News Release
|
Third Quarter Fiscal 2021 |
Year-to-Date Fiscal 2021 |
||||||||||||||
(from Continuing Operations; $ in millions, except EPS) |
As |
Adjusted1 |
As |
Adjusted |
As |
Adjusted1 |
As |
Adjusted |
||||||||
Revenue |
|
-- |
7% |
-- |
|
-- |
3% |
-- |
||||||||
Net Service Revenue (NSR)2 |
-- |
|
-- |
1% |
-- |
|
-- |
(1%) |
||||||||
Operating Income |
|
|
35% |
14% |
|
|
45% |
11% |
||||||||
Segment Operating Margin3 (NSR) |
-- |
14.1% |
-- |
+90 bps |
-- |
13.4% |
-- |
+130 bps |
||||||||
Net Income |
|
|
(69%) |
23% |
|
|
17% |
21% |
||||||||
EPS (Fully Diluted) |
|
|
(66%) |
33% |
|
|
25% |
29% |
||||||||
EBITDA4 |
-- |
|
-- |
15% |
-- |
|
-- |
12% |
||||||||
Operating Cash Flow |
|
-- |
72% |
-- |
|
-- |
NM |
-- |
||||||||
Free Cash Flow5 |
-- |
|
-- |
8% |
-- |
|
-- |
NM |
||||||||
Backlog |
|
-- |
(4%) |
-- |
|
|
|
|
Third Quarter and Year-to-Date Fiscal 2021 Highlights
- As compared to the prior year, third quarter revenue increased by 7% to
$3.4 billion , operating income increased by 35% to$160 million , the operating margin increased by 100 basis points to 4.7%, net income decreased by 69% to$28 million and diluted earnings per share decreased by 66% to$0.19 . Net income included$122 million of pre-tax costs related to the completed tender and final redemption of all of the Company’s senior notes due 2024. - Net service revenue2 (NSR) of
$1.5 billion in the third quarter increased by 1% and included a second consecutive quarter of accelerating growth in the Company’s design business to 3%; Construction Management NSR declined as expected, however Construction Management backlog increased sequentially. - The segment adjusted1 operating margin3 on NSR2 increased by 90 basis points to 14.1% in the third quarter and set a new quarterly high, reflecting operating efficiencies, strong execution and growth of higher-margin projects, as well as increased investments in growth and innovation.
- Adjusted1 EBITDA4 in the third quarter increased by 15% to
$214 million and adjusted diluted earnings per share increased by 33% to a new quarterly record of$0.73 ; both metrics were ahead of the Company’s expectations. - Total wins of
$3.7 billion resulted in a 1.1 book-to-burn ratio6; backlog in the Company’s design business increased by 8% over the prior year, including 7% contracted backlog growth, and total backlog of$39.7 billion continues to provide long-term visibility.
Fiscal 2021 Financial Guidance
AECOM is increasing its adjusted1 EBITDA4 guidance to between$810 million and$830 million and increasing its diluted adjusted1 EPS guidance for the third consecutive quarter to between$2.75 and$2.85 , which would reflect 10% and 30% growth from fiscal 2020 at the mid-point of the respective ranges.
– This guidance incorporates the Company’s year-to-date adjusted EBITDA outperformance, as well as the benefits of already completed share repurchases and lower interest expense from the recently executed debt refinancing actions.
– Other assumptions incorporated into guidance include:
- An average fully diluted share count for the full year of approximately 150 million, which only reflects repurchases completed to date.
AECOM Capital earnings of between$5 million to$10 million .
- The Company continues to expect free cash flow5 of between
$425 million and$625 million , which is consistent with the highly cash generative nature of its Professional Services business, strong year-to-date performance, and confidence in fourth quarter cash flow.
Cash Flow, Balance Sheet and Capital Allocation Update
- Third quarter operating cash flow was
$320 million and free cash flow5 was$295 million ; fiscal year-to-date operating cash flow was$387 million and free cash flow was$284 million .
– This performance represents the highest cash flow in the past four years for the respective periods, reflecting a focus on delivering more consistent cash flow phasing to enhance shareholder value and returns on capital.
- The Company completed a tender and redemption of all senior notes due 2024, further strengthening its balance sheet with lower cost debt and extending the maturity profile with no material maturities until 2026.
- Since the beginning of
September 2020 , the Company has executed$930 million of stock repurchases representing approximately 19 million shares, or approximately 12% of shares outstanding as compared to the beginning of the repurchase program. - The Company currently has
$525 million of capacity remaining under its$1 billion stock repurchase authorization and remains committed to executing its capital allocation policy, which includes returning to investors substantially all available cash flow, which is after investments are made in the business, and maintaining leverage7 below 3.0x.
“With our strong results, we have extended our track record of delivering on our financial and strategic commitments, and we are well positioned to deliver even greater growth in fiscal 2022 and beyond as a result of our Think and Act Globally strategy and strengthening trends across many of our markets,” said
“The benefits of our Think and Act Globally strategy are apparent in our results as the organization coalesces around a set of strategic priorities that is translating to growth,” said
“Our year-to-date performance has exceeded expectations and sets the foundation for continued success,” said
Business Segments
Revenue in the third quarter was
Operating income increased by 2% over the prior year to
International
Revenue in the third quarter was
Operating income increased by 41% over the prior year to
Discontinued Operations
In
Balance Sheet
As of
Tax Rate
The effective tax rate was (112.6%) in the third quarter. On an adjusted basis, the effective tax rate was 28.5%. The adjusted tax rate was derived by re-computing the annual effective tax rate on earnings from adjusted net income.8 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.
Reiterated Long-Term Financial Targets
Conference Call
1 Excludes the impact of non-operating items, such as non-core operating losses and transaction-related expenses, restructuring costs and other items. See Regulation G Information for a reconciliation of non-GAAP measures to the comparable GAAP measures.
2 Revenue, less pass-through revenue.
3 Reflects segment operating performance, excluding
4 Net income before interest expense, tax expense, depreciation and amortization.
5 Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from equipment disposals. Free cash flow in the prior year period includes the receipt of a favorable
6 Book-to-burn ratio is defined as the dollar amount of wins divided by revenue recognized during the period, including revenue related to work performed in unconsolidated joint ventures.
7 Gross leverage is comprised of EBITDA as defined in the Company’s credit agreement dated
8 Inclusive of non-controlling interest deduction and adjusted for financing charges in interest expense, the amortization of intangible assets and is based on continuing operations.
9 Return on invested capital, or ROIC, is calculated as the sum of adjusted net income as presented in the Company’s Regulation G Information and interest expense, net of interest income, divided by average quarterly invested capital as defined as the sum of
About
Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, coronavirus impacts, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of
Non-GAAP Financial Information
This press release contains financial information calculated other than in accordance with
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. The Company is unable to reconcile its non-GAAP long-term financial targets due to uncertainties in these non-operating items as well as other adjustments to net income.
|
||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
|
|
% |
|
|
% |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
$ |
3,189,679 |
|
$ |
3,408,357 |
|
6.9 |
% |
$ |
9,671,026 |
|
$ |
9,987,085 |
|
3.3 |
% |
||||||
Cost of revenue |
|
3,004,600 |
|
|
3,206,823 |
|
6.7 |
% |
|
9,151,334 |
|
|
9,405,922 |
|
2.8 |
% |
||||||
Gross profit |
|
185,079 |
|
|
201,534 |
|
8.9 |
% |
|
519,692 |
|
|
581,163 |
|
11.8 |
% |
||||||
Equity in earnings of joint ventures |
|
8,573 |
|
|
8,270 |
|
(3.5 |
)% |
|
32,006 |
|
|
23,628 |
|
(26.2 |
)% |
||||||
General and administrative expenses |
|
(54,482 |
) |
|
(36,340 |
) |
(33.3 |
)% |
|
(139,133 |
) |
|
(110,707 |
) |
(20.4 |
)% |
||||||
Restructuring costs |
|
(20,300 |
) |
|
(12,971 |
) |
(36.1 |
)% |
|
(96,438 |
) |
|
(34,755 |
) |
(64.0 |
)% |
||||||
Income from operations |
|
118,870 |
|
|
160,493 |
|
35.0 |
% |
|
316,127 |
|
|
459,329 |
|
45.3 |
% |
||||||
Other income |
|
3,119 |
|
|
4,482 |
|
43.7 |
% |
|
9,557 |
|
|
11,812 |
|
23.6 |
% |
||||||
Interest expense |
|
(34,925 |
) |
|
(149,038 |
) |
326.7 |
% |
|
(112,413 |
) |
|
(212,489 |
) |
89.0 |
% |
||||||
Income before income tax (benefit) expense |
|
87,064 |
|
|
15,937 |
|
(81.7 |
)% |
|
213,271 |
|
|
258,652 |
|
21.3 |
% |
||||||
Income tax (benefit) expense |
|
(7,184 |
) |
|
(17,938 |
) |
149.7 |
% |
|
30,326 |
|
|
42,811 |
|
41.2 |
% |
||||||
Income from continuing operations |
|
94,248 |
|
|
33,875 |
|
(64.1 |
)% |
|
182,945 |
|
|
215,841 |
|
18.0 |
% |
||||||
Loss from discontinued operations |
|
(126 |
) |
|
(15,502 |
) |
12203.2 |
% |
|
(112,695 |
) |
|
(119,168 |
|
) |
5.7 |
% |
|||||
Net income |
|
94,122 |
|
|
18,373 |
|
(80.5 |
)% |
|
70,250 |
|
|
96,673 |
|
37.6 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Net income attributable to noncontrolling interests |
|
(3,138 |
) |
|
(5,901 |
) |
88.0 |
% |
|
(12,428 |
) |
|
(16,160 |
) |
30.0 |
% |
||||||
Net income attributable to noncontrolling interests |
|
(1,645 |
) |
|
(941 |
) |
(42.8 |
)% |
|
(14,005 |
) |
|
(3,495 |
) |
(75.0 |
)% |
||||||
Net income attributable to noncontrolling interests |
|
(4,783 |
) |
|
(6,842 |
) |
43.0 |
% |
|
(26,433 |
) |
|
(19,655 |
) |
(25.6 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Net income attributable to |
|
91,110 |
|
|
27,974 |
|
(69.3 |
)% |
|
170,517 |
|
|
199,681 |
|
17.1 |
% |
||||||
Net loss attributable to |
|
(1,771 |
) |
|
(16,443 |
) |
828.5 |
% |
|
(126,700 |
) |
|
(122,663 |
) |
(3.2 |
)% |
||||||
Net income attributable to |
$ |
89,339 |
|
$ |
11,531 |
|
(87.1 |
)% |
$ |
43,817 |
|
$ |
77,018 |
|
75.8 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss) attributable to |
|
|
|
|
|
|
||||||||||||||||
Basic |
|
|
|
|
|
|
||||||||||||||||
Continuing operations |
$ |
0.57 |
|
$ |
0.19 |
|
(66.7 |
)% |
$ |
1.07 |
|
$ |
1.35 |
|
26.2 |
% |
||||||
Discontinued operations |
|
(0.01 |
) |
|
(0.11 |
) |
1000.0 |
% |
|
(0.79 |
) |
|
(0.83 |
) |
5.1 |
% |
||||||
Basic earnings per share |
$ |
0.56 |
|
$ |
0.08 |
|
(85.7 |
)% |
$ |
0.28 |
|
$ |
0.52 |
|
85.7 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Diluted |
|
|
|
|
|
|
||||||||||||||||
Continuing operations |
$ |
0.56 |
|
$ |
0.19 |
|
(66.1 |
)% |
$ |
1.06 |
|
$ |
1.32 |
|
24.5 |
% |
||||||
Discontinued operations |
|
(0.01 |
) |
|
(0.11 |
) |
1000.0 |
% |
|
(0.79 |
) |
|
(0.81 |
) |
2.5 |
% |
||||||
Diluted earnings per share |
$ |
0.55 |
|
$ |
0.08 |
|
(85.5 |
)% |
$ |
0.27 |
|
$ |
0.51 |
|
88.9 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
||||||||||||||||
Basic |
|
160,119 |
|
|
146,109 |
|
(8.7 |
)% |
|
158,667 |
|
|
148,434 |
|
(6.4 |
)% |
||||||
Diluted |
|
161,835 |
|
|
148,859 |
|
(8.0 |
)% |
|
161,070 |
|
|
150,707 |
|
(6.4 |
)% |
|
||||||
|
|
|
|
|||
Balance Sheet Information: |
|
|
|
|||
Total cash and cash equivalents |
$ |
1,708,332 |
|
$ |
1,049,030 |
|
Accounts receivable and contract assets – net |
|
4,532,255 |
|
|
4,167,663 |
|
Working capital |
|
1,439,912 |
|
|
568,462 |
|
Total debt, excluding unamortized debt issuance costs |
|
2,085,017 |
|
|
2,233,872 |
|
Total assets |
|
12,998,951 |
|
|
11,963,091 |
|
Total |
|
3,292,558 |
|
|
2,708,037 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
International |
|
|
|
Corporate |
|
Total |
||||||||||
Three Months Ended |
||||||||||||||||||||
Revenue |
|
$ |
2,618,393 |
|
|
$ |
789,338 |
|
|
$ |
626 |
|
|
$ |
- |
|
|
$ |
3,408,357 |
|
Cost of revenue |
|
|
2,457,818 |
|
|
|
749,005 |
|
|
|
- |
|
|
|
- |
|
|
|
3,206,823 |
|
Gross profit |
|
|
160,575 |
|
|
|
40,333 |
|
|
|
626 |
|
|
|
- |
|
|
|
201,534 |
|
Equity in earnings of joint ventures |
|
|
3,239 |
|
|
|
5,137 |
|
|
|
(106 |
) |
|
|
- |
|
|
|
8,270 |
|
General and administrative expenses |
|
|
- |
|
|
|
- |
|
|
|
(2,409 |
) |
|
|
(33,931 |
) |
|
|
(36,340 |
) |
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(12,971 |
) |
|
|
(12,971 |
) |
Income (loss) from operations |
|
$ |
163,814 |
|
|
$ |
45,470 |
|
|
$ |
(1,889 |
) |
|
$ |
(46,902 |
) |
|
$ |
160,493 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit as a % of revenue |
|
|
6.1 |
% |
|
|
5.1 |
% |
|
|
- |
|
|
|
- |
|
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended |
||||||||||||||||||||
Revenue |
|
$ |
2,471,537 |
|
|
$ |
717,947 |
|
|
$ |
195 |
|
|
$ |
- |
|
|
$ |
3,189,679 |
|
Cost of revenue |
|
|
2,316,286 |
|
|
|
688,314 |
|
|
|
- |
|
|
|
- |
|
|
|
3,004,600 |
|
Gross profit |
|
|
155,251 |
|
|
|
29,633 |
|
|
|
195 |
|
|
|
- |
|
|
|
185,079 |
|
Equity in earnings of joint ventures |
|
|
5,553 |
|
|
|
2,688 |
|
|
|
332 |
|
|
|
- |
|
|
|
8,573 |
|
General and administrative expenses |
|
|
- |
|
|
|
- |
|
|
|
(1,094 |
) |
|
|
(53,388 |
) |
|
|
(54,482 |
) |
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(20,300 |
) |
|
|
(20,300 |
) |
Income (loss) from operations |
|
$ |
160,804 |
|
|
$ |
32,321 |
|
|
$ |
(567 |
) |
|
$ |
(73,688 |
) |
|
$ |
118,870 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit as a % of revenue |
|
|
6.3 |
% |
|
|
4.1 |
% |
|
|
- |
|
|
|
- |
|
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended |
||||||||||||||||||||
Revenue |
|
$ |
7,644,054 |
|
|
$ |
2,341,391 |
|
|
$ |
1,640 |
|
|
$ |
- |
|
|
$ |
9,987,085 |
|
Cost of revenue |
|
|
7,186,772 |
|
|
|
2,219,150 |
|
|
|
- |
|
|
|
- |
|
|
|
9,405,922 |
|
Gross profit |
|
|
457,282 |
|
|
|
122,241 |
|
|
|
1,640 |
|
|
|
- |
|
|
|
581,163 |
|
Equity in earnings of joint ventures |
|
|
7,624 |
|
|
|
11,148 |
|
|
|
4,856 |
|
|
|
- |
|
|
|
23,628 |
|
General and administrative expenses |
|
|
- |
|
|
|
- |
|
|
|
(5,770 |
) |
|
|
(104,937 |
) |
|
|
(110,707 |
) |
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(34,755 |
) |
|
|
(34,755 |
) |
Income from operations |
|
$ |
464,906 |
|
|
$ |
133,389 |
|
|
$ |
726 |
|
|
$ |
(139,692 |
) |
|
$ |
459,329 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit as a % of revenue |
|
|
6.0 |
% |
|
|
5.2 |
% |
|
|
- |
|
|
|
- |
|
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contracted backlog |
|
$ |
15,072,850 |
|
|
$ |
4,011,633 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
19,084,483 |
|
Awarded backlog |
|
|
19,291,834 |
|
|
|
995,155 |
|
|
|
- |
|
|
|
- |
|
|
|
20,286,989 |
|
Unconsolidated JV backlog |
|
|
315,116 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
315,116 |
|
Total backlog |
|
$ |
34,679,800 |
|
|
$ |
5,006,788 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
39,686,588 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended |
||||||||||||||||||||
Revenue |
|
$ |
7,399,213 |
|
|
$ |
2,270,577 |
|
|
$ |
1,236 |
|
|
$ |
- |
|
|
$ |
9,671,026 |
|
Cost of revenue |
|
|
6,968,897 |
|
|
|
2,182,437 |
|
|
|
- |
|
|
|
- |
|
|
|
9,151,334 |
|
Gross profit |
|
|
430,316 |
|
|
|
88,140 |
|
|
|
1,236 |
|
|
|
- |
|
|
|
519,692 |
|
Equity in earnings of joint ventures |
|
|
17,323 |
|
|
|
8,672 |
|
|
|
6,011 |
|
|
|
- |
|
|
|
32,006 |
|
General and administrative expenses |
|
|
- |
|
|
|
- |
|
|
|
(5,272 |
) |
|
|
(133,861 |
) |
|
|
(139,133 |
) |
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(96,438 |
) |
|
|
(96,438 |
) |
Income from operations |
|
$ |
447,639 |
|
|
$ |
96,812 |
|
|
$ |
1,975 |
|
|
$ |
(230,299 |
) |
|
$ |
316,127 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit as a % of revenue |
|
|
5.8 |
% |
|
|
3.9 |
% |
|
|
- |
|
|
|
- |
|
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contracted backlog |
|
$ |
16,067,997 |
|
|
$ |
3,477,266 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
19,545,263 |
|
Awarded backlog |
|
|
20,184,074 |
|
|
|
1,061,140 |
|
|
|
- |
|
|
|
- |
|
|
|
21,245,214 |
|
Unconsolidated JV backlog |
|
|
664,286 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
664,286 |
|
Total backlog |
|
$ |
36,916,357 |
|
|
$ |
4,538,406 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
41,454,763 |
|
|
|||||||||||||||
Reconciliation of Revenue to Net Service Revenue (NSR) |
|||||||||||||||
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
2,471.6 |
|
$ |
2,468.3 |
|
$ |
2,618.5 |
|
$ |
7,399.2 |
|
$ |
7,644.1 |
|
Less: Pass-through revenue |
|
1,548.6 |
|
|
1,544.7 |
|
|
1,728.0 |
|
|
4,637.4 |
|
|
4,967.0 |
|
Net service revenue |
$ |
923.0 |
|
$ |
923.6 |
|
$ |
890.5 |
|
$ |
2,761.8 |
|
$ |
2,677.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
717.9 |
|
$ |
796.5 |
|
$ |
789.3 |
|
$ |
2,270.6 |
|
$ |
2,341.4 |
|
Less: Pass-through revenue |
|
128.4 |
|
|
151.8 |
|
|
156.4 |
|
|
421.2 |
|
|
450.8 |
|
Net service revenue |
$ |
589.5 |
|
$ |
644.7 |
|
$ |
632.9 |
|
$ |
1,849.4 |
|
$ |
1,890.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Performance (excludes ACAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,189.5 |
|
$ |
3,264.8 |
|
$ |
3,407.8 |
|
$ |
9,669.8 |
|
$ |
9,985.5 |
|
Less: Pass-through revenue |
|
1,677.0 |
|
|
1,696.5 |
|
|
1,884.4 |
|
|
5,058.6 |
|
|
5,417.8 |
|
Net service revenue |
$ |
1,512.5 |
|
$ |
1,568.3 |
|
$ |
1,523.4 |
|
$ |
4,611.2 |
|
$ |
4,567.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,189.7 |
|
$ |
3,265.5 |
|
$ |
3,408.4 |
|
$ |
9,671.0 |
|
$ |
9,987.1 |
|
Less: Pass-through revenue |
|
1,677.0 |
|
|
1,696.5 |
|
|
1,884.4 |
|
|
5,058.6 |
|
|
5,417.8 |
|
Net service revenue |
$ |
1,512.7 |
|
$ |
1,569.0 |
|
$ |
1,524.0 |
|
$ |
4,612.4 |
|
$ |
4,569.3 |
Reconciliation of Total Debt to Net Debt |
|||||||||
|
|
Balances at: |
|||||||
|
|
|
|
||||||
Short-term debt |
$ |
10.4 |
$ |
4.7 |
$ |
2.9 |
|||
Current portion of long-term debt |
|
14.3 |
|
42.2 |
|
52.4 |
|||
Long-term debt, gross |
|
2,071.6 |
|
2,079.7 |
|
2,178.6 |
|||
Total debt excluding unamortized debt issuance costs |
|
2,096.3 |
|
2,126.6 |
|
2,233.9 |
|||
Less: Total cash and cash equivalents |
|
1,331.3 |
|
934.9 |
|
1,049.0 |
|||
Net debt |
$ |
765.0 |
$ |
1,191.7 |
$ |
1,184.9 |
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
|||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities |
$ |
186.3 |
|
|
$ |
59.2 |
|
|
$ |
320.3 |
|
|
$ |
(319.7 |
) |
|
$ |
386.6 |
|
||
Capital expenditures, net |
|
(36.3 |
) |
|
|
(55.9 |
) |
|
|
(25.1 |
) |
|
|
(80.8 |
) |
|
|
(102.3 |
) |
||
Working capital adjustment from sale of Management Services business |
|
122.0 |
|
|
|
- |
|
|
|
- |
|
|
|
122.0 |
|
|
|
- |
|
||
Free cash flow |
$ |
272.0 |
|
|
$ |
3.3 |
|
|
$ |
295.2 |
|
|
$ |
(278.5 |
) |
|
$ |
284.3 |
|
|
||||||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Income from Operations to Adjusted Income from Operations |
||||||||||||||||||||
Income from operations |
$ |
118.8 |
|
|
$ |
157.6 |
|
|
$ |
160.5 |
|
|
$ |
316.1 |
|
|
$ |
459.3 |
|
|
Non-core operating losses & transaction related expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5.6 |
|
|
|
- |
|
|
Accelerated depreciation of project management tool |
|
11.3 |
|
|
|
- |
|
|
|
- |
|
|
|
22.6 |
|
|
|
- |
|
|
Restructuring costs |
|
20.3 |
|
|
|
8.8 |
|
|
|
13.0 |
|
|
|
96.4 |
|
|
|
34.8 |
|
|
Amortization of intangible assets |
|
5.9 |
|
|
|
5.4 |
|
|
|
5.2 |
|
|
|
18.2 |
|
|
|
15.9 |
|
|
Adjusted income from operations |
$ |
156.3 |
|
|
$ |
171.8 |
|
|
$ |
178.7 |
|
|
$ |
458.9 |
|
|
$ |
510.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Income from Continuing Operations Before Taxes to Adjusted Income from Continuing Operations Before Taxes |
||||||||||||||||||||
Income from continuing operations before tax expense |
$ |
87.0 |
|
|
$ |
128.3 |
|
|
$ |
16.0 |
|
|
$ |
213.2 |
|
|
$ |
258.7 |
|
|
Non-core operating losses & transaction related expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5.6 |
|
|
|
- |
|
|
Accelerated depreciation of project management tool |
|
11.3 |
|
|
|
- |
|
|
|
- |
|
|
|
22.6 |
|
|
|
- |
|
|
Restructuring costs |
|
20.3 |
|
|
|
8.8 |
|
|
|
13.0 |
|
|
|
96.4 |
|
|
|
34.8 |
|
|
Amortization of intangible assets |
|
5.9 |
|
|
|
5.4 |
|
|
|
5.2 |
|
|
|
18.2 |
|
|
|
15.9 |
|
|
Prepayment premium on debt |
|
- |
|
|
|
- |
|
|
|
117.5 |
|
|
|
- |
|
|
|
117.5 |
|
|
Financing charges in interest expense |
|
1.3 |
|
|
|
2.6 |
|
|
|
5.7 |
|
|
|
4.2 |
|
|
|
10.1 |
|
|
Adjusted income from continuing operations before tax expense |
$ |
125.8 |
|
|
$ |
145.1 |
|
|
$ |
157.4 |
|
|
$ |
360.2 |
|
|
$ |
437.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Income Taxes for Continuing Operations to Adjusted Income Taxes for Continuing Operations |
||||||||||||||||||||
Income tax (benefit) expense for continuing operations |
$ |
(7.2 |
) |
|
$ |
35.1 |
|
|
$ |
(17.8 |
) |
|
$ |
30.3 |
|
|
$ |
42.9 |
|
|
Tax effect of the above adjustments* |
|
9.9 |
|
|
|
4.6 |
|
|
|
34.5 |
|
|
|
36.5 |
|
|
|
44.6 |
|
|
Valuation allowances and other tax only items |
|
31.7 |
|
|
|
0.1 |
|
|
|
26.5 |
|
|
|
30.2 |
|
|
|
29.3 |
|
|
Adjusted income tax expense for continuing operations |
$ |
34.4 |
|
|
$ |
39.8 |
|
|
$ |
43.2 |
|
|
$ |
97.0 |
|
|
$ |
116.8 |
|
|
____________________ | ||||||||||||||||||||
* Adjusts income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Net Income Attributable to Noncontrolling Interests from Continuing Operations to Adjusted Net Income Attributable to Noncontrolling Interests from Continuing Operations |
||||||||||||||||||||
Net income attributable to noncontrolling interests from continuing operations |
$ |
(3.1 |
) |
|
$ |
(4.9 |
) |
|
$ |
(5.9 |
) |
|
$ |
(12.4 |
) |
|
$ |
(16.2 |
) |
|
Amortization of intangible assets included in NCI, net of tax |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
Adjusted net income attributable to noncontrolling interests from continuing operations |
$ |
(3.2 |
) |
|
$ |
(5.1 |
) |
|
$ |
(6.0 |
) |
|
$ |
(12.7 |
) |
|
$ |
(16.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Net Income Attributable to |
||||||||||||||||||||
Net income attributable to |
$ |
91.1 |
|
|
$ |
88.3 |
|
|
$ |
27.9 |
|
|
$ |
170.5 |
|
|
$ |
199.6 |
|
|
Non-core operating losses & transaction related expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5.6 |
|
|
|
- |
|
|
Accelerated depreciation of project management tool |
|
11.3 |
|
|
|
- |
|
|
|
- |
|
|
|
22.6 |
|
|
|
- |
|
|
Restructuring costs |
|
20.3 |
|
|
|
8.8 |
|
|
|
13.0 |
|
|
|
96.4 |
|
|
|
34.8 |
|
|
Amortization of intangible assets |
|
5.9 |
|
|
|
5.4 |
|
|
|
5.2 |
|
|
|
18.2 |
|
|
|
15.9 |
|
|
Prepayment premium on debt |
|
- |
|
|
|
- |
|
|
|
117.5 |
|
|
|
- |
|
|
|
117.5 |
|
|
Financing charges in interest expense |
|
1.3 |
|
|
|
2.6 |
|
|
|
5.7 |
|
|
|
4.2 |
|
|
|
10.1 |
|
|
Tax effect of the above adjustments* |
|
(9.8 |
) |
|
|
(4.6 |
) |
|
|
(34.5 |
) |
|
|
(36.5 |
) |
|
|
(44.6 |
) |
|
Valuation allowances and other tax only items |
|
(31.7 |
) |
|
|
(0.1 |
) |
|
|
(26.5 |
) |
|
|
(30.2 |
) |
|
|
(29.3 |
) |
|
Amortization of intangible assets included in NCI, net of tax |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
Adjusted net income attributable to |
$ |
88.3 |
|
|
$ |
100.2 |
|
|
$ |
108.2 |
|
|
$ |
250.5 |
|
|
$ |
303.6 |
||
___________________ | ||||||||||||||||||||
* 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 |
|
||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
|
|
2021 |
|
|
|
|||||||||||||||
|
|
|
|
|
||||||||||||||||
Reconciliation of Net Income Attributable to |
||||||||||||||||||||
Net income attributable to |
$ |
0.56 |
|
$ |
0.59 |
|
$ |
0.19 |
|
$ |
1.06 |
|
$ |
1.32 |
|
|||||
Per diluted share adjustments: |
|
|
|
|
||||||||||||||||
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
0.03 |
|
|
- |
|
|||||
Accelerated depreciation of project management tool |
|
0.07 |
|
|
- |
|
|
- |
|
|
0.14 |
|
|
- |
|
|||||
Restructuring costs |
|
0.13 |
|
|
0.06 |
|
|
0.09 |
|
|
0.60 |
|
|
0.23 |
|
|||||
Amortization of intangible assets |
|
0.04 |
|
|
0.04 |
|
|
0.03 |
|
|
0.11 |
|
|
0.11 |
|
|||||
Prepayment premium on debt |
|
- |
|
|
- |
|
|
0.79 |
|
|
- |
|
|
0.78 |
|
|||||
Financing charges in interest expense |
|
0.01 |
|
|
0.02 |
|
|
0.04 |
|
|
0.03 |
|
|
0.07 |
|
|||||
Tax effect of the above adjustments* |
|
(0.06 |
) |
|
(0.04 |
) |
|
(0.23 |
) |
|
(0.22 |
) |
|
(0.31 |
) |
|||||
Valuation allowances and other tax only items |
|
(0.20 |
) |
|
- |
|
|
(0.18 |
) |
|
(0.19 |
) |
|
(0.19 |
) |
|||||
Adjusted net income attributable to |
$ |
0.55 |
|
$ |
0.67 |
|
$ |
0.73 |
|
$ |
1.56 |
|
$ |
2.01 |
|
|||||
Weighted average shares outstanding – basic |
|
160.1 |
|
|
147.8 |
|
|
146.1 |
|
|
158.7 |
|
|
148.4 |
|
|||||
Weighted average shares outstanding – diluted |
|
161.8 |
|
|
149.5 |
|
|
148.9 |
|
|
161.1 |
|
|
150.7 |
|
|||||
_____________________ | ||||||||||||||||||||
* 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 Net Income Attributable to |
||||||||||||||||||||
Net income attributable to |
$ |
91.1 |
|
$ |
88.3 |
|
$ |
27.9 |
|
$ |
170.5 |
|
$ |
199.6 |
|
|||||
Income tax (benefit) expense |
|
(7.2 |
) |
|
35.1 |
|
|
(17.8 |
) |
|
30.3 |
|
|
42.9 |
|
|||||
Depreciation and amortization1 |
|
51.3 |
|
|
41.1 |
|
|
49.5 |
|
|
141.1 |
|
|
130.0 |
|
|||||
Interest income2 |
|
(2.6 |
) |
|
(1.2 |
) |
|
(2.2 |
) |
|
(9.6 |
) |
|
(4.7 |
) |
|||||
Interest expense |
|
34.9 |
|
|
32.8 |
|
|
149.0 |
|
|
112.3 |
|
|
212.5 |
|
|||||
Amortized bank fees included in interest expense |
|
(1.3 |
) |
|
(2.6 |
) |
|
(5.8 |
) |
|
(4.6 |
) |
|
(10.2 |
) |
|||||
EBITDA |
$ |
166.2 |
|
$ |
193.5 |
|
$ |
200.6 |
|
$ |
440.0 |
|
$ |
570.1 |
|
|||||
Non-core operating losses & transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
5.6 |
|
|
- |
|
|||||
Restructuring costs |
|
20.3 |
|
|
8.8 |
|
|
13.0 |
|
|
96.5 |
|
|
34.8 |
|
|||||
Adjusted EBITDA |
$ |
186.5 |
|
$ |
202.3 |
|
$ |
213.6 |
|
$ |
542.1 |
|
$ |
604.9 |
|
|||||
Other income |
|
(3.2 |
) |
|
(3.4 |
) |
|
(4.5 |
) |
|
(9.6 |
) |
|
(11.8 |
) |
|||||
Depreciation1 |
|
(32.8 |
) |
|
(33.3 |
) |
|
(38.6 |
) |
|
(95.9 |
) |
|
(104.3 |
) |
|||||
Interest income2 |
|
2.6 |
|
|
1.2 |
|
|
2.2 |
|
|
9.6 |
|
|
4.7 |
|
|||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax |
|
3.1 |
|
|
4.8 |
|
|
5.9 |
|
|
12.4 |
|
|
16.1 |
|
|||||
Amortization of intangible assets included in NCI, |
|
0.1 |
|
|
0.2 |
|
|
0.1 |
|
|
0.3 |
|
|
0.4 |
|
|||||
Adjusted income from operations |
$ |
156.3 |
|
$ |
171.8 |
|
$ |
178.7 |
|
$ |
458.9 |
|
$ |
510.0 |
|
|||||
_____________________ | ||||||||||||||||||||
1 Excludes depreciation from discontinued operations, non-core operating losses, and accelerated depreciation of project management tool; |
|
||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
|
2021 |
|
|
|
|||||||||||
|
|
|
|
|
||||||||||||
Reconciliation of Segment Income from Operations to Adjusted Income from Operations |
||||||||||||||||
Americas Segment: |
|
|
|
|
|
|||||||||||
Income from operations |
$ |
160.8 |
$ |
154.7 |
$ |
163.8 |
$ |
447.6 |
|
$ |
464.9 |
|||||
Amortization of intangible assets |
|
4.5 |
|
4.4 |
|
4.3 |
|
14.0 |
|
|
13.0 |
|||||
Adjusted income from operations |
$ |
165.3 |
$ |
159.1 |
$ |
168.1 |
$ |
461.6 |
|
$ |
477.9 |
|||||
|
|
|
|
|
|
|||||||||||
International Segment: |
|
|
|
|
|
|||||||||||
Income from operations |
$ |
32.3 |
$ |
45.8 |
$ |
45.5 |
$ |
96.8 |
|
$ |
133.4 |
|||||
Non-core operating losses & transaction related expenses |
|
- |
|
- |
|
- |
|
(0.1 |
) |
|
- |
|||||
Amortization of intangible assets |
|
1.4 |
|
1.0 |
|
0.9 |
|
4.2 |
|
|
2.9 |
|||||
Adjusted income from operations |
$ |
33.7 |
$ |
46.8 |
$ |
46.4 |
$ |
100.9 |
|
$ |
136.3 |
|||||
|
|
|
|
|
|
|||||||||||
Segment Performance (excludes ACAP): |
|
|
|
|
|
|||||||||||
Income from operations |
$ |
193.1 |
$ |
200.5 |
$ |
209.3 |
$ |
544.4 |
|
$ |
598.3 |
|||||
Non-core operating losses & transaction related expenses |
|
- |
|
- |
|
- |
|
(0.1 |
) |
|
- |
|||||
Amortization of intangible assets |
|
5.9 |
|
5.4 |
|
5.2 |
|
18.2 |
|
|
15.9 |
|||||
Adjusted income from operations |
$ |
199.0 |
$ |
205.9 |
$ |
214.5 |
$ |
562.5 |
|
$ |
614.2 |
FY2021 GAAP EPS Guidance based on Adjusted EPS Guidance |
||
(all figures approximate) |
Fiscal Year End 2021 |
|
GAAP EPS Guidance |
|
|
Adjusted EPS excludes: |
|
|
Amortization of intangible assets |
|
|
Amortization of deferred financing fees |
|
|
Prepayment premium on redemption of unsecured notes |
|
|
Restructuring |
|
|
Tax effect of the above items |
|
( |
|
|
( |
Adjusted EPS Guidance |
|
|
* Calculated based on the mid-point of AECOM’s fiscal year 2021 EPS guidance |
FY2021 GAAP Net Income Attributable to |
||
(in millions, all figures approximate) |
Fiscal Year End 2021 |
|
GAAP net income attributable to |
|
|
Adjusted net income attributable to |
|
|
Amortization of intangible assets |
|
|
Amortization of deferred financing fees |
|
|
Prepayment premium on redemption of unsecured notes |
|
|
Restructuring |
|
|
Tax effect of the above items |
( |
|
|
( |
|
Adjusted net income attributable to |
|
|
Adjusted EBITDA excludes: |
|
|
Adjusted interest expense, net |
|
|
Depreciation |
|
|
Income tax expense |
|
|
Adjusted EBITDA Guidance |
|
|
* Calculated based on the mid-point of AECOM’s fiscal year 2021 EPS guidance |
|
||
|
||
FY2021 GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance |
||
(in millions, all figures approximate) |
Fiscal Year End 2021 |
|
GAAP Interest Expense Guidance |
|
|
Financing charges in interest expense |
( |
|
Prepayment premium on redemption of unsecured notes |
( |
|
Interest income |
( |
|
Adjusted Interest Expense Guidance |
|
FY2021 GAAP Income Tax Guidance based on Adjusted Income Tax Guidance |
||
(in millions, all figures approximate) |
Fiscal Year End 2021 |
|
GAAP Income tax expense guidance |
|
|
Tax effect of adjusting items |
|
|
|
|
|
Adjusted income tax expense guidance |
|
|
Note: Variances in tables are due to rounding. |
FY2021 GAAP Operating Cash Flow Guidance based on Free Cash Flow Guidance |
||
(in millions, all figures approximate) |
Fiscal Year End 2021 |
|
Operating cash flow guidance |
|
|
Capital expenditures, net of proceeds from equipment disposals |
|
( |
Free cash flow guidance |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210809005698/en/
Investor Contact:
Senior Vice President, Finance, Treasurer
213.593.8208
William.Gabrielski@aecom.com
Media Contact:
Vice President,
213.996.2367
Brendan.Ranson-Walsh@aecom.com
Source: