AECOM Technology Corporation (NYSE:ACM), the world’s #1-ranked engineering design firm, reported fourth-quarter revenue of $2.6 billion and net service revenue1, of $1.3 billion. Operating incomeequaled $103 million, net income2 was $64 million, and diluted earnings per share2 equaled $0.64. After adjusting for acquisition and integration expenses, diluted earnings per share3 were $0.79 for the quarter and $2.53 for the fiscal year.
| Fourth Quarter | Fiscal Year | |||||||||||||||||
| ($ in millions, except EPS) | Q4 FY13 | Q4 FY14 | YOY % | FY13 | FY14 | YOY % | ||||||||||||
| Gross Revenue | $ | 2,079 | $ | 2,563 | 23 | $ | 8,153 | $ | 8,357 | 3 | ||||||||
| Net Service Revenue1 | 1,244 | 1,319 | 6 | 4,977 | 4,856 | (2) | ||||||||||||
| Operating Income | 123 | 103 | (17) | 377 | 353 | (6) | ||||||||||||
| Net Income2 | 77 | 64 | (16) | 239 | 230 | (4) | ||||||||||||
| EPS2 | 0.77 | 0.64 | (17) | 2.35 | 2.33 | (1) | ||||||||||||
| EPS (exc. acquisition/integration expenses)3 | 0.77 | 0.79 | 3 | 2.35 | 2.53 | 8 | ||||||||||||
| Operating Cash Flow | 160 | 175 | 9 | 409 | 361 | (12) | ||||||||||||
| Free Cash Flow5 | 145 | 162 | 11 | 356 | 298 | (17) | ||||||||||||
Note: All comparisons are year over year unless otherwise noted.
“AECOM delivered strong new wins of $4.2 billion in the quarter, and ended the year with total backlog of $25.1 billion, including $3 billion from the addition of Hunt Construction Group,” said Michael S. Burke, AECOM’s chief executive officer. “Our construction services business benefited from continued private sector spending growth and strong execution, while strength in our international design business and improved MSS profitability underscored our leading position in the markets we serve.”
Burke added, “With the URS transaction closed, AECOM is focused on integrating two world-class organizations and executing on our strategy to become the premier fully integrated infrastructure firm.”
“We are pleased to report another strong quarter and fiscal year of free cash flow,” added President and Chief Financial Officer Stephen M. Kadenacy. “We have already begun integrating the two companies and are focused on delivering our targeted synergies.”
New Wins and Backlog
New wins in the quarter of $4.2 billion were driven by strength in the company’s construction services business, which continues to benefit from strong spending growth in AECOM’s core metropolitan markets. Hunt Construction Group, which AECOM acquired during the fourth quarter, contributed $3 billion of acquired backlog. The company’s book-to-burn ratio6 was 1.6x for the quarter, with total backlog at Sept. 30, 2014, of $25.1 billion, representing 52 percent total growth and 33 percent organic growth. These results demonstrate the underlying competitive strength of AECOM’s diversified capabilities as clients increasingly seek to partner with contractors that offer integrated services with global execution capabilities.
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, as well as program and construction management services to institutional, commercial and public sector clients worldwide.
Revenue of $2.4 billion in the quarter increased 27 percent, and net service revenue (NSR) grew 10 percent to $1.2 billion. Growth in construction services and continued strength in Europe, the Middle East, Africa, and Asia helped offset a lower-than-anticipated contribution from the company’s design business in the Americas. For the fiscal fourth quarter and the full year, operating income was $125 million and $407 million, respectively.
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.
Revenue declined 9 percent in the quarter to $201 million, and net service revenue declined 27 percent to $98 million. For the fiscal fourth quarter and the full year, operating income increased $3 million and $9 million, respectively. MSS’s diversification strategy has allowed for margin improvement despite the decline in revenue.
Tax Rate
Inclusive of the non-controlling interest deduction and excluding acquisition and integration expenses incurred during the fourth quarter, the tax rate was 30.1 percent, with a full-year rate of 26.4 percent. Inclusive of the impact of acquisition and integration expenses, the company’s tax rate for the fourth quarter and full year was 31.7 percent and 26.3 percent, respectively.
Cash Flow
Cash flow from operations for the quarter was $175 million and $361 million for the full year. Free cash flow, which includes capital expenditures of $13 million in the quarter and $63 million for the full year, was $162 million and $298 million, respectively.
Balance Sheet
As of Sept. 30, 2014, AECOM had $574 million of total cash and cash equivalents, $1.0 billion of debt and $1.05 billion in committed bank facilities with $1.04 billion in unused capacity.
Fiscal 2015 Outlook
AECOM is targeting adjusted EPS4 for fiscal year 2015 of $2.75 to $3.35. The mid-point of the guidance range assumes approximately $110 million of realized synergies from the acquisition of URS.
In addition, the company expects full-year interest expense of approximately $225 million, a tax rate of 32 percent, excluding acquisition and integration expenses and the amortization of intangibles assets, and a full-year share count of 155 million shares.
Adjusted EPS guidance excludes the amortization of intangible assets and acquisition and integration expenses. In total, these items are expected to result in a pre-tax expense of approximately $540 million.
AECOM is hosting a conference call today at 12 p.m. EST, 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) | AECOM’s revenue includes a significant amount of pass-through costs and, therefore, the company believes that revenue, net of other direct costs (net service revenue, or NSR), which is a non-GAAP measure, also provides a meaningful perspective on its business results. See the accompanying reconciliation of revenue, net of other direct costs, to revenue, the closest comparable GAAP measure. | ||
(2) | Defined as attributable to AECOM. | ||
(3) | Defined as attributable to AECOM, excluding acquisition and integration expenses. | ||
(4) | Defined as attributable to AECOM, excluding intangible amortization, and acquisition and integration expenses. | ||
(5) | Free cash flow is defined as cash flow from operations less capital expenditures and is a non-GAAP measure. See the accompanying reconciliation of free cash flow from operations, to cash flow from operations, the closest comparable GAAP measure. | ||
(6) | Book-to-burn ratio is defined as the amount of gross revenue wins divided by gross revenue recognized during the period. |
About AECOM
With nearly 100,000 employees — including architects, engineers, designers, planners, scientists and management and construction services professionals — serving clients in more than 150 countries around the world following the acquisition of URS, AECOM is a premier, fully integrated infrastructure and support services firm. AECOM is ranked as the #1 engineering design firm by revenue in Engineering News-Record magazine’s annual industry rankings. The company is a leader in all of the key markets that it serves, including transportation, facilities, environmental, energy, oil and gas, water, high-rise buildings and government. 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 companies, including URS Corporation and Hunt Construction Group, had revenue of approximately $19.5 billion during the 12 months ended Sept. 30, 2014. 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, revenue, profit margins, cash flows, share count 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 global economic conditions and 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 failure 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.
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 revenue, net of other direct costs, 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. This 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 the company’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
| AECOM Technology Corporation | |||||||||||||||||||||
| Consolidated Statement of Income | |||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| September 30, 2013 | September 30, 2014 | % Change | September 30, 2013 | September 30, 2014 | % Change | ||||||||||||||||
| Revenue | $ | 2,079,087 | $ | 2,562,529 | 23.3 | % | $ | 8,153,495 | $ | 8,356,783 | 2.5 | % | |||||||||
| Other direct costs | 834,968 | 1,243,294 | 48.9 | % | 3,176,520 | 3,501,156 | 10.2 | % | |||||||||||||
| Revenue, net of other direct costs (non-GAAP) | 1,244,119 | 1,319,235 | 6.0 | % | 4,976,975 | 4,855,627 | (2.4 | %) | |||||||||||||
| Cost of revenue, net of other direct costs | 1,103,906 | 1,190,204 | 7.8 | % | 4,526,987 | 4,452,451 | (1.6 | %) | |||||||||||||
| Gross profit | 140,213 | 129,031 | (8.0 | %) | 449,988 | 403,176 | (10.4 | %) | |||||||||||||
| Equity in earnings of joint ventures | 6,464 | 8,509 | 31.6 | % | 24,319 | 57,924 | 138.2 | % | |||||||||||||
| General and administrative expenses | (23,953 | ) | (15,547 | ) | (35.1 | %) | (97,318 | ) | (80,908 | ) | (16.9 | %) | |||||||||
| Acquisition and integration expenses | – | (19,473 | ) | 0.0 | % | – | (27,310 | ) | 0.0 | % | |||||||||||
| Income from operations | 122,724 | 102,520 | (16.5 | %) | 376,989 | 352,882 | (6.4 | %) | |||||||||||||
| Other income | 1,480 | 1,892 | 27.8 | % | 3,522 | 2,748 | (22.0 | %) | |||||||||||||
| Interest expense | (10,242 | ) | (10,120 | ) | (1.2 | %) | (44,737 | ) | (40,842 | ) | (8.7 | %) | |||||||||
| Income before income tax expense | 113,962 | 94,292 | (17.3 | %) | 335,774 | 314,788 | (6.3 | %) | |||||||||||||
| Income tax expense | 35,735 | 29,657 | (17.0 | %) | 92,578 | 82,024 | (11.4 | %) | |||||||||||||
| Net income | 78,227 | 64,635 | (17.4 | %) | 243,196 | 232,764 | (4.3 | %) | |||||||||||||
| Noncontrolling interest in income of consolidated subsidiaries, net of tax | (1,659 | ) | (609 | ) | (63.3 | %) | (3,953 | ) | (2,910 | ) | (26.4 | %) | |||||||||
| Net income attributable to AECOM | $ | 76,568 | $ | 64,026 | (16.4 | %) | $ | 239,243 | $ | 229,854 | (3.9 | %) | |||||||||
| Net income attributable to AECOM per share: | |||||||||||||||||||||
| Basic | $ | 0.78 | $ | 0.65 | (16.7 | %) | $ | 2.38 | $ | 2.36 | (0.8 | %) | |||||||||
| Diluted | $ | 0.77 | $ | 0.64 | (16.9 | %) | $ | 2.35 | $ | 2.33 | (0.9 | %) | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||
| Basic | 98,028 | 98,107 | 0.1 | % | 100,618 | 97,226 | (3.4 | %) | |||||||||||||
| Diluted | 99,652 | 99,743 | 0.1 | % | 101,942 | 98,657 | (3.2 | %) | |||||||||||||
| AECOM Technology Corporation | |||||
| Balance Sheet and Cash Flow Information | |||||
| (in thousands) | |||||
| September 30, 2013 | September 30, 2014 | ||||
| Balance Sheet Information: | |||||
Total cash and cash equivalents | $ | 600,677 | $ | 574,188 | |
| Accounts receivable – net | 2,342,262 | 2,654,976 | |||
| Working capital | 1,078,053 | 978,344 | |||
| Working capital, net of cash and cash equivalents | 477,376 | 404,156 | |||
| Total debt | 1,173,325 | 1,003,978 | |||
| Total assets | 5,665,623 | 6,121,777 | |||
| Total AECOM stockholders’ equity | 2,021,443 | 2,188,817 | |||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| September 30, 2013 | September 30, 2014 | September 30, 2013 | September 30, 2014 | ||||||||||||
| Cash Flow Information: | |||||||||||||||
| Net cash provided by operating activities | $ | 160,147 | $ | 174,916 | $ | 408,598 | $ | 360,625 | |||||||
| Payments for capital expenditures | (15,050 | ) | (13,274 | ) | (52,117 | ) | (62,852 | ) | |||||||
| Free cash flow | $ | 145,097 | $ | 161,642 | $ | 356,481 | $ | 297,773 | |||||||
AECOM Technology Corporation | ||||||||||||||||
| Reportable Segments | ||||||||||||||||
| (in thousands) | ||||||||||||||||
Professional | Management | Corporate | Total | |||||||||||||
| Three Months Ended September 30, 2014 | ||||||||||||||||
| Revenue | $ | 2,361,534 | $ | 200,995 | $ | - | $ | 2,562,529 | ||||||||
| Other direct costs | 1,140,575 | 102,719 | - | 1,243,294 | ||||||||||||
| Revenue, net of other direct costs (non-GAAP) | 1,220,959 | 98,276 | - | 1,319,235 | ||||||||||||
| Cost of revenue, net of other direct costs | 1,100,501 | 89,703 | - | 1,190,204 | ||||||||||||
| Gross profit | 120,458 | 8,573 | - | 129,031 | ||||||||||||
| Equity in earnings of joint ventures | 4,917 | 3,592 | - | 8,509 | ||||||||||||
| General and administrative expenses | - | - | (15,547 | ) | (15,547 | ) | ||||||||||
| Acquisition and integration expenses | - | - | (19,473 | ) | (19,473 | ) | ||||||||||
| Income (loss) from operations | $ | 125,375 | $ | 12,165 | $ | (35,020 | ) | $ | 102,520 | |||||||
| Gross profit as a % of revenue | 5.1 | % | 4.3 | % | - | 5.0 | % | |||||||||
| Gross profit as a % of revenue, net of other direct costs (non-GAAP) | 9.9 | % | 8.7 | % | - | 9.8 | % | |||||||||
| Three Months Ended September 30, 2013 | ||||||||||||||||
| Revenue | $ | 1,858,660 | $ | 220,427 | $ | - | $ | 2,079,087 | ||||||||
| Other direct costs | 748,363 | 86,605 | - | 834,968 | ||||||||||||
| Revenue, net of other direct costs (non-GAAP) | 1,110,297 | 133,822 | - | 1,244,119 | ||||||||||||
| Cost of revenue, net of other direct costs | 974,677 | 129,229 | - | 1,103,906 | ||||||||||||
| Gross profit | 135,620 | 4,593 | - | 140,213 | ||||||||||||
| Equity in earnings of joint ventures | 2,051 | 4,413 | - | 6,464 | ||||||||||||
| General and administrative expenses | - | - | (23,953 | ) | (23,953 | ) | ||||||||||
| Income (loss) from operations | $ | 137,671 | $ | 9,006 | $ | (23,953 | ) | $ | 122,724 | |||||||
| Gross profit as a % of revenue | 7.3 | % | 2.1 | % | - | 6.7 | % | |||||||||
| Gross profit as a % of revenue, net of other direct costs (non-GAAP) | 12.2 | % | 3.4 | % | - | 11.3 | % | |||||||||
AECOM Technology Corporation | ||||||||||||||||
| Reportable Segments | ||||||||||||||||
| (in thousands) | ||||||||||||||||
Professional | Management | Corporate | Total | |||||||||||||
| Twelve Months Ended Sept. 30, 2014 | ||||||||||||||||
| Revenue | $ | 7,609,921 | $ | 746,862 | $ | - | $ | 8,356,783 | ||||||||
| Other direct costs | 3,147,222 | 353,934 | - | 3,501,156 | ||||||||||||
| Revenue, net of other direct costs (non-GAAP) | 4,462,699 | 392,928 | - | 4,855,627 | ||||||||||||
| Cost of revenue, net of other direct costs | 4,097,497 | 354,954 | - | 4,452,451 | ||||||||||||
| Gross profit | 365,202 | 37,974 | - | 403,176 | ||||||||||||
| Equity in earnings of joint ventures | 41,405 | 16,519 | - | 57,924 | ||||||||||||
| General and administrative expenses | - | - | (80,908 | ) | (80,908 | ) | ||||||||||
| Acquisition and integration expenses | - | - | (27,310 | ) | (27,310 | ) | ||||||||||
| Income (loss) from operations | $ | 406,607 | $ | 54,493 | $ | (108,218 | ) | $ | 352,882 | |||||||
| Gross profit as a % of revenue | 4.8 | % | 5.1 | % | - | 4.8 | % | |||||||||
| Gross profit as a % of revenue, net of other direct costs (non-GAAP) | 8.2 | % | 9.7 | % | - | 8.3 | % | |||||||||
| Contracted backlog | $ | 10,740,108 | $ | 608,895 | $ | - | $ | 11,349,003 | ||||||||
| Awarded backlog | 12,391,080 | 1,343,071 | - | 13,734,151 | ||||||||||||
| Total backlog | $ | 23,131,188 | $ | 1,951,966 | $ | - | $ | 25,083,154 | ||||||||
| Twelve Months Ended Sept. 30, 2013 | ||||||||||||||||
| Revenue | $ | 7,242,859 | $ | 910,636 | $ | - | $ | 8,153,495 | ||||||||
| Other direct costs | 2,826,452 | 350,068 | - | 3,176,520 | ||||||||||||
| Revenue, net of other direct costs (non-GAAP) | 4,416,407 | 560,568 | - | 4,976,975 | ||||||||||||
| Cost of revenue, net of other direct costs | 3,999,523 | 527,464 | - | 4,526,987 | ||||||||||||
| Gross profit | 416,884 | 33,104 | - | 449,988 | ||||||||||||
| Equity in earnings of joint ventures | 12,356 | 11,963 | - | 24,319 | ||||||||||||
| General and administrative expenses | - | - | (97,318 | ) | (97,318 | ) | ||||||||||
| Income (loss) from operations | $ | 429,240 | $ | 45,067 | $ | (97,318 | ) | $ | 376,989 | |||||||
| Gross profit as a % of revenue | 5.8 | % | 3.6 | % | - | 5.5 | % | |||||||||
| Gross profit as a % of revenue, net of other direct costs (non-GAAP) | 9.4 | % | 5.9 | % | - | 9.0 | % | |||||||||
| Contracted backlog | $ | 8,378,426 | $ | 374,871 | $ | - | $ | 8,753,297 | ||||||||
| Awarded backlog | 6,886,068 | 914,011 | - | 7,800,079 | ||||||||||||
| Total backlog | $ | 15,264,494 | $ | 1,288,882 | $ | - | $ | 16,553,376 | ||||||||
AECOM Technology Corporation Regulation G Information (in millions) | ||||||||||||||
Reconciliation of Revenue to Revenue, Net of Other Direct Costs | ||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||
| Sep 30, 2013 | Jun 30, 2014 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | ||||||||||
| Consolidated | ||||||||||||||
| Revenue | $ | 2,079.1 | $ | 1,968.2 | $ | 2,562.5 | $ | 8,153.5 | $ | 8,356.8 | ||||
| Less: Other direct costs | 835.0 | 763.5 | 1,243.3 | 3,176.5 | 3,501.2 | |||||||||
| Revenue, net of other direct costs | $ | 1,244.1 | $ | 1,204.7 | $ | 1,319.2 | $ | 4,977.0 | $ | 4,855.6 | ||||
| PTS Segment | ||||||||||||||
| Revenue | $ | 1,858.7 | $ | 1,794.6 | $ | 2,361.5 | $ | 7,242.9 | $ | 7,609.9 | ||||
| Less: Other direct costs | 748.4 | 682.6 | 1,140.5 | 2,826.5 | 3,147.2 | |||||||||
| Revenue, net of other direct costs | $ | 1,110.3 | $ | 1,112.0 | $ | 1,221.0 | $ | 4,416.4 | $ | 4,462.7 | ||||
| MSS Segment | ||||||||||||||
| Revenue | $ | 220.4 | $ | 173.6 | $ | 201.0 | $ | 910.6 | $ | 746.9 | ||||
| Less: Other direct costs | 86.6 | 80.9 | 102.8 | 350.0 | 354.0 | |||||||||
| Revenue, net of other direct costs | $ | 133.8 | $ | 92.7 | $ | 98.2 | $ | 560.6 | $ | 392.9 | ||||
Reconciliation of Amounts Provided by Acquired Companies | |||||||||||||||||
| Three Months Ended Sep 30, 2014 | Twelve Months Ended Sep 30, 2014 | ||||||||||||||||
| Total | Provided by | Excluding Effect | Total | Provided by | Excluding Effect | ||||||||||||
| Revenue, net of other direct costs – Consolidated | $ | 1,319.2 | $ | 20.0 | $ | 1,299.2 | $ | 4,855.6 | $ | 38.6 | $ | 4,817.0 | |||||
| Revenue, net of other direct costs – PTS Segment | 1,221.0 | 20.0 | 1,201.0 | 4,462.7 | 38.6 | 4,424.1 | |||||||||||
Reconciliation of EBITDA to Net Income Attributable to AECOM | |||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| Dec 31, 2012 | Mar 31, 2013 | Jun 30, 2013 | Sep 30, 2013 | Dec 31, 2013 | Mar 31, 2014 | Jun 30, 2014 | Sep 30, 2014 | ||||||||||||||||||||||||
| EBITDA | $ | 84.7 | $ | 102.5 | $ | 135.1 | $ | 144.5 | $ | 111.5 | $ | 89.0 | $ | 115.9 | $ | 127.2 | |||||||||||||||
| Less: Interest expense1 | (10.4 | ) | (11.3 | ) | (11.0 | ) | ( 9.6 | ) | (9.8 | ) | (10.0 | ) | (9.2 | ) | (9.5 | ) | |||||||||||||||
| Add: Interest income2 | 0.4 | 0.5 | 0.4 | 0.4 | 0.4 | 0.3 | 0.6 | 0.9 | |||||||||||||||||||||||
| Less: Depreciation and amortization3 | (23.9 | ) | (23.9 | ) | (23.6 | ) | (23.0 | ) | (22.2 | ) | (23.9 | ) | (24.4 | ) | (24.9 | ) | |||||||||||||||
| Income attributable to AECOM before income taxes | 50.8 | 67.8 | 100.9 | 112.3 | 79.9 | 55.4 | 82.9 | 93.7 | |||||||||||||||||||||||
| Less: Income tax expense | 12.7 | 14.0 | 30.1 | 35.8 | 23.5 | 15.2 | 13.7 | 29.6 | |||||||||||||||||||||||
| Net income attributable to AECOM | $ | 38.1 | $ | 53.8 | $ | 70.8 | $ | 76.5 | $ | 56.4 | $ | 40.2 | $ | 69.2 | $ | 64.1 | |||||||||||||||
| Fiscal Years Ended | |||||||||||||||||||||||||||||||
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | ||||||||||||||||||||||||
| EBITDA before goodwill impairment | $ | 195.9 | $ | 284.5 | $ | 358.5 | $ | 417.5 | $ | 525.4 | $ | 497.5 | $ | 466.8 | $ | 443.6 | |||||||||||||||
| Less: Goodwill impairment | - | - | - | - | - | (336.0 | ) | - | - | ||||||||||||||||||||||
| EBITDA | 195.9 | 284.5 | 358.5 | 417.5 | 525.4 | 161.5 | 466.8 | 443.6 | |||||||||||||||||||||||
| Less: Interest expense1 | (9.0 | ) | (5.8 | ) | (11.9 | ) | (10.7 | ) | (40.8 | ) | (44.3 | ) | (42.3 | ) | (38.5 | ) | |||||||||||||||
| Add: Interest income2 | 5.7 | 7.1 | 1.2 | 0.8 | 1.6 | 1.6 | 1.7 | 2.2 | |||||||||||||||||||||||
| Less: Depreciation and amortization3 | (45.1 | ) | (62.8 | ) | (84.1 | ) | (78.9 | ) | (110.3 | ) | (103.0 | ) | (94.4 | ) | (95.4 | ) | |||||||||||||||
| Income from continuing operations attributable to AECOM before income taxes | 147.5 | 223.0 | 263.7 | 328.7 | 375.9 | 15.8 | 331.8 | 311.9 | |||||||||||||||||||||||
| Less: Income tax expense | 47.2 | 76.5 | 77.0 | 91.7 | 100.1 | 74.4 | 92.6 | 82.0 | |||||||||||||||||||||||
| Income (loss) from continuing operations attributable to AECOM | 100.3 | 146.5 | 186.7 | 237.0 | 275.8 | (58.6 | ) | 239.2 | 229.9 | ||||||||||||||||||||||
| Discontinued operations, net of tax | - | 0.7 | 3.0 | (0.1 | ) | - | - | - | - | ||||||||||||||||||||||
| Net income (loss) attributable to AECOM | $ | 100.3 | $ | 147.2 | $ | 189.7 | $ | 236.9 | $ | 275.8 | $ | (58.6 | ) | $ | 239.2 | $ | 229.9 | ||||||||||||||
1 Excludes related amortization 2 Included in other income 3 Includes the amount for noncontrolling interests in consolidated subsidiaries
AECOM Technology Corporation Regulation G Information (in millions, except per share data) | ||||||||
Reconciliation of Total Debt to Net Debt | ||||||||
| Balances at | ||||||||
| Sep 30, 2013 | Jun 30, 2014 | Sep 30, 2014 | ||||||
| Short-term debt | $ | 29.6 | $ | 27.9 | $ | 23.9 | ||
| Current portion of long-term debt | 54.6 | 38.5 | 40.5 | |||||
| Long-term debt | 1,089.1 | 977.0 | 939.6 | |||||
| Total debt | 1,173.3 | 1,043.4 | 1,004.0 | |||||
| Less: Total cash and cash equivalents | 600.7 | 510.1 | 574.2 | |||||
| Net Debt | $ | 572.6 | $ | 533.3 | $ | 429.8 | ||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | ||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| Sep 30, 2013 | Jun 30, 2014 | Sep 30, 2014 | Sep 30, 2011 | Sep 30, 2012 | Sep 30, 2013 | Sep 30, 2014 | ||||||||||||||||||||||
| Net cash provided by operating activities | $ | 160.2 | $ | 79.7 | $ | 174.9 | $ | 132.0 | $ | 433.4 | $ | 408.6 | $ | 360.6 | ||||||||||||||
| Capital expenditures | (15.1 | ) | (16.4 | ) | (13.2 | ) | (78.0 | ) | (62.9 | ) | (52.1 | ) | (62.8 | ) | ||||||||||||||
| Settlement of deferred compensation plan liability | - | - | - | 90.0 | - | - | - | |||||||||||||||||||||
| Excess tax benefit from share-based payment (associated with DCP termination | - | - | - | 58.0 | - | - | - | |||||||||||||||||||||
| Free Cash Flow | $ | 145.1 | $ | 63.3 | $ | 161.7 | $ | 202.0 | $ | 370.5 | $ | 356.5 | $ | 297.8 | ||||||||||||||
Reconciliation of Reported Amounts to Reported Amounts, Excluding Acquisition and Integration Expenses | |||||||||
| Three Months Ended | Twelve Months Ended | ||||||||
| Jun 30, 2014 | Sep 30, 2014 | Sep 30, 2014 | |||||||
| Income from operations | $ | 91.5 | $ | 102.5 | $ | 352.9 | |||
| Acquisition and Integration (A&I) expenses | 7.8 | 19.5 | 27.3 | ||||||
| Income from operations excluding A&I expenses | $ | 99.3 | $ | 122.0 | $ | 380.2 | |||
| EBITDA | $ | 115.9 | $ | 127.2 | $ | 443.6 | |||
| Acquisition and Integration expenses | 7.8 | 19.5 | 27.3 | ||||||
| EBITDA excluding A&I expenses | $ | 123.7 | $ | 146.7 | $ | 470.9 | |||
| Income tax expense | $ | 13.7 | $ | 29.7 | $ | 82.0 | |||
| Acquisition and Integration tax impact | 3.1 | 4.4 | 7.5 | ||||||
| Income tax expense excluding A&I tax impact | $ | 16.8 | $ | 34.1 | $ | 89.5 | |||
| Net income attributable to AECOM | $ | 69.2 | $ | 64.0 | $ | 229.9 | |||
| Acquisition and Integration expenses, net of tax | 4.7 | 15.1 | 19.8 | ||||||
| Net income attributable to AECOM excluding A&I expenses, net of tax | $ | 73.9 | $ | 79.1 | $ | 249.7 | |||
| Net income attributable to AECOM – per diluted share | $ | 0.70 | $ | 0.64 | $ | 2.33 | |||
| Acquisition and Integration expenses, net of tax – per diluted share | 0.05 | 0.15 | 0.20 | ||||||
|
Net income attributable to AECOM – per diluted share, excluding A&I expenses, net of tax – per diluted share | $ | 0.75 | $ | 0.79 | $ | 2.53 | |||
NR 14-1101
Contacts:
Media:
Paul Gennaro,
212-973-3167
SVP & Chief Communications Officer
Paul.Gennaro@aecom.com
or
Investors:
Paul
Cyril, 213-593-8322
SVP, Investor Relations
Paul.Cyril@aecom.com
