News Release
|
Third Quarter |
|
Year-to-Date Fiscal 2019 |
||||||
($ in millions, except EPS) |
As Reported |
Adjusted1 |
As Reported |
Adjusted |
|
As Reported |
Adjusted1 |
As Reported |
Adjusted |
Revenue |
$4,980 |
-- |
(3%) |
-- |
|
$15,058 |
-- |
1% |
-- |
Operating Income |
$193 |
$226 |
20% |
12% |
|
$445 |
$621 |
79% |
15% |
Net Income |
$84 |
$115 |
37% |
14% |
|
$213 |
$313 |
306% |
4% |
EPS (Fully Diluted) |
$0.52 |
$0.72 |
41% |
16% |
|
$1.34 |
$1.97 |
319% |
6% |
EBITDA |
-- |
$244 |
-- |
10% |
|
-- |
$687 |
-- |
14% |
Backlog |
$58,866 |
-- |
10%2 |
-- |
|
|
|
|
|
Third Quarter and Year-to-Date Fiscal 2019 Accomplishments:
- Revenue of
$5.0 billion in the third quarter decreased by 3% over the prior year and included 10% organic3 growth in the Management Services segment and continued underlying growth in theAmericas design business, which was offset by anticipated lower levels of storm recovery work in theU.S. Virgin Islands . - The DCS segment operating margin and adjusted operating margin1 of 7.2% and 7.4%, respectively, was at the highest level in three years, buoyed by the already-actioned
$225 million G&A reduction plan and strong execution. - Net income and diluted earnings per share were
$84 million and$0.52 in the third quarter, respectively, compared to$61 million and$0.37 in the prior year; on an adjusted basis, diluted earnings per share1 was$0.72 , an increase of 16% from the prior year.
- Third quarter adjusted EBITDA1 increased by 10% over the prior year to
$244 million and year-to-date adjusted EBITDA increased by 14% to$687 million due primarily to higher margins and increased profitability in the DCS segment.
- Year-to-date wins of
$21.2 billion resulted in a 1.3 book-to-burn4 ratio and 10%2 total backlog growth to nearly$59 billion ; backlog across all segments remains near-record levels. - The Company reiterated its full year financial guidance for adjusted EBITDA1 growth of 12% at the mid-point of the
$920-$960 million range, adjusted EPS1 in the range of$2.60-$2.90 ; free cash flow5 is now expected to be at the lower end of the annual$600 to $800 million guidance range due to the timing of collections, primarily related to storm recovery work in theU.S. Virgin Islands , which is expected to be fully funded byFEMA .
Expanding on Strategic Value Creation Actions with Additional Margin Improvement Plan:
- Building on the success of AECOM’s strategic value creating and margin enhancing actions to-date, as demonstrated by the 100 basis point year-to-date adjusted operating margin improvement in the DCS segment,
AECOM announced additional restructuring actions expected to commence later this year to further enhance margins by aligning the Company’s cost structure with its transforming business profile.
– The Company is increasing its adjusted operating margin1 target for the DCS segment in fiscal 2020 by 50 basis points to at least 8.0%, which would represent a 210 basis point increase from the fiscal 2018 margin; this guidance continues to reflect the expected benefit in fiscal 2020 from the already-executed
– These actions underscore the Company’s commitment to delivering on its expectation for fiscal 2020 adjusted EBITDA to be in excess of
– The Company will provide formal financial guidance for fiscal 2020 and additional details on the restructuring actions as part of its fourth quarter earnings presentation and at its Investor Day in December.
- On
June 17 th, the Company announced its intent to pursue a separation of the Management Services segment. The Company continues to make significant progress on the many activities associated with the separation.
- In addition, the Company continues to take actions to de-risk its portfolio with the goal of further honing management’s focus on its higher-returning and lower-risk professional services businesses where its competitive advantages are greatest, including the recently closed sales of its Oil & Gas Production Services and International Development businesses as well as ongoing actions to exit more than 30 countries.
- The Company is also continuing its accelerated review of its at-risk construction businesses with a stated goal of having zero self-perform at-risk construction exposure.
“The strategic actions we have taken over the past two years and continue to take are delivering positive results, including 14% year-to-date adjusted EBITDA growth, a 100 basis point increase in year-to-date DCS margins including a three year high margin achieved in the third quarter, and continued near record backlog across the business,” said
“We are pleased with our strong earnings performance, and the already-realized and anticipated benefits from our value creation efforts,” said
Wins and Backlog
Wins were
Business Segments
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 third quarter was
Operating income was
Construction Services (CS)
The CS segment provides construction services for energy, sports, commercial, industrial, and public and private infrastructure clients.
Revenue in the third quarter was
Operating income was
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 third quarter was
Operating income was
The ACAP segment invests in and develops real estate projects. Revenue in the third quarter was
Tax Rate
The effective tax rate in the third quarter was 25.8%. On an adjusted basis, the effective tax rate was 25.0%. The adjusted tax rate was derived by re-computing the annual effective tax rate on earnings from adjusted net income.6 The adjusted tax expense differs from the GAAP tax expense based on the taxability or deductibility and tax rate applied to each of the adjustments.
Cash Flow
Operating cash flow for the third quarter was
Balance Sheet and Capital Allocation
As of
Financial Outlook and Impacts of Strategic Actions
AECOM’s fiscal 2019 financial guidance is as follows:
|
Fiscal Year 2019 Outlook |
|
Adjusted EBITDA1 |
$920 - $960 million |
|
Adjusted EPS1 |
$2.60 – $2.90 |
|
Adjusted Interest Expense (excluding amortization of deferred financing fees) |
$200 million |
|
Amortization7 |
$89 million |
|
Full-Year Share Count |
160 million |
|
Effective Tax Rate for Adjusted Earnings6 |
~25% |
|
Capital Expenditures8 |
~$120 million |
Included in the Company’s fiscal 2019 guidance is approximately
Conference Call
1 Excluding acquisition and integration-related items, transaction-related expenses, financing charges in interest expense, foreign exchange gains, the amortization of intangible assets, financial impacts associated with expected and actual dispositions of non-core businesses and assets, restructuring costs and the revaluation of deferred taxes and one-time tax repatriation charge associated with U.S. tax reform. If an individual adjustment has no financial impact then the individual adjustment is not reflected in the Regulation G Information tables. See Regulation G Information for a reconciliation of Non-GAAP measures.
2 On a constant-currency basis.
3 Organic growth is year-over-year 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.
4 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.
5 Free cash flow is defined as cash flow from operations less capital expenditures net of proceeds from disposals.
6 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.
7 Amortization of intangible assets expense includes the impact of amortization included in equity in earnings of joint ventures and non-controlling interests.
8 Capital expenditures, net of proceeds from disposals.
About
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, cost savings, profitability, cash flows, tax rate, share count, stock repurchases, interest expense, capital expenditures, amortization of intangible assets and financial fees, or other financial items, any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, exposure to self-perform at-risk construction, risk profile and investment strategies, any statements regarding future economic conditions or performance and any statements with respect to the potential separation of the Management Services segment from
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: our business is cyclical and vulnerable to economic downturns and client spending reductions; long-term government contracts and subject to uncertainties related to government contract appropriations; government shutdowns; governmental agencies may modify, curtail or terminate our contracts; government contracts are subject to audits and adjustments of contractual terms; losses under fixed-price contracts; limited control over operations run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with business laws and regulations; maintaining adequate surety and financial capacity; high leveraged and potential inability to service our debt and guarantees; exposure to Brexit and tariffs; exposure to political and economic risks in different countries; currency exchange rate fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations;
This press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that non-GAAP financial measures such as adjusted EPS, adjusted EBITDA, adjusted net/operating income, adjusted tax rate, adjusted interest expense, organic revenue, and free cash flow provide a meaningful perspective on its business results as the Company utilizes this information to evaluate and manage the business. We use adjusted EBITDA, adjusted EPS, adjusted net/operating income, adjusted tax rate and adjusted interest expense to exclude the impact of non-operating items, such as amortization expense, taxes, acquisition and integration expenses, and non-core operating losses to aid investors in better understanding our core performance results. We use free cash flow to represent the cash generated after capital expenditures to maintain our business. We present constant currency information, such as organic revenue, to help assess how our underlying businesses performed excluding the effect of foreign currency rate fluctuations to aid investors in better understanding our international operational performance.
This press release contains information related to future restructuring actions that are expected to commence upon the adoption of a plan per applicable accounting standards.
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 Information tables at the back of this release.
When we provide our long term projections for organic revenue growth, adjusted EBITDA, adjusted EPS growth, and free cash flow on a forward-looking basis, the closest corresponding GAAP measure and a reconciliation of the differences between the non-GAAP expectation and the corresponding GAAP measure generally is not available without unreasonable effort due to the length, high variability, complexity and low visibility associated with the non-GAAP expectation projected against the multi-year forecast which could significantly impact the GAAP measure.
AECOM Consolidated Statements of Income (unaudited - in thousands, except per share data) |
|||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||||||||||||
|
|
June 30, |
|
June 30, |
|
% |
|
June 30, |
|
June 30, |
|
% |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue |
|
$ |
|
5,147,920 |
|
$ |
|
4,980,204 |
|
(3.3 |
)% |
|
$ |
|
14,849,662 |
|
$ |
|
15,057,721 |
|
1.4 |
% |
|
Cost of revenue |
|
|
4,962,741 |
|
|
4,770,960 |
|
(3.9 |
)% |
|
|
14,387,059 |
|
|
14,482,502 |
|
0.7 |
% |
|
||||
Gross profit |
|
|
185,179 |
|
|
209,244 |
|
13.0 |
% |
|
|
462,603 |
|
|
575,219 |
|
24.3 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of joint ventures |
|
|
12,863 |
|
|
28,563 |
|
122.1 |
% |
|
|
55,621 |
|
|
67,030 |
|
20.5 |
% |
|
||||
General and administrative expenses |
|
|
(35,159 |
) |
|
(37,534 |
) |
6.8 |
% |
|
|
(100,046 |
) |
|
(110,867 |
) |
10.8 |
% |
|
||||
Restructuring costs |
|
— |
|
— |
|
NM |
|
|
— |
|
|
(79,170 |
) |
NM |
|
|
|||||||
Loss on disposal activities |
|
|
(2,149 |
) |
|
(7,404 |
) |
244.5 |
% |
|
|
(2,149 |
) |
|
(7,404 |
) |
244.5 |
% |
|
||||
Impairment of assets held for sale, including goodwill |
|
— |
|
— |
|
NM |
|
|
|
(168,178 |
) |
— |
|
(100.0 |
)% |
|
|||||||
Income from operations |
|
|
160,734 |
|
|
192,869 |
|
20.0 |
% |
|
|
247,851 |
|
|
444,808 |
|
79.5 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income |
|
|
2,752 |
|
|
4,886 |
|
77.5 |
% |
|
|
17,542 |
|
|
12,749 |
|
(27.3 |
)% |
|
||||
Interest expense |
|
|
(55,213 |
) |
|
(55,764 |
) |
1.0 |
% |
|
|
(211,955 |
) |
|
(169,618 |
) |
(20.0 |
)% |
|
||||
Income before income tax expense (benefit) |
|
|
108,273 |
|
|
141,991 |
|
31.1 |
% |
|
|
53,438 |
|
|
287,939 |
|
438.8 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax expense (benefit) |
|
|
33,131 |
|
|
36,603 |
|
10.5 |
% |
|
|
(38,362 |
) |
|
23,946 |
|
(162.4 |
)% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
|
|
75,142 |
|
|
105,388 |
|
40.3 |
% |
|
|
91,800 |
|
|
263,993 |
|
187.6 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax |
|
|
(14,232 |
) |
|
(21,650 |
) |
52.1 |
% |
|
|
(39,309 |
) |
|
(50,891 |
) |
29.5 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to AECOM |
|
$ |
|
60,910 |
|
$ |
|
83,738 |
|
37.5 |
% |
|
$ |
|
52,491 |
|
$ |
|
213,102 |
|
306.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to AECOM per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
$ |
|
0.38 |
|
$ |
|
0.53 |
|
39.5 |
% |
|
$ |
|
0.33 |
|
$ |
|
1.36 |
|
312.1 |
% |
|
Diluted |
|
$ |
|
0.37 |
|
$ |
|
0.52 |
|
40.5 |
% |
|
$ |
|
0.32 |
|
$ |
|
1.34 |
|
318.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
160,395 |
|
|
157,429 |
|
(1.8 |
)% |
|
|
159,266 |
|
|
156,822 |
|
(1.5 |
)% |
|
||||
Diluted |
|
|
163,213 |
|
|
159,787 |
|
(2.1 |
)% |
|
|
162,426 |
|
|
159,269 |
|
(1.9 |
)% |
|
Balance Sheet and Cash Flow Information (unaudited - in thousands) |
||||||
|
|
|
|
|
||
|
September 30, 2018 |
|
June 30, 2019 |
|
||
Balance Sheet Information: |
|
|
|
|
||
Total cash and cash equivalents |
$ |
886,733 |
|
$ |
793,567 |
|
Accounts receivable and contract assets – net |
|
5,468,821 |
|
|
5,828,118 |
|
Working capital |
|
997,645 |
|
|
1,331,120 |
|
Total debt, excluding unamortized debt issuance costs |
|
3,673,463 |
|
|
3,852,507 |
|
Total assets |
|
14,681,131 |
|
|
14,795,212 |
|
Total AECOM stockholders’ equity |
|
4,092,780 |
|
4,303,004 |
|
AECOM |
|
||||||||||||||||||||
Reportable Segments |
|
||||||||||||||||||||
(unaudited - in thousands) |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Design & |
Construction |
|
Management |
AECOM |
|
Corporate |
|
Total |
|
|||||||||||
Three Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
2,055,281 |
|
$ |
1,898,220 |
|
$ |
1,025,260 |
|
$ |
1,443 |
|
$ |
- |
|
$ |
4,980,204 |
|
|||
Cost of revenue |
|
1,912,726 |
|
|
1,881,901 |
|
|
976,333 |
|
|
- |
|
|
- |
|
|
4,770,960 |
|
|||
Gross profit |
|
142,555 |
|
|
16,319 |
|
|
48,927 |
|
|
1,443 |
|
|
- |
|
|
209,244 |
|
|||
Equity in earnings of joint ventures |
|
4,614 |
|
|
19,657 |
|
|
3,531 |
|
|
761 |
|
|
- |
|
|
28,563 |
|
|||
General and administrative expenses |
|
- |
|
|
- |
|
|
- |
|
|
(1,491 |
) |
|
(36,043 |
) |
|
(37,534 |
) |
|||
Loss on disposal activities |
|
- |
|
|
(7,404 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(7,404 |
) |
|||
Income (loss) from operations |
$ |
147,169 |
|
$ |
28,572 |
|
$ |
52,458 |
|
$ |
713 |
|
$ |
(36,043 |
) |
$ |
192,869 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit as a % of revenue |
|
6.9 |
% |
|
0.9% |
|
|
4.8 |
% |
|
- |
|
|
- |
|
|
4.2% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three Months Ended June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
2,105,219 |
|
$ |
2,106,720 |
|
$ |
935,981 |
|
$ |
- |
|
$ |
- |
|
$ |
5,147,920 |
|
|||
Cost of revenue |
|
1,989,093 |
|
|
2,097,586 |
|
|
876,062 |
|
|
- |
|
|
- |
|
|
4,962,741 |
|
|||
Gross profit |
|
116,126 |
|
|
9,134 |
|
|
59,919 |
|
|
- |
|
|
- |
|
|
185,179 |
|
|||
Equity in earnings of joint ventures |
|
4,275 |
|
|
2,276 |
|
|
6,312 |
|
|
- |
|
|
- |
|
|
12,863 |
|
|||
General and administrative expenses |
|
- |
|
|
- |
|
|
- |
|
|
(3,682 |
) |
|
(31,477 |
) |
|
(35,159 |
) |
|||
Loss on disposal activities |
|
- |
|
|
(2,149 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2,149 |
) |
|||
Income (loss) from operations |
$ |
120,401 |
|
$ |
9,261 |
|
$ |
66,231 |
|
$ |
(3,682 |
) |
$ |
(31,477 |
) |
$ |
160,734 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit as a % of revenue |
|
5.5 |
% |
|
0.4% |
|
|
6.4 |
% |
|
- |
|
|
- |
|
|
3.6% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nine Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
6,185,757 |
|
$ |
5,830,523 |
|
$ |
3,034,578 |
|
$ |
6,863 |
|
$ |
- |
|
$ |
15,057,721 |
|
|||
Cost of revenue |
|
5,797,783 |
|
|
5,794,286 |
|
|
2,890,433 |
|
|
- |
|
|
- |
|
|
14,482,502 |
|
|||
Gross profit |
|
387,974 |
|
|
36,237 |
|
|
144,145 |
|
|
6,863 |
|
|
- |
|
|
575,219 |
|
|||
Equity in earnings of joint ventures |
|
14,023 |
|
|
34,290 |
|
|
10,720 |
|
|
7,997 |
|
|
- |
|
|
67,030 |
|
|||
General and administrative expenses |
|
- |
|
|
- |
|
|
- |
|
|
(4,899 |
) |
|
(105,968 |
) |
|
(110,867 |
) |
|||
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(79,170 |
) |
|
(79,170 |
) |
|||
Loss on disposal activities |
|
- |
|
|
(7,404 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(7,404 |
) |
|||
Income (loss) from operations |
$ |
401,997 |
|
$ |
63,123 |
|
$ |
154,865 |
|
$ |
9,961 |
|
$ |
(185,138 |
) |
|
444,808 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit as a % of revenue |
|
6.3 |
% |
|
0.6% |
|
|
4.8 |
% |
|
- |
|
|
- |
|
|
3.8% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contracted backlog |
$ |
9,417,899 |
|
$ |
10,698,250 |
|
$ |
3,074,039 |
|
$ |
- |
|
$ |
- |
|
$ |
23,190,188 |
|
|||
Awarded backlog |
|
6,843,304 |
|
|
11,615,928 |
|
|
15,098,012 |
|
|
- |
|
|
- |
|
|
33,557,244 |
|
|||
Unconsolidated JV backlog |
|
- |
|
|
1,377,747 |
|
|
740,447 |
|
|
- |
|
|
- |
|
|
2,118,194 |
|
|||
Total backlog |
$ |
16,261,203 |
|
$ |
23,691,925 |
|
$ |
18,912,498 |
|
$ |
- |
|
$ |
- |
|
$ |
58,865,626 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nine Months Ended June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
6,051,864 |
|
$ |
6,120,549 |
|
$ |
2,677,249 |
|
$ |
- |
|
$ |
- |
|
$ |
14,849,662 |
|
|||
Cost of revenue |
|
5,737,658 |
|
|
6,097,631 |
|
|
2,551,770 |
|
|
- |
|
|
- |
|
|
14,387,059 |
|
|||
Gross profit |
|
314,206 |
|
|
22,918 |
|
|
125,479 |
|
|
- |
|
|
- |
|
|
462,603 |
|
|||
Equity in earnings of joint ventures |
|
14,500 |
|
|
16,890 |
|
|
24,231 |
|
|
- |
|
|
- |
|
|
55,621 |
|
|||
General and administrative expenses |
|
- |
|
|
- |
|
|
- |
|
|
(9,169 |
) |
|
(90,877 |
) |
|
(100,046 |
) |
|||
Loss on disposal activities |
|
- |
|
|
(2,149) |
|
|
- |
|
|
- |
|
|
- |
|
|
(2,149) |
|
|||
Impairment of assets held for sale, including goodwill |
|
- |
|
|
(168,178 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(168,178 |
) |
|||
Income (loss) from operations |
$ |
328,706 |
|
$ |
(130,519 |
) |
$ |
149,710 |
|
$ |
(9,169 |
) |
$ |
(90,877 |
) |
$ |
247,851 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit as a % of revenue |
|
5.2 |
% |
|
0.4% |
|
|
4.7 |
% |
|
- |
|
|
- |
|
|
3.1% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contracted backlog |
$ |
9,326,176 |
|
$ |
10,558,903 |
|
$ |
3,212,884 |
|
$ |
- |
|
$ |
- |
|
$ |
23,097,963 |
|
|||
Awarded backlog |
|
7,338,587 |
|
|
4,935,679 |
|
|
15,284,218 |
|
|
- |
|
|
- |
|
|
27,558,484 |
|
|||
Unconsolidated JV backlog |
|
- |
|
|
2,190,808 |
|
|
946,732 |
|
|
- |
|
|
- |
|
|
3,137,540 |
|
|||
Total backlog |
$ |
16,664,763 |
|
$ |
17,685,390 |
|
$ |
19,443,834 |
|
$ |
- |
|
$ |
- |
|
$ |
53,793,987 |
|
|||
AECOM |
|
||||||||||||||||||
Regulation G Information |
|
||||||||||||||||||
($ in millions) |
|
||||||||||||||||||
Reconciliation of Revenue to Amounts Provided by Acquired Companies |
|||||||||||||||||||
|
Three Months Ended June 30, 2019 |
|
Nine Months Ended June 30, 2019 |
|
|||||||||||||||
|
Total |
|
Provided by |
|
Excluding |
|
Total |
|
Provided by |
|
Excluding |
|
|||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
AECOM Consolidated |
$ |
4,980.2 |
|
$ |
- |
|
$ |
4,980.2 |
|
$ |
15,057.7 |
|
$ |
35.8 |
|
$ |
15,021.9 |
|
|
Design & Consulting Services |
|
2,055.3 |
|
|
- |
|
|
2,055.3 |
|
|
6,185.7 |
|
|
- |
|
|
6,185.7 |
|
|
Construction Services |
|
1,898.2 |
|
|
- |
|
|
1,898.2 |
|
|
5,830.5 |
|
|
35.8 |
|
|
5,794.7 |
|
|
Management Services |
|
1,025.3 |
|
|
- |
|
|
1,025.3 |
|
|
3,034.6 |
|
|
- |
|
|
3,034.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Attributable to AECOM to EBITDA and to Adjusted EBITDA |
|
||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|
|
||||||||||||
|
Jun 30, |
|
Mar 31, |
|
Jun 30, |
|
Jun 30, |
|
Jun 30, |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to AECOM |
$ |
60.9 |
|
$ |
77.9 |
|
$ |
83.7 |
|
$ |
52.5 |
|
$ |
213.1 |
|
|
|
Income tax expense (benefit) |
|
33.1 |
|
|
20.9 |
|
|
36.6 |
|
|
(38.4 |
) |
|
23.9 |
|
|
|
Income attributable to AECOM before income taxes |
|
94.0 |
|
|
98.8 |
|
|
120.3 |
|
|
14.1 |
|
|
237.0 |
|
|
|
Depreciation and amortization expense1 |
|
68.0 |
|
|
66.4 |
|
|
66.1 |
|
|
212.5 |
|
|
196.8 |
|
|
|
Interest income2 |
|
(2.3 |
) |
|
(3.0 |
) |
|
(3.5 |
) |
|
(7.5 |
) |
|
(9.2 |
) |
|
|
Interest expense3 |
|
52.7 |
|
|
55.4 |
|
|
53.3 |
|
|
196.9 |
|
|
162.2 |
|
|
|
EBITDA |
$ |
212.4 |
|
$ |
217.6 |
|
$ |
236.2 |
|
$ |
416.0 |
|
$ |
586.8 |
|
|
|
Transaction-related expenses |
|
- |
|
|
4.4 |
|
|
4.7 |
|
|
- |
|
|
9.1 |
|
|
|
Non-core operating losses (income) |
|
18.7 |
|
|
1.1 |
|
|
(0.1 |
) |
|
39.9 |
|
|
16.0 |
|
|
|
Impairment of assets held for sale, including goodwill |
|
- |
|
|
- |
|
|
- |
|
|
168.2 |
|
|
- |
|
|
|
Acquisition and integration-related items |
|
(6.5 |
) |
|
(3.7 |
) |
|
(3.8 |
) |
|
(6.5 |
) |
|
(11.4 |
) |
|
|
Restructuring costs |
|
- |
|
|
15.9 |
|
|
- |
|
|
- |
|
|
79.2 |
|
|
|
Loss on disposal activities |
|
2.1 |
|
|
- |
|
|
7.4 |
|
|
2.1 |
|
|
7.4 |
|
|
|
FX gain from forward currency contract |
|
- |
|
|
- |
|
|
- |
|
|
(9.1 |
) |
|
- |
|
|
|
Depreciation expense included in non-core operating losses and acquisition and integration items above |
|
(3.7 |
) |
|
(0.2 |
) |
|
(0.2 |
) |
|
(7.5 |
) |
|
(0.6 |
) |
|
|
Adjusted EBITDA |
$ |
223.0 |
|
$ |
235.1 |
|
$ |
244.2 |
|
$ |
603.1 |
|
$ |
686.5 |
|
|
|
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: |
|
||||||||
|
Jun 30, 2018 |
|
Mar 31, 2019 |
|
Jun 30, 2019 |
|
||||
Short-term debt |
$ |
47.4 |
|
$ |
48.4 |
|
$ |
44.9 |
|
|
Current portion of long-term debt |
|
125.6 |
|
|
109.9 |
|
|
114.7 |
|
|
Long-term debt, gross |
|
3,756.7 |
|
|
3,775.6 |
|
|
3,692.9 |
|
|
Total debt excluding unamortized debt issuance costs |
|
3,929.7 |
|
|
3,933.9 |
|
|
3,852.5 |
|
|
Less: Total cash and cash equivalents |
|
801.4 |
|
|
826.9 |
|
|
793.6 |
|
|
Net debt |
$ |
3,128.3 |
|
$ |
3,107.0 |
|
$ |
3,058.9 |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
|
|||||||||||||||||||
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
|||||||||||||
|
Jun 30, |
|
Mar 31, |
|
Jun 30, |
|
|
|
Jun 30, |
|
Jun 30, |
|
|
|||||||
Net cash provided by (used in) operating activities |
$ |
71.9 |
|
$ |
107.4 |
|
$ |
76.9 |
|
|
|
$ |
242.7 |
|
$ |
(16.1 |
) |
|
||
Capital expenditures, net |
|
(23.5 |
) |
|
(22.5 |
) |
|
(24.7 |
) |
|
|
|
(65.7 |
) |
|
(69.1 |
) |
|
||
Free cash flow |
$ |
48.4 |
|
$ |
84.9 |
|
$ |
52.2 |
|
|
|
$ |
177.0 |
|
$ |
(85.2 |
) |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended Sep 30, |
|
|||||||||||
|
|
2015 |
|
|
2016 |
|
|
2017 |
|
|
2018 |
|
|
Net cash provided by operating activities |
$ |
764.4 |
|
$ |
814.2 |
|
$ |
696.7 |
|
$ |
774.6 |
|
|
Capital expenditures, net |
|
(69.4 |
) |
|
(136.8 |
) |
|
(78.5 |
) |
|
(86.9 |
) |
|
Free cash flow |
$ |
695.0 |
|
$ |
677.4 |
|
$ |
618.2 |
|
$ |
687.7 |
|
|
|
|
|
|
|
|
|
|
|
AECOM |
|
||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
Jun 30, |
|
Mar 31, |
|
Jun 30, |
|
Jun 30, |
|
Jun 30, |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income from Operations to Adjusted Income from Operations |
|
||||||||||||||
Income from operations |
$ |
160.8 |
|
$ |
168.0 |
|
$ |
192.9 |
|
$ |
247.9 |
|
$ |
444.8 |
|
Transaction-related expenses |
|
- |
|
|
4.4 |
|
|
4.7 |
|
|
- |
|
|
9.1 |
|
Non-core operating losses (income) |
|
18.5 |
|
|
1.1 |
|
|
(0.1 |
) |
|
39.7 |
|
|
16.0 |
|
Impairment of assets held for sale, including goodwill |
|
- |
|
|
- |
|
|
- |
|
|
168.2 |
|
|
- |
|
Acquisition and integration-related items |
|
(7.9 |
) |
|
(4.1 |
) |
|
(4.2 |
) |
|
(7.9 |
) |
|
(12.6 |
) |
Restructuring costs |
|
- |
|
|
15.9 |
|
|
- |
|
|
- |
|
|
79.2 |
|
Loss on disposal activities |
|
2.1 |
|
|
- |
|
|
7.4 |
|
|
2.1 |
|
|
7.4 |
|
Amortization of intangible assets |
|
28.4 |
|
|
25.8 |
|
|
25.7 |
|
|
89.0 |
|
|
77.2 |
|
Adjusted income from operations |
$ |
201.9 |
|
$ |
211.1 |
|
$ |
226.4 |
|
$ |
539.0 |
|
$ |
621.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Before Income Taxes to Adjusted Income Before Income Taxes |
|
||||||||||||||
Income before income tax expense (benefit) |
$ |
108.2 |
|
$ |
114.4 |
|
$ |
142.0 |
|
$ |
53.4 |
|
$ |
287.9 |
|
Transaction-related expenses |
|
- |
|
|
4.4 |
|
|
4.7 |
|
|
- |
|
|
9.1 |
|
Non-core operating losses (income) |
|
18.6 |
|
|
1.1 |
|
|
(0.1 |
) |
|
39.8 |
|
|
16.0 |
|
Impairment of assets held for sale, including goodwill |
|
- |
|
|
- |
|
|
- |
|
|
168.2 |
|
|
- |
|
Acquisition and integration-related items |
|
(7.9 |
) |
|
(4.1 |
) |
|
(4.2 |
) |
|
(7.9 |
) |
|
(12.6 |
) |
Restructuring costs |
|
- |
|
|
15.9 |
|
|
- |
|
|
- |
|
|
79.2 |
|
Loss on disposal activities |
|
2.1 |
|
|
- |
|
|
7.4 |
|
|
2.1 |
|
|
7.4 |
|
Amortization of intangible assets |
|
28.4 |
|
|
25.8 |
|
|
25.7 |
|
|
89.0 |
|
|
77.2 |
|
FX gain from forward currency contract |
|
- |
|
|
- |
|
|
- |
|
|
(9.1 |
) |
|
- |
|
Financing charges in interest expense |
|
2.6 |
|
|
2.4 |
|
|
2.4 |
|
|
49.7 |
|
|
7.2 |
|
Adjusted income before income tax expense (benefit) |
$ |
152.0 |
|
$ |
159.9 |
|
$ |
177.9 |
|
$ |
385.2 |
|
$ |
471.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Taxes to Adjusted Income Taxes |
|
||||||||||||||
Income tax expense (benefit) |
$ |
33.1 |
|
$ |
20.9 |
|
$ |
36.6 |
|
$ |
(38.4 |
) |
$ |
23.9 |
|
Tax effect of the above adjustments† |
|
2.3 |
|
|
13.0 |
|
|
5.8 |
|
|
34.3 |
|
|
47.3 |
|
Revaluation of deferred taxes and one-time tax repatriation charges associated with U.S. tax reform |
|
- |
|
|
- |
|
|
- |
|
|
41.7 |
|
|
1.5 |
|
Valuation allowances and other tax only items |
|
- |
|
|
(1.3 |
) |
|
(4.0 |
) |
|
- |
|
|
26.8 |
|
Adjusted income tax expense |
$ |
35.4 |
|
$ |
32.6 |
|
$ |
38.4 |
|
$ |
37.6 |
|
$ |
99.5 |
|
† 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. |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Noncontrolling Interests to Adjusted Noncontrolling Interests |
|
||||||||||||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax |
$ |
(14.2 |
) |
$ |
(15.6 |
) |
$ |
(21.7 |
) |
$ |
(39.3 |
) |
$ |
(50.9 |
) |
Acquisition and integration-related items, net of tax |
|
1.4 |
|
|
0.4 |
|
|
0.4 |
|
|
1.4 |
|
|
1.2 |
|
Amortization of intangible assets included in NCI, net of tax |
|
(2.8 |
) |
|
(3.2 |
) |
|
(2.9 |
) |
|
(8.6 |
) |
|
(9.1 |
) |
Adjusted noncontrolling interests in income of consolidated subsidiaries, |
$ |
(15.6 |
) |
$ |
(18.4 |
) |
$ |
(24.2 |
) |
$ |
(46.5 |
) |
$ |
(58.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Attributable to AECOM to Adjusted Net Income Attributable to AECOM |
|
||||||||||||||
Net income attributable to AECOM |
$ |
60.9 |
|
$ |
77.9 |
|
$ |
83.7 |
|
$ |
52.5 |
|
$ |
213.1 |
|
Transaction-related expenses |
|
- |
|
|
4.4 |
|
|
4.7 |
|
|
- |
|
|
9.1 |
|
Non-core operating losses (income) |
|
18.5 |
|
|
1.1 |
|
|
(0.1 |
) |
|
39.7 |
|
|
16.0 |
|
Impairment of assets held for sale, including goodwill |
|
- |
|
|
- |
|
|
- |
|
|
168.2 |
|
|
- |
|
Acquisition and integration-related items |
|
(6.5 |
) |
|
(3.7 |
) |
|
(3.8 |
) |
|
(6.5 |
) |
|
(11.4 |
) |
Restructuring costs |
|
- |
|
|
15.9 |
|
|
- |
|
|
- |
|
|
79.2 |
|
Loss on disposal activities |
|
2.1 |
|
|
- |
|
|
7.4 |
|
|
2.1 |
|
|
7.4 |
|
Amortization of intangible assets |
|
28.4 |
|
|
25.8 |
|
|
25.7 |
|
|
89.0 |
|
|
77.2 |
|
FX gain from forward currency contract |
|
- |
|
|
- |
|
|
- |
|
|
(9.1 |
) |
|
- |
|
Financing charges in interest expense |
|
2.6 |
|
|
2.4 |
|
|
2.4 |
|
|
49.7 |
|
|
7.2 |
|
Tax effect of the above adjustments† |
|
(2.3 |
) |
|
(13.0 |
) |
|
(5.8 |
) |
|
(34.3 |
) |
|
(47.3 |
) |
Revaluation of deferred taxes and one-time tax repatriation charges associated with U.S. tax reform |
|
- |
|
|
- |
|
|
- |
|
|
(41.7 |
) |
|
(1.5 |
) |
Valuation allowances and other tax only items |
|
- |
|
|
1.3 |
|
|
4.0 |
|
|
- |
|
|
(26.8 |
) |
Amortization of intangible assets included in NCI, net of tax |
|
(2.8 |
) |
|
(3.2 |
) |
|
(2.9 |
) |
|
(8.6 |
) |
|
(9.1 |
) |
Adjusted net income attributable to AECOM |
$ |
100.9 |
|
$ |
108.9 |
|
$ |
115.3 |
|
$ |
301.0 |
|
$ |
313.1 |
|
† 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. |
AECOM |
|
||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||
Jun 30, |
Mar 31, |
Jun 30, |
Jun 30, |
Jun 30, |
|||||||||||||||||||||||||
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share |
|||||||||||||||||||||||||||||
Net income attributable to AECOM – per diluted share |
$ |
0.37 |
|
$ |
0.49 |
|
$ |
0.52 |
|
$ |
0.32 |
|
$ |
1.34 |
|
||||||||||||||
Per diluted share adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Transaction-related expenses |
|
- |
|
|
0.03 |
|
|
0.03 |
|
|
- |
|
|
0.06 |
|
||||||||||||||
Non-core operating losses |
|
0.11 |
|
|
0.01 |
|
|
- |
|
|
0.24 |
|
|
0.10 |
|
||||||||||||||
Impairment of assets held for sale, including goodwill |
|
- |
|
|
- |
|
|
- |
|
|
1.04 |
|
|
- |
|
||||||||||||||
Acquisition and integration-related items |
|
(0.04 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
|
(0.07 |
) |
||||||||||||||
Restructuring costs |
|
- |
|
|
0.10 |
|
|
- |
|
|
- |
|
|
0.50 |
|
||||||||||||||
Loss on disposal activities |
|
0.01 |
|
|
- |
|
|
0.05 |
|
|
0.01 |
|
|
0.05 |
|
||||||||||||||
Amortization of intangible assets |
|
0.18 |
|
|
0.16 |
|
|
0.16 |
|
|
0.55 |
|
|
0.48 |
|
||||||||||||||
FX gain from forward currency contract |
|
- |
|
|
- |
|
|
- |
|
|
(0.06 |
) |
|
- |
|
||||||||||||||
Financing charges in interest expense |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.31 |
|
|
0.05 |
|
||||||||||||||
Tax effect of the above adjustments† |
|
(0.01 |
) |
|
(0.09 |
) |
|
(0.05 |
) |
|
(0.21 |
) |
|
(0.30 |
) |
||||||||||||||
Revaluation of deferred taxes and one-time tax repatriation charges associated with U.S. tax reform |
|
- |
|
|
- |
|
|
- |
|
|
(0.26 |
) |
|
(0.01 |
) |
||||||||||||||
Valuation allowances and other tax only items |
|
- |
|
|
0.01 |
|
|
0.03 |
|
|
- |
|
|
(0.17 |
) |
||||||||||||||
Amortization of intangible assets included in NCI, net of tax |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.05 |
) |
|
(0.06 |
) |
||||||||||||||
Adjusted net income attributable to AECOM – per diluted share |
$ |
0.62 |
|
$ |
0.69 |
|
$ |
0.72 |
|
$ |
1.85 |
|
$ |
1.97 |
|
||||||||||||||
Weighted average shares outstanding – diluted |
|
163.2 |
|
|
158.4 |
|
|
159.8 |
|
|
162.4 |
|
|
159.3 |
|
||||||||||||||
† 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. |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Reconciliation of EBITDA to Adjusted Income from Operations |
|
||||||||||||||||||||||||||||
EBITDA(1) |
$ |
212.4 |
|
$ |
217.6 |
|
$ |
236.2 |
|
$ |
416.0 |
|
$ |
586.8 |
|
|
|||||||||||||
Transaction-related expenses |
|
- |
|
|
4.4 |
|
|
4.7 |
|
|
- |
|
|
9.1 |
|
|
|||||||||||||
Non-core operating losses (income) |
|
18.7 |
|
|
1.1 |
|
|
(0.1 |
) |
|
39.9 |
|
|
16.0 |
|
|
|||||||||||||
Impairment of assets held for sale, including goodwill |
|
- |
|
|
- |
|
|
- |
|
|
168.2 |
|
|
- |
|
|
|||||||||||||
Acquisition and integration-related items |
|
(6.5 |
) |
|
(3.7 |
) |
|
(3.8 |
) |
|
(6.5 |
) |
|
(11.4 |
) |
|
|||||||||||||
Restructuring costs |
|
- |
|
|
15.9 |
|
|
- |
|
|
- |
|
|
79.2 |
|
|
|||||||||||||
Loss on disposal activities |
|
2.1 |
|
|
- |
|
|
7.4 |
|
|
2.1 |
|
|
7.4 |
|
|
|||||||||||||
FX gain from forward currency contract |
|
- |
|
|
- |
|
|
- |
|
|
(9.1 |
) |
|
- |
|
|
|||||||||||||
Depreciation expense included in non-core operating losses and acquisition and integration expenses above |
|
(3.7 |
) |
|
(0.2 |
) |
|
(0.2 |
) |
|
(7.5 |
) |
|
(0.6 |
) |
|
|||||||||||||
Adjusted EBITDA |
$ |
223.0 |
|
$ |
235.1 |
|
$ |
244.2 |
|
$ |
603.1 |
|
$ |
686.5 |
|
|
|||||||||||||
Other income |
|
(2.7 |
) |
|
(4.3 |
) |
|
(4.8 |
) |
|
(17.5 |
) |
|
(12.7 |
) |
|
|||||||||||||
FX gain from forward currency contract |
|
- |
|
|
- |
|
|
- |
|
|
9.1 |
|
|
- |
|
|
|||||||||||||
Interest income(2) |
|
2.3 |
|
|
3.0 |
|
|
3.5 |
|
|
7.5 |
|
|
9.2 |
|
|
|||||||||||||
Depreciation(3) |
|
(36.3 |
) |
|
(41.3 |
) |
|
(40.5 |
) |
|
(109.7 |
) |
|
(120.7 |
) |
|
|||||||||||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax* |
|
14.2 |
|
|
15.7 |
|
|
21.6 |
|
|
39.3 |
|
|
50.9 |
|
|
|||||||||||||
Acquisition and integration-related items included in NCI, net of tax |
|
(1.4 |
) |
|
(0.4 |
) |
|
(0.4 |
) |
|
(1.4 |
) |
|
(1.2 |
) |
|
|||||||||||||
Amortization of intangible assets included in NCI, net of tax |
|
2.8 |
|
|
3.3 |
|
|
2.8 |
|
|
8.6 |
|
|
9.1 |
|
|
|||||||||||||
Adjusted income from operations |
$ |
201.9 |
|
$ |
211.1 |
|
$ |
226.4 |
|
$ |
539.0 |
|
$ |
621.1 |
|
|
|||||||||||||
(1) See Reconciliation of Net Income Attributable to AECOM to EBITDA; (2) Included in other income; (3)Excludes depreciation from non-core operating losses, and acquisition and integration expenses |
AECOM |
|
||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||||||||||||||||||
|
Jun 30, |
|
Mar 31, |
|
Jun 30, |
|
Jun 30, |
|
Jun 30, |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Reconciliation of Segment Income from Operations to Adjusted Income from Operations |
|
|
|
|
|
|
|
||||||||||||||||||||||||
Design & Consulting Services Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income from operations |
$ |
120.4 |
|
$ |
135.3 |
|
$ |
147.2 |
|
$ |
328.7 |
|
$ |
402.0 |
|
|
|||||||||||||||
Non-core operating losses (income) |
|
0.7 |
|
|
(1.2 |
) |
|
(2.0 |
) |
|
1.9 |
|
|
(2.3 |
) |
|
|||||||||||||||
Amortization of intangible assets |
|
6.4 |
|
|
6.1 |
|
|
6.0 |
|
|
18.8 |
|
|
18.1 |
|
|
|||||||||||||||
Adjusted income from operations |
$ |
127.5 |
|
$ |
140.2 |
|
$ |
151.2 |
|
$ |
349.4 |
|
$ |
417.8 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction Services Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) from operations |
$ |
9.3 |
|
$ |
23.6 |
|
$ |
28.5 |
|
$ |
(130.5 |
) |
$ |
63.1 |
|
|
|||||||||||||||
Transaction-related expenses |
|
- |
|
|
4.4 |
|
|
4.5 |
|
|
- |
|
|
8.9 |
|
|
|||||||||||||||
Acquisition and integration-related items |
|
(7.9 |
) |
|
(4.1 |
) |
|
(4.2 |
) |
|
(7.9 |
) |
|
(12.6 |
) |
|
|||||||||||||||
Non-core operating losses |
|
17.9 |
|
|
2.3 |
|
|
2.5 |
|
|
37.9 |
|
|
18.9 |
|
|
|||||||||||||||
Impairment of assets held for sale, including goodwill |
|
- |
|
|
- |
|
|
- |
|
|
168.2 |
|
|
- |
|
|
|||||||||||||||
Loss on disposal activities |
|
2.1 |
|
|
- |
|
|
7.4 |
|
|
2.1 |
|
|
7.4 |
|
|
|||||||||||||||
Amortization of intangible assets |
|
12.3 |
|
|
10.2 |
|
|
10.3 |
|
|
40.9 |
|
|
30.7 |
|
|
|||||||||||||||
Adjusted income from operations |
$ |
33.7 |
|
$ |
36.4 |
|
$ |
49.0 |
|
$ |
110.7 |
|
$ |
116.4 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Management Services Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income from operations |
$ |
66.2 |
|
$ |
51.3 |
|
$ |
52.5 |
|
$ |
149.7 |
|
$ |
154.9 |
|
|
|||||||||||||||
Transaction-related expenses |
|
- |
|
|
- |
|
|
0.2 |
|
|
- |
|
|
0.2 |
|
|
|||||||||||||||
Non-core operating income |
|
- |
|
|
- |
|
|
(0.6 |
) |
|
- |
|
|
(0.6 |
) |
|
|||||||||||||||
Amortization of intangible assets |
|
9.7 |
|
|
9.5 |
|
|
9.4 |
|
|
29.3 |
|
|
28.4 |
|
|
|||||||||||||||
Adjusted income from operations |
$ |
75.9 |
|
$ |
60.8 |
|
$ |
61.5 |
|
$ |
179.0 |
|
$ |
182.9 |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AECOM Regulation G Information |
||||||||||
FY19 GAAP EPS Guidance based on Adjusted EPS Guidance |
||||||||||
|
Fiscal Year End 2019 |
|||||||||
(all figures approximate) |
|
|
|
|
|
|
|
|||
GAAP EPS Guidance |
$1.89 to 2.18 |
|||||||||
Adjusted EPS Excludes: |
||||||||||
Amortization of intangible assets |
|
|
$0.56 |
|
||||||
Acquisition and integration-related items |
|
|
($0.09) |
|
||||||
FY19 restructuring |
|
|
$0.49 |
|
||||||
Financing charges in interest expense |
|
|
$0.06 |
|
||||||
Year-to-date transaction-related expenses |
|
|
$0.06 |
|
||||||
Year-to-date non-core operating losses |
|
|
$0.10 |
|
||||||
Year-to-date loss on disposal |
|
|
$0.05 |
|
||||||
Tax effect of the above items* |
|
|
($0.37) |
|
||||||
Tax expense associated with U.S. tax reform |
|
($0.14) |
|
|||||||
Adjusted EPS Guidance |
|
|
$2.60 to $2.90 |
|
||||||
*The adjusted tax expense differs from the GAAP tax expense based on the deductibility and tax rate applied to each of the adjustments.
FY19 GAAP Net Income Guidance based on Adjusted EBITDA Guidance |
||||||||
|
Fiscal Year End 2019 |
|||||||
(in millions, all figures approximate) |
|
|
|
|
|
|
|
|
GAAP Net Income Attributable to AECOM Guidance* |
$302 to 348 |
|||||||
Adjusted Net Income Attributable to AECOM Excludes: |
|
|||||||
Amortization of intangible assets, net of NCI |
|
|
$89 |
|
||||
Acquisition and integration-related items |
|
|
($15) |
|
||||
FY19 restructuring |
|
|
$79 |
|
||||
Financing charges in interest expense |
|
|
$10 |
|
||||
Year-to-date transaction-related expenses |
|
|
$9 |
|
||||
Year-to-date non-core operating losses |
|
|
$16 |
|
||||
Year-to-date loss on disposal |
|
|
$7 |
|
||||
Tax effect of the above items** |
|
|
($59) |
|
||||
Tax expense associated with U.S. tax reform |
|
($22) |
|
|||||
Adjusted Net Income Attributable to AECOM |
|
|
$416 to $463 |
|
||||
Adjusted EBITDA Excludes: |
|
|
|
|
||||
Adjusted interest expense |
|
|
$200 |
|
||||
Depreciation |
|
|
$150 |
|
||||
Taxes |
|
|
$150 |
|
||||
Adjusted EBITDA Guidance |
|
|
$920 to $960 |
|
||||
*Calculated based on the mid-point of AECOM’s fiscal year 2019 EPS guidance.
**The adjusted tax expense differs from the GAAP tax expense based on the deductibility and tax rate applied to each of the adjustments.
Note: the components in this table may not sum to the total due to rounding.
FY19 GAAP Tax Rate Guidance based on Adjusted Tax Rate Guidance |
|||||||
(all figures approximate) |
Fiscal Year End 2019 |
||||||
|
|
|
|
|
|
|
|
GAAP Tax Rate Guidance |
|
|
|
14% |
|||
Tax rate impact from adjustments to GAAP earnings |
|
|
8% |
||||
Tax rate impact from inclusion of NCI deduction |
|
|
3% |
||||
Effective Tax Rate for Adjusted Earnings Guidance |
25% |
||||||
FY19 GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance |
||||||||
|
Fiscal Year End 2019 |
|||||||
(in millions, all figures approximate) |
|
|
|
|
|
|
|
|
GAAP Interest Expense Guidance |
|
|
|
$220 |
|
|||
Financing charges in interest expense |
|
|
$10 |
|
||||
Interest income |
|
|
$10 |
|
||||
Adjusted Interest Expense Guidance |
$200 |
|
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190806005291/en/
Source:
Investors:
Will Gabrielski
Vice President, Investor Relations
213.593.8208
William.Gabrielski@aecom.com
Media:
Brendan Ranson-Walsh
Vice President, Global Communications & Corporate Responsibility
213.996.2367
Brendan.Ranson-Walsh@aecom.com