EX-99.1 2 a16-21559_1ex99d1.htm EX-99.1

Exhibit 99.1

 

For Immediate Release

 

 

Investor Contact:
Will Gabrielski
VP, Investor Relations
213.593.8208
William.Gabrielski@aecom.com

Media Contact:
Brendan Ranson-Walsh
VP, External Communications
212.739.7212
Brendan.Ranson-Walsh@aecom.com

 

AECOM reports fiscal fourth quarter and full year 2016 results

 

LOS ANGELES (November 14, 2016) — AECOM (NYSE: ACM), a premier, fully integrated global infrastructure firm, today reported fourth quarter revenue of $4.3 billion and full year revenue of $17.4 billion. Net income(1) and diluted earnings per share(1) were $7 million and $0.05 in the fourth quarter, respectively. Net income(1) and diluted earnings per share(1) were $96 million and $0.62 for the full year. On an adjusted basis, diluted earnings per share(2) was $0.65 for the fourth quarter and $3.00 for the full year.

 

 

 

Fourth Quarter

 

Full Year

 

($ in millions,
except EPS)

 

As Reported

 

Adjusted 
(Non-GAAP)

 

Adjusted YoY 
% Change

 

As Reported

 

Adjusted
(Non-GAAP)

 

Adjusted
YoY % Change

 

Revenue

 

$

4,323

 

—

 

(8

)%

$

17,411

 

—

 

(3

)%

Operating Income

 

$

69

 

$

187

(3)

(34

)%

$

376

 

$

894

(3)

(6

)%

Net Income

 

$

7

(1)

$

102

(2)

(31

)%

$

96

(1)

$

468

(2)

0

%

EPS (Fully Diluted)

 

$

0.05

(1)

$

0.65

(2)

(32

)%

$

0.62

(1)

$

3.00

(2)

(3

)%

Operating Cash Flow

 

$

363

 

—

 

31

%

$

814

 

—

 

7

%

Free Cash Flow(4)

 

—

 

$

326

 

22

%

—

 

$

677

 

(3

)%

Backlog

 

$

42,771

 

—

 

(1

)%

 

 

 

 

 

 

Wins

 

$

6,300

 

—

 

N/A

 

 

 

 

 

 

 

 

Note: All comparisons are year over year unless otherwise noted, and use adjusted or Non-GAAP figures where available.

 

·                  Achieved full year adjusted EPS(2) and free cash flow(4) guidance

·                  Have now paid down $1.2 billion of debt since closing the URS transaction two years ago

·                  Delivered second-consecutive year of double-digit growth in Building Construction

·                  Continued strong profitability in Management Services with nearly $25 billion of bids under client evaluation

·                  Record $6.3 billion of wins in the fourth quarter, reflecting the strength of our combined platform and growing client demand for design, build, finance, and operate services

 

Commenting on the results, Michael S. Burke, AECOM’s chairman and chief executive officer, said, “We achieved our EPS and free cash flow targets. However, our fiscal 2016 financial performance was negatively impacted by market challenges, including uneven client spending in our Americas Design business, continued market pressures from low oil and gas prices, and lower than anticipated earnings contributions from the sizable power and industrial construction wins in the second half of the year due to the timing.

 

“Importantly, we entered fiscal 2017 with strong momentum, and our confidence in the long-term trajectory of our business has never been greater. Our $6.3 billion of wins in the fourth quarter marked a new high, highlighted by the new NFL Rams stadium in Los Angeles and a 1.6 book-to-burn(5) in our Americas Design business. We have a growing pipeline of pursuits that leverage our design, build, finance, and operate capabilities, including $7 billion of combined pursuits led by our Construction Services business alone. And our Management Services segment is poised to deliver significant backlog growth with $25 billion of bids under client review, much of which are in the mission critical and intelligence sector. These successes reflect the progress we have made to position our industry-leading capabilities to win larger, more complex projects in new markets.”

 

Stephen M. Kadenacy, AECOM’s president and chief operating officer, added, “We have integrated two large organizations and now have the industry’s best people, systems, and capabilities focused on growth. We are focused on driving collaboration across the company to meet our clients’ growing demands for integrated delivery.”

 

—more—

 


 

2-2-2

 

Wins and Backlog

 

Wins in the quarter of $6.3 billion resulted in a book-to-burn ratio(5) of 1.4. Wins were driven by broad success in the Americas Design market, the selection to build the NFL Rams stadium in Los Angeles, and over $700 million of O&M wins with core oil and gas clients. Total backlog increased 4% from the third quarter to $42.8 billion. Backlog now includes the proportionate contract value of projects accounted for under the equity method.

 

Business Performance

 

In addition to providing consolidated financial results, AECOM reports separate financial information for its three segments: Design & Consulting Services, Construction Services and Management Services.

 

Design & Consulting Services (DCS)

 

The DCS segment delivers planning, consulting, architectural and engineering design services to commercial and government clients worldwide in markets such as transportation, facilities, environmental, energy, water and government.

 

Revenue in the fourth quarter was $1.9 billion. Constant-currency organic(6) revenue declined 3.7% due primarily to a decline in the Americas partially offset by continued growth in the U.K. Full year revenue was $7.7 billion, and constant-currency organic(6) revenue declined 1.3%. Adjusted operating income(3) was $102 million and $514 million in the fourth quarter and full year, respectively.

 

Construction Services (CS)

 

The CS segment provides construction services for energy, sports, commercial, industrial, and public and private infrastructure clients.

 

Revenue in the fourth quarter was $1.6 billion. Full year revenue was $6.5 billion, a decline of 3.0%, with nearly 20% growth in the Building Construction business offset by weakness in the oil and gas market. Adjusted operating income(3) was $23 million and $97 million in the fourth quarter and full year, respectively.

 

Management Services (MS)

 

The MS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance and systems-integration services and information technology services, primarily for agencies of the U.S. government, national governments around the world and commercial customers.

 

Revenue in the fourth quarter and full year was $857 million and $3.3 billion, respectively. Adjusted operating income(7) was $90 million and $399 million in the fourth quarter and full year, respectively. Fourth quarter operating income benefitted from resolutions of project and legal matters. The impact to adjusted EPS was $0.07. In addition, fourth quarter operating income benefitted from a $27 million project performance incentive award.

 

Tax Rate

 

The effective tax rate(8) for adjusted earnings was 19.0% and 21.0% for the fourth quarter and full year, respectively. The tax rate was lower than anticipated in the fourth quarter due primarily to the jurisdictional mix of income. The full year tax rate was lower than anticipated due primarily to the benefit from the reversal of a deferred tax asset valuation allowance in the third quarter. Our adjusted tax rate was derived by re-computing the annual effective tax rate on earnings from adjusted net income (loss).(8) The adjusted tax expense differs from the GAAP tax expense based on the deductibility and tax rate applied to each of the adjustments.

 

—more—

 


 

3-3-3

 

Cash Flow

 

Free cash flow(4) for the fourth quarter was $326 million. For the full year, AECOM generated free cash flow of $677 million, which was within the Company’s guidance of $600 million to $800 million.

 

Balance Sheet

 

As of September 30th, 2016, AECOM had $692.1 million of total cash and cash equivalents, $3.4 billion of net debt and $888.4 million in unused capacity under its $1.05 billion revolving credit facility. Total debt has declined by $1.2 billion since closing the URS acquisition in October, 2014.

 

Financial Outlook

 

AECOM is initiating fiscal year 2017 adjusted EPS(2) guidance of $2.70 to $3.10, which includes approximately $0.20 of anticipated gains related to AECOM Capital realizations.

 

The Company expects fiscal 2017 full year interest expense, excluding amortization of deferred financing fees, of approximately $190 million and a full-year share count of 159 million.

 

The Company expects an effective tax rate(8) for adjusted earnings of approximately 20%, which is similar to fiscal 2016.

 

The Company expects $30 million of acquisition and integration expenses during the fiscal year.

 

Fiscal year 2017 capital expenditures(9) are expected to be approximately $115 million. The Company expects depreciation expense of approximately $165 million and the amortization of intangible assets(10) to be approximately $95 million.

 

Kadenacy Named President and Chief Operating Officer

 

Stephen M. Kadenacy, in addition to his existing operational duties as president, has been given the added title of chief operating officer. Mr. Kadenacy will continue to be responsible for AECOM’s global operations, and oversee strategy and mergers and acquisitions.

 

Conference Call

 

AECOM is hosting a conference call today at 12 p.m. EDT, 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 at www.aecom.com. The webcast will be available for replay following the call.

 

(1) Defined as attributable to AECOM.

(2) Defined as attributable to AECOM, excluding acquisition and integration related expenses, financing charges in interest expense, the amortization of intangible assets, and financial impacts associated with expected and actual dispositions of non-core businesses and assets.

(3) Excluding intangible amortization and financial impacts associated with expected and actual dispositions of non-core businesses and assets.

(4) Free cash flow is defined as cash flow from operations less capital expenditures net of proceeds from disposals, and is a non-GAAP measure.

(5) Book-to-burn ratio is defined as the amount of wins divided by revenue recognized during the period, including revenue related to work performed in unconsolidated joint ventures.

(6) Organic growth is at constant currency and excludes revenue associated with actual and planned non-core asset and business dispositions. Results expressed in constant currency are presented excluding the impact from changes in currency exchange rates.

(7) Excluding intangible amortization.

(8) Inclusive of non-controlling interest deduction and adjusted for acquisition and integration expenses, financing charges in interest expense, the amortization of intangible assets and financial impacts associated with actual and planned dispositions of non-core businesses and assets.

(9) Capital expenditures, net of proceeds from disposals.

(10) Amortization of intangible assets expense includes the impact of amortization included in equity in earnings of joint ventures and non-controlling interests.

 

—more—

 


 

4-4-4

 

About AECOM

 

AECOM (NYSE: ACM) is built to deliver a better world. We design, build, finance and operate infrastructure assets for governments, businesses and organizations in more than 150 countries. As a fully integrated firm, we connect knowledge and experience across our global network of experts to help clients solve their most complex challenges. From high-performance buildings and infrastructure, to resilient communities and environments, to stable and secure nations, our work is transformative, differentiated and vital. A Fortune 500 firm, AECOM companies had revenue of approximately $17.4 billion during the 12 months ended September 30, 2016. See how we deliver what others can only imagine at aecom.com and @AECOM.

 

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, revenue, cash flows, tax rate, share count, interest expense, amortization of intangible assets, AECOM Capital contribution gains, acquisition and integration costs, 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 our forward-looking statements include, but are not limited to, the following:  demand for our services is cyclical; uncertainties related to government contract appropriations; Budget Control Act of 2011; governmental agencies may modify, curtail or terminate our contracts; government contracts are subject to audits and adjustments of contractual terms; Brexit; 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 applicable to our business; our leveraged position and ability to service our debt; ability to maintain surety and financial capacity; exposure to legal, political and economic risks in different countries as well as currency exchange rate fluctuations; the failure to retain and recruit key technical and management personnel; our insurance policies may not provide adequate coverage; unexpected adjustments and cancellations related to our backlog; dependence on third party contractors who fail to satisfy their obligations; systems and information technology interruption; and changing client preferences/demands, fiscal positions and payment patterns. 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.

 

This press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”). In particular, the Company believes that non-GAAP financial measures such as adjusted EPS, adjusted operating income, adjusted tax rate, organic revenue, and free cash flow also provide a meaningful perspective on its business results as the Company utilizes this information to evaluate and manage the business. We use adjusted net and operating income to exclude the impact of prior acquisitions. We use free cash flow to represent the cash generated after capital expenditures to maintain our business. 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 tables at the back of this release.

 

—more—

 


 

5-5-5

 

AECOM

 

Consolidated Statements of Income

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

Sep 30,
2015

 

Sep 30,
2016

 

%
Change

 

Sep 30,
2015

 

Sep 30,
2016

 

%
Change

 

Revenue

 

$

4,723,637

 

$

4,323,096

 

(8.5

)%

$

17,989,880

 

$

17,410,825

 

(3.2

)%

Cost of revenue

 

4,553,009

 

4,175,917

 

(8.3

)%

17,454,692

 

16,768,001

 

(3.9

)%

Gross profit

 

170,628

 

147,179

 

(13.7

)%

535,188

 

642,824

 

20.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of joint ventures

 

29,917

 

21,240

 

(29.0

)%

106,245

 

104,032

 

(2.1

)%

General and administrative expenses

 

(25,422

)

(28,131

)

10.7

%

(113,975

)

(115,088

)

1.0

%

Acquisition and integration expenses

 

(79,883

)

(71,215

)

(10.9

)%

(398,440

)

(213,642

)

(46.4

)%

Loss on disposal activities

 

—

 

—

 

0.0

%

—

 

(42,589

)

0.0

%

Income from operations

 

95,240

 

69,073

 

(27.5

)%

129,018

 

375,537

 

191.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

7,470

 

2,894

 

(61.3

)%

19,139

 

8,180

 

(57.3

)%

Interest expense

 

(60,046

)

(73,405

)

22.2

%

(299,627

)

(258,162

)

(13.8

)%

Income (loss) before income tax expense

 

42,664

 

(1,438

)

(103.4

)%

(151,470

)

125,555

 

(182.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

16,187

 

(14,325

)

(188.5

)%

(80,237

)

(37,917

)

(52.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

26,477

 

12,887

 

(51.3

)%

(71,233

)

163,472

 

(329.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests in income of consolidated subsidiaries, net of tax

 

(25,421

)

(5,683

)

(77.6

)%

(83,612

)

(67,363

)

(19.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to AECOM

 

$

1,056

 

$

7,204

 

582.2

%

$

(154,845

)

$

96,109

 

(162.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to AECOM per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

0.05

 

400.0

%

$

(1.04

)

$

0.62

 

(159.6

)%

Diluted

 

$

0.01

 

$

0.05

 

400.0

%

$

(1.04

)

$

0.62

 

(159.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

153,779

 

156,320

 

1.7

%

149,605

 

154,772

 

3.5

%

Diluted

 

155,231

 

157,856

 

1.7

%

149,605

 

156,073

 

4.3

%

 

Balance Sheet Information

(in thousands)

 

 

 

September 30,
2015

 

September 30,
2016

 

Balance Sheet Information:

 

 

 

 

 

Total cash and cash equivalents

 

$

683,893

 

$

692,145

 

Accounts receivable — net

 

4,841,450

 

4,531,460

 

Working capital

 

1,410,033

 

696,015

 

Total debt

 

4,606,938

 

4,125,290

 

Total assets

 

14,014,298

 

13,726,745

 

Total AECOM stockholders’ equity

 

3,407,748

 

3,366,921

 

 

—more—

 


 

6-6-6

 

AECOM

Reportable Segments

(in thousands)

 

 

 

Design &
Consulting
Services

 

Construction
Services

 

Management
Services

 

Corporate

 

Total

 

Three Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,906,978

 

$

1,559,558

 

$

856,560

 

$

—

 

$

4,323,096

 

Cost of revenue

 

1,823,963

 

1,556,235

 

795,719

 

—

 

4,175,917

 

Gross profit

 

83,015

 

3,323

 

60,841

 

—

 

147,179

 

Equity in earnings of joint ventures

 

2,657

 

9,256

 

9,327

 

—

 

21,240

 

General and administrative expenses

 

—

 

—

 

—

 

(28,131

)

(28,131

)

Acquisition and integration expenses

 

—

 

—

 

—

 

(71,215

)

(71,215

)

Income (loss) from operations

 

$

85,672

 

$

12,579

 

$

70,168

 

$

(99,346

)

$

69,073

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

4.4

%

0.2

%

7.1

%

—

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

2,041,749

 

$

1,797,115

 

$

884,773

 

$

—

 

$

4,723,637

 

Cost of revenue

 

1,942,894

 

1,781,734

 

828,381

 

—

 

4,553,009

 

Gross profit

 

98,855

 

15,381

 

56,392

 

—

 

170,628

 

Equity in earnings of joint ventures

 

3,532

 

5,967

 

20,418

 

—

 

29,917

 

General and administrative expenses

 

—

 

—

 

—

 

(25,422

)

(25,422

)

Acquisition and integration expenses

 

—

 

—

 

—

 

(79,883

)

(79,883

)

Income (loss) from operations

 

$

102,387

 

$

21,348

 

$

76,810

 

$

(105,305

)

$

95,240

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

4.8

%

0.9

%

6.4

%

—

 

3.6

%

 

—more—

 


 

7-7-7

 

AECOM

Reportable Segments

(in thousands)

 

 

 

Design &
Consulting
Services

 

Construction
Services

 

Management
Services

 

Corporate

 

Total

 

Twelve Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

7,655,803

 

$

6,501,319

 

$

3,253,703

 

$

—

 

$

17,410,825

 

Cost of revenue

 

7,273,291

 

6,470,221

 

3,024,489

 

—

 

16,768,001

 

Gross profit

 

382,512

 

31,098

 

229,214

 

—

 

642,824

 

Equity in earnings of joint ventures

 

8,859

 

18,162

 

77,011

 

—

 

104,032

 

General and administrative expenses

 

—

 

—

 

—

 

(115,088

)

(115,088

)

Acquisition and integration expenses

 

—

 

—

 

—

 

(213,642

)

(213,642

)

Loss on disposal activities

 

—

 

(42,589

)

—

 

—

 

(42,589

)

Income (loss) from operations

 

$

391,371

 

$

6,671

 

$

306,225

 

$

(328,730

)

$

375,537

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

5.0

%

0.5

%

7.0

%

—

 

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

8,035,454

 

$

11,962,511

 

$

3,711,723

 

$

—

 

$

23,709,688

 

Awarded backlog

 

6,328,531

 

5,132,931

 

3,945,313

 

—

 

15,406,775

 

Unconsolidated JV backlog

 

—

 

2,612,668

 

1,042,070

 

—

 

3,654,738

 

Total backlog

 

$

14,363,985

 

$

19,708,110

 

$

8,699,106

 

$

—

 

$

42,771,201

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

7,962,856

 

$

6,676,741

 

$

3,350,283

 

$

—

 

$

17,989,880

 

Cost of revenue

 

7,663,565

 

6,633,907

 

3,157,220

 

—

 

17,454,692

 

Gross profit

 

299,291

 

42,834

 

193,063

 

—

 

535,188

 

Equity in earnings of joint ventures

 

6,626

 

22,950

 

76,669

 

—

 

106,245

 

General and administrative expenses

 

—

 

—

 

—

 

(113,975

)

(113,975

)

Acquisition and integration expenses

 

—

 

—

 

—

 

(398,440

)

(398,440

)

Income (loss) from operations

 

$

305,917

 

$

65,784

 

$

269,732

 

$

(512,415

)

$

129,018

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

3.8

%

0.6

%

5.8

%

—

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

8,573,471

 

$

11,190,214

 

$

4,703,981

 

$

—

 

$

24,467,666

 

Awarded backlog

 

5,732,258

 

5,559,937

 

4,439,463

 

—

 

15,731,658

 

Unconsolidated JV backlog

 

 

 

933,479

 

1,995,993

 

—

 

2,929,472

 

Total backlog

 

$

14,305,729

 

$

17,683,630

 

$

11,139,437

 

$

—

 

$

43,128,796

 

 

—more—

 


 

8-8-8

 

AECOM

Regulation G Information

($ in millions)

 

Reconciliation of Amounts Provided by Acquired Companies

 

 

 

Three Months Ended
September 30, 2016

 

Twelve Months Ended
September 30, 2016

 

 

 

Total

 

Provided by 
Acquired 
Companies

 

Excluding 
Effect of 
Acquired 
Companies

 

Total

 

Provided by 
Acquired 
Companies

 

Excluding 
Effect of 
Acquired 
Companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

AECOM Consolidated

 

$

4,323.1

 

$

—

 

$

4,323.1

 

$

17,410.8

 

$

302.0

 

$

17,108.8

 

Design & Consulting Services

 

1,907.0

 

—

 

1,907.0

 

7,655.8

 

119.2

 

7,536.6

 

Construction Services

 

1,559.6

 

—

 

1,559.6

 

6,501.3

 

90.8

 

6,410.5

 

Management Services

 

856.5

 

—

 

856.5

 

3,253.7

 

92.0

 

3,161.7

 

 

Reconciliation of Net Income Attributable to AECOM to EBITDA

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

Sep 30, 
2015

 

Jun 30
2016

 

Sep 30,
2016

 

Sep 30,
2015

 

Sep 30,
2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to AECOM

 

$

1.1

 

$

67.4

 

$

7.2

 

$

(154.8

)

$

96.1

 

Income tax expense (benefit)

 

16.2

 

(35.1

)

(14.3

)

(80.2

)

(37.9

)

Income (loss) attributable to AECOM before income taxes

 

17.3

 

32.3

 

(7.1

)

(235.0

)

58.2

 

Depreciation and amortization expense(1)

 

151.3

 

98.3

 

92.1

 

607.0

 

414.5

 

Interest income(2)

 

(1.0

)

(1.2

)

(1.3

)

(4.8

)

(4.3

)

Interest expense(3)

 

54.2

 

57.1

 

55.4

 

282.5

 

225.8

 

EBITDA

 

$

221.8

 

$

186.5

 

$

139.1

 

$

649.7

 

$

694.2

 

 

(1) Includes the amount for noncontrolling interests in consolidated subsidiaries

(2) Included in other income

(3) Excludes related amortization

 

Reconciliation of Total Debt to Net Debt

 

 

 

Balances at:

 

 

 

Sep 30, 2015

 

Jun 30, 2016

 

Sep 30, 2016

 

Short-term debt

 

$

2.8

 

$

20.8

 

$

26.3

 

Current portion of long-term debt

 

157.6

 

333.3

 

340.0

 

Long-term debt

 

4,446.5

 

3,941.1

 

3,759.0

 

Total debt

 

4,606.9

 

4,295.2

 

4,125.3

 

Less: Total cash and cash equivalents

 

683.9

 

628.0

 

692.1

 

Net debt

 

$

3,923.0

 

$

3,667.2

 

$

3,433.2

 

 

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

 

 

 

Three Months Ended

 

 

 

Dec 31, 
2014

 

Mar 31, 
2015

 

Jun 30, 
2015

 

Sep 30,
2015

 

Dec 31, 
2015

 

Mar 31, 
2016

 

Jun 30,
2016

 

Sep 30,
2016

 

Net cash provided by operating activities

 

$

282.6

 

$

50.0

 

$

153.8

 

$

278.0

 

$

78.0

 

$

113.2

 

$

260.1

 

$

362.9

 

Capital expenditures, net of disposals

 

(25.0

)

(30.6

)

(3.7

)

(10.1

)

(0.8

)

(30.3

)

(68.8

)

(36.9

)

Free cash flow

 

$

257.6

 

$

19.4

 

$

150.1

 

$

267.9

 

$

77.2

 

$

82.9

 

$

191.3

 

$

326.0

 

 

 

 

Fiscal Years Ended Sep 30,

 

 

 

2014

 

2015

 

2016

 

Net cash provided by operating activities

 

$

360.6

 

$

764.4

 

$

814.2

 

Capital expenditures, net

 

(62.8

)

(69.4

)

(136.8

)

Free cash flow

 

$

297.8

 

$

695.0

 

$

677.4

 

 

—more—

 


 

9-9-9

 

AECOM

Regulation G Information

(in millions, except per share data)

 

Reconciliation of Reported Amounts to Adjusted Amounts Excluding Acquisition and Integration Related Expenses, Financing Charges in Interest Expense, the Amortization of Intangible Assets and the Financial Impacts Associated with Dispositions of Non-Core Businesses and Assets

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

Sep 30,
2015

 

Jun 30,
2016

 

Sep 30,
2016

 

Sep 30,
2015

 

Sep 30,
2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

95.2

 

$

110.4

 

$

69.0

 

$

129.0

 

$

375.5

 

Non-core operating losses

 

—

 

14.4

 

9.9

 

—

 

36.9

 

Acquisition and integration expenses

 

79.9

 

50.6

 

71.3

 

398.5

 

213.7

 

Loss on disposal activities

 

—

 

—

 

—

 

—

 

42.6

 

Amortization of intangible assets

 

108.3

 

43.8

 

36.6

 

428.3

 

225.4

 

Adjusted income from operations

 

$

283.4

 

$

219.2

 

$

186.8

 

$

955.8

 

$

894.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expense

 

$

42.7

 

$

49.3

 

$

(1.4

)

$

(151.5

)

$

125.6

 

Non-core operating losses

 

—

 

14.4

 

9.9

 

—

 

36.9

 

Acquisition and integration expenses

 

79.9

 

50.7

 

71.2

 

398.5

 

213.6

 

Loss on disposal activities

 

—

 

—

 

—

 

—

 

42.6

 

Amortization of intangible assets

 

108.3

 

43.8

 

36.6

 

428.3

 

225.4

 

Financing charges in interest expense

 

3.9

 

5.1

 

17.6

 

79.8

 

30.9

 

Adjusted income before income tax expense

 

$

234.8

 

$

163.3

 

$

133.9

 

$

755.1

 

$

675.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

$

16.3

 

$

(35.1

)

$

(14.3

)

$

(80.2

)

$

(37.9

)

Tax effect of the above adjustments…

 

34.2

 

53.1

 

38.3

 

256.1

 

162.4

 

Adjusted income tax expense

 

$

50.5

 

$

18.0

 

$

24.0

 

$

175.9

 

$

124.5

 

 

… Adjusts the income tax expense (benefit) during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above.

 

Noncontrolling interests in income of consolidated subsidiaries, net of tax

 

$

(25.4

)

$

(17.0

)

$

(5.7

)

$

(83.6

)

$

(67.4

)

Amortization of intangible assets included in NCI, net of tax

 

(11.0

)

(2.2

)

(2.3

)

(29.6

)

(15.0

)

Adjusted noncontrolling interests in income of consolidated subsidiaries, net of tax

 

$

(36.4

)

$

(19.2

)

$

(8.0

)

$

(113.2

)

$

(82.4

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to AECOM

 

$

1.1

 

$

67.4

 

$

7.2

 

$

(154.8

)

$

96.1

 

Non-core operating losses

 

—

 

14.4

 

9.9

 

—

 

36.9

 

Acquisition and integration expenses

 

79.9

 

50.7

 

71.2

 

398.5

 

213.6

 

Amortization of intangible assets

 

108.3

 

43.8

 

36.6

 

428.3

 

225.4

 

Loss on disposal activities

 

—

 

—

 

—

 

—

 

42.6

 

Financing charges in interest expense

 

3.9

 

5.1

 

17.6

 

79.8

 

30.9

 

Tax effect of the above adjustments

 

(34.3

)

(53.1

)

(38.2

)

(256.2

)

(162.3

)

Amortization of intangible assets included in NCI, net of tax

 

(11.0

)

(2.2

)

(2.3

)

(29.6

)

(15.0

)

Adjusted net income attributable to AECOM

 

$

147.9

 

$

126.1

 

$

102.0

 

$

466.0

 

$

468.2

 

 

—more—

 


 

10-10-10

 

AECOM

Regulation G Information

(in millions, except per share data)

 

Reconciliation of Reported Amounts to Adjusted Amounts Excluding Acquisition and Integration Related Expenses, Financing Charges in Interest Expense, the Amortization of Intangible Assets and the Financial Impacts Associated with Dispositions of Non-Core Businesses and Assets

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

Sep 30,
2015

 

Jun 30,
2016

 

Sep 30,
2016

 

Sep 30,
2015

 

Sep 30,
2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to AECOM — per diluted share*

 

$

0.01

 

$

0.43

 

$

0.05

 

$

(1.04

)

$

0.62

 

Per diluted share adjustments:

 

 

 

 

 

 

 

 

 

 

 

Non-core operating losses

 

—

 

0.09

 

0.06

 

—

 

0.24

 

Acquisition and integration expenses

 

0.51

 

0.32

 

0.45

 

2.63

 

1.37

 

Amortization of intangible assets

 

0.70

 

0.28

 

0.23

 

2.83

 

1.44

 

Loss on disposal activities

 

—

 

—

 

—

 

—

 

0.27

 

Financing charges in interest expense

 

0.03

 

0.03

 

0.11

 

0.54

 

0.20

 

Tax effect of the above adjustments

 

(0.23

)

(0.33

)

(0.24

)

(1.68

)

(1.04

)

Amortization of intangible assets included in NCI, net of tax

 

(0.07

)

(0.01

)

(0.01

)

(0.20

)

(0.10

)

Adjusted net income attributable to AECOM — per diluted share*

 

$

0.95

 

$

0.81

 

$

0.65

 

$

3.08

 

$

3.00

 

Weighted average shares outstanding — diluted

 

155.2

 

156.2

 

157.9

 

151.3

 

156.1

 

 

*When there is a net loss, basic and dilutive GAAP EPS calculations use the same share count to avoid any antidilutive effect; however, the adjusted EPS includes the dilutive shares excluded in the GAAP EPS.

 

EBITDA(1)

 

$

221.8

 

$

186.5

 

$

139.1

 

$

649.7

 

$

694.2

 

Non-core operating losses

 

—

 

14.4

 

9.9

 

—

 

36.9

 

Acquisition and integration expenses

 

79.8

 

50.7

 

71.2

 

398.4

 

213.6

 

Loss on disposal activities

 

—

 

—

 

—

 

—

 

42.6

 

Depreciation expense included in acquisition and integration expense line above

 

(6.6

)

(7.7

)

(9.0

)

(20.9

)

(28.8

)

Adjusted EBITDA

 

$

295.0

 

$

243.9

 

$

211.2

 

$

1,027.2

 

$

958.5

 

Other expense

 

(7.5

)

(1.5

)

(2.9

)

(19.2

)

(8.2

)

Interest expense(2)

 

1.0

 

1.2

 

1.3

 

4.8

 

4.3

 

Depreciation(3)

 

(37.2

)

(43.6

)

(30.7

)

(170.3

)

(142.9

)

Noncontrolling interests in income of consolidated subsidiaries, net of tax

 

25.4

 

16.9

 

5.7

 

83.6

 

67.4

 

Amortization of intangible assets included in NCI, net of tax

 

6.7

 

2.3

 

2.2

 

29.7

 

15.0

 

Adjusted income from operations

 

$

283.4

 

$

219.2

 

$

186.8

 

$

955.8

 

$

894.1

 

 

(1) See Reconciliation of Net Income Attributable to AECOM to EBITDA

(2) Included in other income

(3) Excluding acquisition and integration related expense

 

—more—

 


 

11-11-11

 

AECOM

Regulation G Information

(in millions, except per share data)

 

Reconciliation of Segment Reported Amounts to Adjusted Amounts Excluding Acquisition and Integration Related Expenses, Financing Charges in Interest Expense, the Amortization of Intangible Assets and the Financial Impacts Associated with Dispositions of Non-Core Businesses and Assets

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

Sep 30,
2015

 

Jun 30,
2016

 

Sep 30,
2016

 

Sep 30,
2015

 

Sep 30,
2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income from Operations

 

 

 

 

 

 

 

 

 

 

 

Design & Consulting Services Segment:

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

102.4

 

$

124.0

 

$

85.7

 

$

305.9

 

$

391.4

 

Non-core operating losses

 

—

 

14.4

 

9.9

 

—

 

31.7

 

Amortization of intangible assets

 

50.3

 

11.5

 

6.9

 

197.7

 

90.9

 

Adjusted income from operations

 

$

152.7

 

$

149.9

 

$

102.5

 

$

503.6

 

$

514.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction Services Segment:

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

21.4

 

$

12.6

 

$

12.6

 

$

65.8

 

$

6.7

 

Non-core operating losses

 

—

 

—

 

—

 

—

 

5.2

 

Loss on disposal activities

 

—

 

—

 

—

 

—

 

42.6

 

Amortization of intangible assets

 

20.4

 

10.6

 

10.0

 

86.1

 

42.1

 

Adjusted income from operations

 

$

41.8

 

$

23.2

 

$

22.6

 

$

151.9

 

$

96.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Management Services Segment:

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

76.7

 

$

53.3

 

$

70.1

 

$

269.7

 

$

306.2

 

Amortization of intangible assets

 

37.6

 

21.7

 

19.7

 

144.5

 

92.4

 

Adjusted income from operations

 

$

114.3

 

$

75.0

 

$

89.8

 

$

414.2

 

$

398.6

 

 

FY17 GAAP EPS Guidance based on Adjusted EPS Guidance

 

 

 

Fiscal Year End 2017

 

 

 

 

 

Implied GAAP EPS Guidance

 

$   2.06 to $  2.46

 

Adjusted EPS Excludes:

 

 

 

Amortization of intangible assets

 

$ 0.60

 

Acquisition and integration-related expenses

 

$ 0.19

 

Financing charges in interest expense

 

$ 0.09

 

Tax effect of the above items*

 

$ (0.24)

 

Adjusted EPS Guidance (Non-GAAP)

 

$   2.70 to $  3.10

 

 

*The adjusted tax expense differs from the GAAP tax expense based on the deductibility and tax rate applied to each of the adjustments.

 

***