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Exhibit 99.1

 

GRAPHIC

 

 

 

 

 

 

 

Contact: 

For Immediate Release

 

NR 11-0801

 

 

 

 

Paul Gennaro
SVP & Chief Communications Officer
212.973.3167
Paul.Gennaro@aecom.com

 

 

 

 

AECOM reports 62 cents EPS, backlog of $16.0 billion for third quarter of fiscal year 2011

 

·                  Diluted earnings per share for the third quarter increased 11% year over year to 62 cents.

 

·                  Net income from continuing operations for the third quarter increased 14% year over year to $74 million.

 

·                  Operating income for the third quarter increased 19% year over year to $110 million.

 

·                  Revenue, net of other direct costs, for the third quarter increased 24% year over year to $1.3 billion.

 

·                  Revenue for the third quarter increased 25% year over year to $2.0 billion.

 

·                  Backlog at June 30, 2011, increased 66% year over year to $16.0 billion.

 

LOS ANGELES (Aug. 4, 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 third quarter of fiscal year 2011, which ended June 30, 2011.

 

AECOM reported net income from continuing operations of $74 million for the third quarter, or diluted earnings per share (EPS) of 62 cents.  These results represent an increase of 14% over net income of $65 million — and an increase of 11% over diluted EPS of 56 cents — for the same period last year.  Operating income for the third quarter increased to $110 million, 19% higher than the same period last year.

 

AECOM’s third-quarter revenue, net of other direct costs, increased to $1.3 billion, 24% higher than the same period last year.  Organic revenue, net of other direct costs, increased 4% year over year. Third-quarter gross revenue increased to $2.0 billion, 25% higher than the third quarter of fiscal year 2010.

 

For year-to-date fiscal year 2011, AECOM reported net income from continuing operations of $188 million and operating income of $288 million, an increase of 11% and 19%, respectively, compared to the same period last year.  For year-to-date fiscal year 2011, AECOM reported revenue, net of other direct costs, of $3.8 billion and revenue of $5.9 billion, an increase of 24% and 25%, respectively, compared to the same period last year.

 

“We had a solid third quarter, posting 11% earnings growth, driven by gains in organic and acquisitive net service revenue,” said John M. Dionisio, AECOM president and chief executive officer. “We also recorded $2.7 billion in new wins, up from $2.2 billion in the second quarter, and organic backlog increased 18% year over year, the largest increase in over two years.

 

“Organic growth in the third quarter was led by strong results in Australia, Asia, and the Middle East.  AECOM’s expanding presence in these high-growth markets, in combination with our integrated platform, position us to capitalize on the full scope of infrastructure opportunities around the world.”

 

—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 2011, the PTS segment reported revenue of $1.8 billion and operating income of $115 million, compared to revenue of $1.3 billion and operating income of $108 million for the same period during fiscal year 2010.  This represents a 33% increase in revenue and a 6% increase in operating income year over year.  PTS revenue, net of other direct costs, increased 21% year over year to $1.2 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 2011, the MSS segment reported gross revenue of $274 million and revenue, net of other direct costs, of $144 million, compared to revenue of $297 million, and revenue, net of other direct costs, of $98 million for the same period during fiscal year 2010.  This represents an 8% decrease in revenue contrasted by a 48% 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 $19 million compared to $13 million for the same period during fiscal year 2010, which represents a 48% year-over-year increase.

 

Backlog

 

AECOM announced backlog totaling $16.0 billion at June 30, 2011, a 66% increase year over year.  Organically, backlog increased by 18% year over year.

 

Balance Sheet

 

At June 30, 2011, the company had $381 million of total cash and cash equivalents, $1.2 billion of debt and $600 million in committed bank facilities with $293 million in unused capacity.  Subsequent to the close of the quarter, the company announced a new 5-year revolving credit facility agreement with total borrowing capacity of $1.05 billion.

 

“We are pleased to have closed our new revolving credit facility, which substantially increases our borrowing capacity on more favorable terms,” said Michael S. Burke, AECOM executive vice president and chief financial officer.  “We believe this demonstrates the credit market’s confidence in our financial strength and provides us with increased financial flexibility to execute on our growth strategy.”

 

Outlook

 

“Improvements in organic growth and a significant increase in new wins and backlog during the third quarter give us confidence in our long-term earnings growth target of 15%,” Burke said.  “However, continued challenges in our Western European business have led us to evaluate actions to reduce our cost structure, which may negatively impact our earnings by approximately $0.05 in the fourth quarter.”   As a result, AECOM’s EPS outlook for fiscal year 2011 is $2.30-$2.35.

 

—more—

 

2



 

AECOM is hosting a conference call today at 11 a.m. EDT, 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 1-866-271-6130 or 1-617-213-8894 and entering the passcode 36315172.

 

 

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 $7.7 billion during the 12 months ended June 30, 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

 

Nine Months Ended

 

 

 

June 30, 2011

 

June 30, 2010

 

June 30, 2011

 

June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

2,046,725

 

$

1,635,183

 

$

5,919,329

 

$

4,717,133

 

Other direct costs

 

732,599

 

572,519

 

2,098,027

 

1,640,279

 

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

 

1,314,126

 

1,062,664

 

3,821,302

 

3,076,854

 

Cost of revenue, net of other direct costs

 

1,192,887

 

947,599

 

3,494,993

 

2,770,917

 

Gross profit

 

121,239

 

115,065

 

326,309

 

305,937

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of joint ventures

 

12,248

 

5,941

 

31,675

 

13,770

 

General and administrative expenses

 

23,560

 

28,327

 

70,430

 

78,090

 

Income from operations

 

109,927

 

92,679

 

287,554

 

241,617

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

(1,585

)

(253

)

2,159

 

3,280

 

Interest expense, net

 

(10,452

)

(1,126

)

(30,338

)

(4,486

)

Income from continuing operations before income tax expense

 

97,890

 

91,300

 

259,375

 

240,411

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

23,959

 

22,665

 

63,701

 

60,178

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

73,931

 

68,635

 

195,674

 

180,233

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations, net of tax

 

 

 

 

(77

)

 

 

 

 

 

 

 

 

 

 

Net income

 

73,931

 

68,635

 

195,674

 

180,156

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest in income of consolidated subsidiaries, net of tax

 

(97

)

(3,793

)

(7,257

)

(11,043

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM

 

$

73,834

 

$

64,842

 

$

188,417

 

$

169,113

 

 

 

 

 

 

 

 

 

 

 

Net income allocation:

 

 

 

 

 

 

 

 

 

Preferred stock dividend

 

$

 

$

34

 

$

2

 

$

104

 

Net income available for common stockholders

 

73,834

 

64,808

 

188,415

 

169,009

 

Net income attributable to AECOM

 

$

73,834

 

$

64,842

 

$

188,417

 

$

169,113

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM per share:

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.63

 

$

0.57

 

$

1.60

 

$

1.49

 

Discontinued operations

 

 

 

 

(0.01

)

 

 

$

0.63

 

$

0.57

 

$

1.60

 

$

1.48

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.62

 

$

0.56

 

$

1.59

 

$

1.47

 

Discontinued operations

 

 

 

 

 

 

 

$

0.62

 

$

0.56

 

$

1.59

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

117,932

 

114,539

 

117,739

 

113,831

 

Diluted

 

118,907

 

115,620

 

118,767

 

115,054

 

 

more—

 

4



 

AECOM Technology Corporation

Balance Sheet and Cash Flow Information

(in thousands)

 

 

 

June 30, 2011

 

September 30, 2010

 

Balance Sheet Information:

 

 

 

 

 

Cash and cash equivalents

 

$

381,467

 

$

612,857

 

Working capital

 

1,274,152

 

1,094,239

 

Working capital, net of cash and cash equivalents

 

892,685

 

481,382

 

Total debt

 

1,195,991

 

931,127

 

Total assets

 

5,886,631

 

5,242,909

 

Total stockholders’ equity

 

2,481,310

 

2,090,012

 

 

 

 

Nine Months Ended

 

 

 

June 30, 2011

 

June 30, 2010

 

Cash Flow Information:

 

 

 

 

 

Net cash provided by (used in) operating activities*

 

$

(130,124

)

$

43,749

 


* June 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 June 30, 2011

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,772,831

 

$

273,894

 

$

 

$

2,046,725

 

Other direct costs

 

603,050

 

129,549

 

 

732,599

 

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

 

1,169,781

 

144,345

 

 

1,314,126

 

Cost of revenue, net of other direct costs

 

1,059,503

 

133,384

 

 

1,192,887

 

Gross profit

 

110,278

 

10,961

 

 

121,239

 

Equity in earnings of joint ventures

 

4,263

 

7,985

 

 

12,248

 

General and administrative expenses

 

 

 

23,560

 

23,560

 

Income from operations

 

$

114,541

 

$

18,946

 

$

(23,560

)

$

109,927

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

6.2

%

4.0

%

 

5.9

%

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

 

9.4

%

7.6

%

 

9.2

%

 

 

 

 

 

 

 

 

 

 

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

%

 

—more—

 

6



 

AECOM Technology Corporation

Reportable Segments

(in thousands)

 

 

 

Professional
Technical
Services

 

Management
Support
Services

 

Corporate

 

Total

 

Nine Months Ended June 30, 2011

 

 

 

 

 

 

 

 

 

Revenue

 

$

4,994,235

 

$

925,094

 

$

 

$

5,919,329

 

Other direct costs

 

1,594,891

 

503,136

 

 

2,098,027

 

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

 

3,399,344

 

421,958

 

 

3,821,302

 

Cost of revenue, net of other direct costs

 

3,111,774

 

383,219

 

 

3,494,993

 

Gross profit

 

287,570

 

38,739

 

 

326,309

 

Equity in earnings of joint ventures

 

10,392

 

21,283

 

 

31,675

 

General and administrative expenses

 

 

 

70,430

 

70,430

 

Income from operations

 

$

297,962

 

$

60,022

 

$

(70,430

)

$

287,554

 

 

 

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

5.8

%

4.2

%

 

5.5

%

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

 

8.5

%

9.2

%

 

8.5

%

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

$

7,900,596

 

$

1,145,472

 

$

 

$

9,046,068

 

Awarded backlog

 

5,471,906

 

1,518,720

 

 

6,990,626

 

Total backlog

 

$

13,372,502

 

$

2,664,192

 

$

 

$

16,036,694

 

 

 

 

 

 

 

 

 

 

 

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

 

 

—more—

 

7



 

AECOM Technology Corporation

Regulation G Information

(in millions)

 

Reconciliation of Revenue to Revenue, Net of Other Direct Costs

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

June 30, 2011

 

June 30, 2010

 

June 30, 2011

 

June 30, 2010

 

Consolidated

 

 

 

 

 

 

 

 

 

Revenue

 

$

2,046.7

 

$

1,635.1

 

$

5,919.3

 

$

4,717.1

 

Less: Other direct costs

 

732.6

 

572.4

 

2,098.0

 

1,640.2

 

Revenue, net of other direct costs

 

$

1,314.1

 

$

1,062.7

 

$

3,821.3

 

$

3,076.9

 

 

 

 

 

 

 

 

 

 

 

PTS Segment

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,772.8

 

$

1,337.8

 

$

4,994.2

 

$

3,859.2

 

Less: Other direct costs

 

603.0

 

372.7

 

1,594.9

 

1,044.2

 

Revenue, net of other direct costs

 

$

1,169.8

 

$

965.1

 

$

3,399.3

 

$

2,815.0

 

 

 

 

 

 

 

 

 

 

 

MSS Segment

 

 

 

 

 

 

 

 

 

Revenue

 

$

273.9

 

$

297.3

 

$

925.1

 

$

857.9

 

Less: Other direct costs

 

129.6

 

199.7

 

503.1

 

596.0

 

Revenue, net of other direct costs

 

$

144.3

 

$

97.6

 

$

422.0

 

$

261.9

 

 

Reconciliation of EBITDA to Net Income Attributable to AECOM

 

 

 

Three Months Ended

 

 

 

Jun 30,
2011

 

Mar 31,
2011

 

Dec 31,
2010

 

Sep 30,
2010

 

Jun 30,
2010

 

Mar 31,
2010

 

Dec 31,
2009

 

Sep 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

136.2

 

$

114.3

 

$

117.1

 

$

125.8

 

$

105.9

 

$

100.3

 

$

85.5

 

$

99.8

 

Less: Interest (income) / expense

 

10.4

 

10.0

 

9.9

 

5.3

 

1.2

 

2.4

 

1.0

 

2.5

 

Less: Depreciation and amortization

 

28.0

 

27.4

 

29.8

 

21.2

 

17.2

 

18.2

 

22.3

 

23.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to AECOM before income taxes

 

97.8

 

76.9

 

77.4

 

99.3

 

87.5

 

79.7

 

62.2

 

74.0

 

Less: Income tax expense

 

24.0

 

19.2

 

20.5

 

31.5

 

22.7

 

21.0

 

16.5

 

19.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to AECOM

 

73.8

 

57.7

 

56.9

 

67.8

 

64.8

 

58.7

 

45.7

 

54.1

 

Discontinued operations, net of tax

 

 

 

 

 

 

(0.2

)

0.1

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM

 

$

73.8

 

$

57.7

 

$

56.9

 

$

67.8

 

$

64.8

 

$

58.5

 

$

45.8

 

$

54.3

 

 

 

 

Fiscal Years Ended

 

 

 

2010

 

2009

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

417.5

 

$

358.5

 

$

284.5

 

$

195.9

 

Less: Interest (income) / expense

 

9.9

 

10.7

 

(1.3

)

3.3

 

Less: Depreciation and amortization

 

78.9

 

84.1

 

62.8

 

45.1

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to AECOM before income taxes

 

328.7

 

263.7

 

223.0

 

147.5

 

Less: Income tax expense

 

91.7

 

77.0

 

76.5

 

47.2

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to AECOM

 

237.0

 

186.7

 

146.5

 

100.3

 

Discontinued operations, net of tax

 

(0.1

)

3.0

 

0.7

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to AECOM

 

$

236.9

 

$

189.7

 

$

147.2

 

$

100.3

 

 

***

 

8