5

 

$

1,128.9

 

$

5,180.8

 

$

4,205.8

 

 

 

 

 

 

 

 

 

 

 

PTS Segment

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,882.9

 

$

1,534.5

 

$

6,877.1

 

$

5,393.7

 

Less: Other direct costs

 

670.1

 

510.1

 

2,264.9

 

1,554.4

 

Revenue, net of other direct costs

 

$

1,212.8

 

$

1,024.4

 

$

4,612.2

 

$

3,839.3

 

 

 

 

 

 

 

 

 

 

 

MSS Segment

 

 

 

 

 

 

 

 

 

Revenue

 

$

235.1

 

$

294.2

 

$

1,160.3

 

$

1,152.1

 

Less: Other direct costs

 

88.4

 

189.7

 

591.7

 

785.6

 

Revenue, net of other direct costs

 

$

146.7

 

$

104.5

 

$

568.6

 

$

366.5

 

 

Reconciliation of EBITDA to Net Income Attributable to AECOM

 

 

 

Three Months Ended

 

 

 

Sep 30, 2011

 

Sep 30, 2010

 

 

 

 

 

 

 

EBITDA

 

$

157.8

 

$

125.8

 

Less: Interest (income) / expense*

 

8.9

 

5.3

 

Less: Depreciation and amortization

 

25.1

 

21.2

 

 

 

 

 

 

 

Income from continuing operations attributable to AECOM before income taxes

 

123.8

 

99.3

 

Less: Income tax expense

 

36.4

 

31.5

 

 

 

 

 

 

 

Income from continuing operations attributable to AECOM

 

87.4

 

67.8

 

Discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM

 

$

87.4

 

$

67.8

 

 

 

 

Fiscal Years Ended September 30,

 

 

 

2011

 

2010

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

525.4

 

$

417.5

 

$

358.5

 

$

284.5

 

Less: Interest (income) / expense*

 

39.2

 

9.9

 

10.7

 

(1.3

)

Less: Depreciation and amortization

 

110.3

 

78.9

 

84.1

 

62.8

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to AECOM before income taxes

 

375.9

 

328.7

 

263.7

 

223.0

 

Less: Income tax expense

 

100.1

 

91.7

 

77.0

 

76.5

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to AECOM

 

275.8

 

237.0

 

186.7

 

146.5

 

Discontinued operations, net of tax

 

 

(0.1

)

3.0

 

0.7

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM

 

$

275.8

 

$

236.9

 

$

189.7

 

$

147.2

 


* Excluding related amortization.

 

***

 

8