News Release
($ in millions, except EPS) | As Reported | Adjusted (Non-GAAP) | As Reported YoY % Change | Adjusted YoY % Change | ||||||||
Revenue | $4,911 | - | 13% | - | ||||||||
Operating Income | $131 | $1581 | (9%) | (16%) | ||||||||
Net Income | $111 | $921 | 136% | 9% | ||||||||
EPS (Fully Diluted) | $0.69 | $0.571 | 130% | 8% | ||||||||
Operating Cash Flow | $52 | - | (32%) | - | ||||||||
Free Cash Flow | - | $342 | - | (40%) | ||||||||
Backlog | $48,790 | - | 11%3 | - | ||||||||
First Quarter 2018 Accomplishments:
- Organic4 revenue increased by 8% to a new all-time high and included growth in each of the DCS, CS and MS segments.
-
Wins of
$6.1 billion included book-to-burn5 ratios greater than 1.0 in all three segments, led by 1.5 and 1.2 in the higher-margin MS and DCS segments, respectively. -
Total backlog reached a new record of
$49 billion , which is an 11%3 year-over-year increase. -
Adjusted EBITDA1 as reported would have increased by 18%
after also excluding
$22 million of restructuring costs in the quarter and a$35 million benefit from a legal settlement in the year-ago period. -
Reiterating fiscal 2018 adjusted EBITDA1 guidance of
$910 million and adjusted EPS1 guidance of between$2.50 and $2.90 . -
The Company remains on track to achieve 2.5x net debt-to-EBITDA6
by the end of fiscal year 2018 and thereafter intends to return
substantially all free cash flow to investors under a
$1 billion stock repurchase authorization.
“We are capitalizing on market momentum and the benefits of our
investments in growth, as evidenced by continued strong organic revenue
performance, more than
“Our strong first quarter results have us on track with our full-year
financial goals, and we remain confident in creating substantial value
for our investors through the execution of our strategy and capital
allocation policy,” 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 first 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 first 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 first quarter was
Operating income was
Tax Rate
The effective tax rate in the first quarter was (61%). On an adjusted basis, the effective tax rate was (0.05%). The adjusted tax rate was derived by re-computing the expected annual effective tax rate on earnings from adjusted net income.7 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, and excluded the discrete items related to U.S. tax reform, as noted below.
Financial Impacts of Tax Reform
AECOM’s first quarter GAAP financial results included the following
impacts from discrete tax items resulting from the U.S. tax reform,
which was signed into law on
-
The revaluation of deferred tax assets and liabilities resulted in a
$113 million benefit. -
A one-time tax repatriation toll charge of
$71 million was accrued.
The impact from these discrete tax items was excluded from AECOM’s fiscal first quarter adjusted earnings per share and fiscal 2018 adjusted earnings per share guidance.
For the full year, the Company now expects an effective tax rate for adjusted earnings of approximately 20% compared to prior guidance of 21%. The reduction in the tax rate guidance reflects the benefit from a lower corporate tax rate on U.S. earnings for 9 months of the fiscal year, which will contribute to adjusted earnings per share.
Cash Flow
Operating cash flow for the first quarter was
Balance Sheet
As of
Financial Outlook
AECOM’s fiscal year 2018 financial guidance is as follows:
Fiscal Year 2018 Outlook | |||
Adjusted EBITDA1 | $910 million | ||
Adjusted EPS1 | $2.50 – $2.90 | ||
Free Cash Flow2 | $600 million – $800 million | ||
Interest Expense
(excluding amortization of deferred financing fees) |
$210 million | ||
Amortization8 | $90 million | ||
Full-Year Share Count | 162 million | ||
Effective Tax Rate for Adjusted Earnings7 | ~20% | ||
Capital Expenditures9 | $110 million | ||
Conference Call
1 Excluding acquisition and integration related expenses, financing charges in interest expense, the amortization of intangible assets, financial impacts associated with expected and actual dispositions of non-core businesses and assets, 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 Free cash flow is defined as cash flow from operations less capital expenditures net of proceeds from disposals.
3 On a constant-currency basis.
4 Organic growth is at constant currency and excludes revenue associated with actual and planned non-core asset and business dispositions. Results expressed in constant currency are presented excluding the impact from changes in currency exchange rates.
5 Book-to-burn ratio is defined as the amount of wins divided by revenue recognized during the period, including revenue related to work performed in unconsolidated joint ventures.
6 Net debt-to-EBITDA is comprised of EBITDA as defined in the Company’s credit agreement, which excludes stock-based compensation, and net debt as defined as total debt on the Company’s financial statements, net of cash and cash equivalents.
7 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.
8 Amortization of intangible assets expense includes the impact of amortization included in equity in earnings of joint ventures and non-controlling interests.
9 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, cash flows, tax rate, share count, interest expense, capital expenditures, amortization of intangible assets and financial fees, acquisition and integration expense, or other financial items; any statements of the plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements.
Important factors that could cause our actual results, performance and
achievements, or industry results to differ materially from estimates or
projections contained in our forward-looking statements include, but are
not limited to, the following: impacts of the Tax Cuts and Jobs Acts,
our business is cyclical and vulnerable to economic downturns and client
spending reductions; we are dependent on long-term government contracts
and subject to uncertainties related to government contract
appropriations; governmental agencies may modify, curtail or terminate
our contracts; government contracts are subject to audits and
adjustments of contractual terms; we may experience losses under
fixed-price contracts; we have limited control over operations run
through our joint venture entities; we may be liable for misconduct by
our employees or consultants or our failure to comply with laws or
regulations applicable to our business; we may not maintain adequate
surety and financial capacity; we are highly leveraged and may not be
able to service our debt and guarantees; we have exposure to political
and economic risks in different countries where we operate as well as
currency exchange rate fluctuations; we may not be able to retain and
recruit key technical and management personnel; we may be subject to
legal claims and we may have inadequate insurance coverage; we are
subject to environmental law compliance and we may have inadequate
nuclear indemnification; there may be unexpected adjustments and
cancellations related to our backlog; we are dependent on partners and
third parties who may fail to satisfy their obligations; we may not be
able to manage pension costs; we may face cybersecurity issues and data
loss; as well as other additional risks and factors that could cause
actual results to differ materially from our forward-looking statements
set forth in our reports filed with the
This press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”). In particular, the Company believes that non-GAAP financial measures such as adjusted EPS, adjusted EBITDA, adjusted operating income, adjusted tax rate, adjusted interest expense, organic revenue, and free cash flow also provide a meaningful perspective on its business results as the Company utilizes this information to evaluate and manage the business. We use adjusted EBITDA, net and operating income to exclude the impact of non-operating items, such as amortization expense, taxes, acquisition and integration expenses, and non-core operating losses. We use free cash flow to represent the cash generated after capital expenditures to maintain our business. Our non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of these non-GAAP measures is found in the Regulation G 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 length of the forecasted period and potential high variability, complexity and low visibility as to items that would be excluded from the GAAP measure in the relevant future period.
AECOM | |||||||||||
Consolidated Statement of Income | |||||||||||
(unaudited - in thousands, except per share data) | |||||||||||
Three Months Ended | |||||||||||
December 31, 2016 | December 31, 2017 | % Change | |||||||||
Revenue | $ | 4,358,349 | $ | 4,910,832 | 12.7% | ||||||
Cost of revenue | 4,188,376 | 4,774,680 | 14.0% | ||||||||
Gross profit | 169,973 | 136,152 | (19.9%) | ||||||||
Equity in earnings of joint ventures | 21,471 | 29,720 | 38.4% | ||||||||
General and administrative expenses | (32,639) | (34,670) | 6.2% | ||||||||
Acquisition & integration expenses | (15,412) | - | (100.0%) | ||||||||
Income from operations | 143,393 | 131,202 | (8.5%) | ||||||||
Other income | 860 | 2,283 | 165.5% | ||||||||
Interest expense | (53,637) | (56,165) | 4.7% | ||||||||
Income before income tax expense (benefit) | 90,616 | 77,320 | (14.7%) | ||||||||
Income tax expense (benefit) | 24,838 | (47,093) | NM | ||||||||
Net income | 65,778 | 124,413 | 89.1% | ||||||||
Noncontrolling interest in income of consolidated subsidiaries, net of tax | (18,599) | (13,099) | (29.6%) | ||||||||
Net income attributable to AECOM | $ | 47,179 | $ | 111,314 | 135.9% | ||||||
Net income attributable to AECOM per share: | |||||||||||
Basic | $ | 0.31 | $ | 0.70 | 125.8% | ||||||
Diluted | $ | 0.30 | $ | 0.69 | 130.0% | ||||||
Weighted average shares outstanding: | |||||||||||
Basic | 154,255 | 157,909 | 2.4% | ||||||||
Diluted | 157,993 | 161,847 | 2.4% | ||||||||
AECOM | |||||||||
Balance Sheet and Cash Flow Information | |||||||||
(unaudited - in thousands) | |||||||||
September 30, 2017 | December 31, 2017 | ||||||||
Balance Sheet Information: | |||||||||
Total cash and cash equivalents | $ | 802,362 | $ | 813,166 | |||||
Accounts receivable – net | 5,127,743 | 5,313,672 | |||||||
Working capital | 1,103,843 | 1,165,983 | |||||||
Total debt | 3,896,398 | 3,951,647 | |||||||
Total assets | 14,396,956 | 14,622,951 | |||||||
Total AECOM stockholders’ equity | 3,996,126 | 4,104,369 | |||||||
AECOM | |||||||||||||||||||||||||||||||||
Reportable Segments | |||||||||||||||||||||||||||||||||
(unaudited - in thousands) | |||||||||||||||||||||||||||||||||
Design & Consulting Services |
Construction Services |
Management Services |
AECOM Capital |
Corporate | Total | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2017 | |||||||||||||||||||||||||||||||||
Revenue | $ 1,941,900 |
$ 2,125,487 |
$ 843,445 | $ - | $ - | $ | 4,910,832 | ||||||||||||||||||||||||||
Cost of revenue | 1,864,054 | 2,098,408 | 812,218 | - | - | 4,774,680 | |||||||||||||||||||||||||||
Gross profit | 77,846 | 27,079 | 31,227 | - | - | 136,152 | |||||||||||||||||||||||||||
Equity in earnings of joint ventures | 7,462 | 13,406 | 8,852 | - | - | 29,720 | |||||||||||||||||||||||||||
General and administrative expenses | - | - | - | (2,607) | (32,063) | (34,670) | |||||||||||||||||||||||||||
Operating income (loss) | $ 85,308 | $ 40,485 | $ 40,079 | $ (2,607) | $ (32,063) | $ | 131,202 | ||||||||||||||||||||||||||
Gross profit as a % of revenue | 4.0% | 1.3% | 3.7% | - | - | 2.8% | |||||||||||||||||||||||||||
Contracted backlog | $ 8,605,057 | $ 11,666,660 | $ 3,118,359 | $ - | $ - | $ | 23,390,076 | ||||||||||||||||||||||||||
Awarded backlog | 7,863,929 | 5,030,502 | 9,140,923 | - | - | 22,035,354 | |||||||||||||||||||||||||||
Unconsolidated JV backlog | - | 2,451,868 | 912,987 | - | - | 3,364,855 | |||||||||||||||||||||||||||
Total backlog | $ 16,468,986 | $ 19,149,030 | $ 13,172,269 | $ - | $ - | $ | 48,790,285 | ||||||||||||||||||||||||||
|
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Three Months Ended December 31, 2016 | |||||||||||||||||||||||||||||||||
Revenue | $ 1,840,761 | $ 1,750,249 | $ 767,339 | $ - | $ - | $ | 4,358,349 | ||||||||||||||||||||||||||
Cost of revenue | 1,745,520 | 1,736,490 | 706,366 | - | - | 4,188,376 | |||||||||||||||||||||||||||
Gross profit | 95,241 | 13,759 | 60,973 | - | - | 169,973 | |||||||||||||||||||||||||||
Equity in earnings of joint ventures | 4,087 | 4,309 | 13,075 | - | - | 21,471 | |||||||||||||||||||||||||||
General and administrative expenses | - | - | - | (2,656) | (29,983) | (32,639) | |||||||||||||||||||||||||||
Acquisition & integration expenses | - | - | - | - | (15,412) | (15,412) | |||||||||||||||||||||||||||
Operating income (loss) | $ 99,328 | $ 18,068 | $ 74,048 | $ (2,656) | $ (45,395) | $ | 143,393 | ||||||||||||||||||||||||||
Gross profit as a % of revenue | 5.2% | 0.8% | 7.9% | - | - | 3.9% | |||||||||||||||||||||||||||
Contracted backlog | $ 8,114,279 | $ 13,068,598 | $ 3,835,127 | $ - | $ - | $ | 25,018,004 | ||||||||||||||||||||||||||
Awarded backlog | 6,390,269 | 4,129,593 | 4,759,598 | - | - | 15,279,460 | |||||||||||||||||||||||||||
Unconsolidated JV backlog | - | 2,558,035 | 979,080 | - | - | 3,537,115 | |||||||||||||||||||||||||||
Total backlog | $ 14,504,548 | $ 19,756,226 | $ 9,573,805 | $ - | $ - | $ | 43,834,579 | ||||||||||||||||||||||||||
AECOM Regulation G Information ($ in millions) |
||||||||||||
Reconciliation of Amounts Provided by Acquired Companies |
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Three Months Ended Dec 31, 2017 | ||||||||||||
Total | Provided by Acquired Companies | Excluding Effect of Acquired Companies | ||||||||||
Revenue: | ||||||||||||
AECOM Consolidated | $ | 4,910.8 | $ | 158.8 | $ | 4,752.0 | ||||||
Design & Consulting Services | 1,941.9 | - | 1,941.9 | |||||||||
Construction Services | 2,125.5 | 158.8 | 1,966.7 | |||||||||
Management Services | 843.4 | - | 843.4 | |||||||||
Reconciliation of Net Income Attributable to AECOM to EBITDA |
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Three months ended | ||||||||||||
Dec 31, 2016 | Sep 30, 2017 | Dec 31, 2017 | ||||||||||
Net income attributable to AECOM | $ | 47.2 | $ | 88.5 | $ | 111.3 | ||||||
Income tax expense (benefit) | 24.8 | 6.2 | (47.1) | |||||||||
Income attributable to AECOM before income taxes | 72.0 | 94.7 | 64.2 | |||||||||
Depreciation and amortization expense1 | 66.5 | 74.0 | 63.5 | |||||||||
Interest income2 | (0.7) | (1.8) | (1.8) | |||||||||
Interest expense3 | 50.4 | 50.8 | 53.3 | |||||||||
EBITDA | $ | 188.2 | $ | 217.7 | $ | 179.2 | ||||||
1 Includes the amount for noncontrolling interests in
consolidated subsidiaries 2 Included in other income 3 Excludes related amortization |
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Reconciliation of Total Debt to Net Debt |
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Balances at | ||||||||||||
Dec 31,
2016 |
Sep 30,
2017 |
Dec 31,
2017 |
||||||||||
Short-term debt | $ | 14.8 | $ | 1.2 | $ | 2.4 | ||||||
Current portion of long-term debt | 343.9 | 140.8 | 160.9 | |||||||||
Long-term debt, gross | 3,805.3 | 3,754.4 | 3,788.4 | |||||||||
Total debt excluding unamortized debt issuance costs | 4,164.0 | 3,896.4 | 3,951.7 | |||||||||
Less: Total cash and cash equivalents | 697.7 | 802.4 | 813.2 | |||||||||
Net Debt | $ | 3,466.3 | $ | 3,094.0 | $ | 3,138.5 | ||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
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Three Months Ended | ||||||||||||||||||||||||||||
Mar 31, 2015 | Jun 30, 2015 | Sep 30, 2015 | Dec 31, 2015 | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 50.0 | $ | 153.8 | $ | 278.0 | $ | 78.0 | $ | 113.2 | $ | 260.1 | $ | 362.9 | ||||||||||||||
Capital expenditures, net | (30.6) | (3.7) | (10.1) | (0.8) | (30.3) | (68.8) | (36.9) | |||||||||||||||||||||
Free Cash Flow | $ | 19.4 | $ | 150.1 | $ | 267.9 | $ | 77.2 | $ | 82.9 | $ | 191.3 | $ | 326.0 | ||||||||||||||
Three Months Ended | ||||||||||||||||||||
Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 77.5 | $ | (46.1) | $ | 413.9 | $ | 251.4 | $ | 52.4 | ||||||||||
Capital expenditures, net | (21.0) | (17.7) | (19.8) | (20.0) | (18.5) | |||||||||||||||
Free Cash Flow | $ | 56.5 | $ | (63.8) | $ | 394.1 | $ | 231.4 | $ | 33.9 |
Fiscal Years Ended Sep 30, | ||||||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||
Net cash provided by operating activities | $ | 433.4 | $ | 408.6 | $ | 360.6 | $ | 764.4 | $ | 814.2 | $ | 696.7 | ||||||||||||
Capital expenditures, net | (62.9) | (52.1) | (62.8) | (69.4) | (136.8) | (78.5) | ||||||||||||||||||
Free Cash Flow | $ | 370.5 | $ | 356.5 | $ | 297.8 | $ | 695.0 | $ | 677.4 | $ | 618.2 | ||||||||||||
AECOM | |||||||||||||||
Regulation G Information | |||||||||||||||
($ in millions, except per share data) | |||||||||||||||
Reconciliation of Income from Operations to Adjusted Income from Operations |
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Three Months Ended | |||||||||||||||
Dec 31, 2016 |
Sep 30, 2017 |
Dec 31, 2017 |
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Income from operations | $ | 143.4 | $ | 161.9 | $ | 131.2 | |||||||||
Non-core operating losses | 2.0 | 3.7 | - | ||||||||||||
Acquisition and integration expenses | 15.4 | 3.3 | - | ||||||||||||
Amortization of intangible assets | 27.4 | 30.1 | 26.9 | ||||||||||||
Adjusted income from operations | $ | 188.2 | $ | 199.0 | $ | 158.1 | |||||||||
Income before income tax expense (benefit) | $ | 90.6 | $ | 110.0 | $ | 77.3 | |||||||||
Non-core operating losses | 2.0 | 3.7 | - | ||||||||||||
Acquisition and integration expenses | 15.4 | 3.3 | - | ||||||||||||
Amortization of intangible assets | 27.4 | 30.1 | 26.9 | ||||||||||||
Financing charges in interest expense | 2.8 | 3.1 | 2.9 | ||||||||||||
Adjusted income before income tax expense | $ | 138.2 | $ | 150.2 | $ | 107.1 | |||||||||
Income tax expense (benefit) | $ | 24.8 | $ | 6.2 | $ | (47.1 | ) | ||||||||
Tax effect of the above adjustments† | 8.8 | 6.5 | 5.4 | ||||||||||||
Revaluation of deferred taxes and one-time tax repatriation | |||||||||||||||
charges associated with U.S. tax reform | - | - | 41.7 | ||||||||||||
Adjusted income tax expense | $ | 33.6 | $ | 12.7 | $ | - | |||||||||
† 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. |
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Noncontrolling interests in income of consolidated subsidiaries, net of tax | $ | (18.6 | ) | $ | (15.3 | ) | $ | (13.1 | ) | ||||||
Amortization of intangible assets included in NCI, net of tax | (2.4 | ) | (2.6 | ) | (2.5 | ) | |||||||||
Adjusted noncontrolling interests in income of consolidated subsidiaries, net of tax | $ | (21.0 | ) | $ | (17.9 | ) | $ | (15.6 | ) | ||||||
Reconciliation of Net Income to Adjusted Net Income |
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Net income attributable to AECOM | $ | 47.2 | $ | 88.5 | $ | 111.3 | |||||||||
Non-core operating losses | 2.0 | 3.7 | - | ||||||||||||
Acquisition and integration expenses | 15.4 | 3.3 | - | ||||||||||||
Amortization of intangible assets | 27.4 | 30.1 | 26.9 | ||||||||||||
Financing charges in interest expense | 2.8 | 3.1 | 2.9 | ||||||||||||
Tax effect of the above adjustments† | (8.8 | ) | (6.5 | ) | (5.4 | ) | |||||||||
Revaluation of deferred taxes and one-time tax repatriation | |||||||||||||||
charges associated with U.S. tax reform | - | - | (41.7 | ) | |||||||||||
Amortization of intangible assets included in NCI, net of tax | (2.4 | ) | (2.6 | ) | (2.5 | ) | |||||||||
Adjusted net income attributable to AECOM | $ | 83.6 | $ | 119.6 | $ | 91.5 | |||||||||
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share |
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Net income attributable to AECOM - per diluted share | $ | 0.30 | $ | 0.55 | $ | 0.69 | |||||||||
Per diluted share adjustments: | |||||||||||||||
Non-core operating losses | 0.01 | 0.02 | - | ||||||||||||
Acquisition and integration expenses | 0.10 | 0.02 | - | ||||||||||||
Amortization of intangible assets | 0.17 | 0.18 | 0.17 | ||||||||||||
Financing charges in interest expense | 0.02 | 0.02 | 0.02 | ||||||||||||
Tax effect of the above adjustments† | (0.05 | ) | (0.03 | ) | (0.03 | ) | |||||||||
Revaluation of deferred taxes and one-time tax repatriation | |||||||||||||||
charges associated with U.S. tax reform | - | - | (0.26 | ) | |||||||||||
Amortization of intangible assets included in NCI, net of tax | (0.02 | ) | (0.02 | ) | (0.02 | ) | |||||||||
Adjusted net income attributable to AECOM - per diluted shares | $ | 0.53 | $ | 0.74 | $ | 0.57 | |||||||||
Weighted average shares outstanding - Diluted | 158.0 | 161.1 | 161.8 | ||||||||||||
AECOM | |||||||||||||||
Regulation G Information | |||||||||||||||
($ in millions, except per share data) | |||||||||||||||
Reconciliation of EBITDA to Adjusted Income from Operations |
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Three Months Ended | |||||||||||||||
Dec 31, 2016 |
Sep 30, 2017 |
Dec 31, 2017 |
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EBITDA(1) | $ | 188.2 | $ | 217.7 | $ | 179.2 | |||||||||
Non-core operating losses | 2.0 | 3.7 | - | ||||||||||||
Acquisition and integration expenses | 15.4 | 3.3 | - | ||||||||||||
Depreciation expense included in acquisition and integration expense line above | (0.3 | ) | - | - | |||||||||||
Adjusted EBITDA | $ | 205.3 | $ | 224.7 | $ | 179.2 | |||||||||
Other income | (0.8 | ) | (2.4 | ) | (2.3 | ) | |||||||||
Interest income(2) | 0.7 | 1.8 | 1.8 | ||||||||||||
Depreciation(3) | (38.0 | ) | (43.0 | ) | (36.2 | ) | |||||||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax | 18.6 | 15.3 | 13.1 | ||||||||||||
Amortization of intangible assets included in NCI, net of tax | 2.4 | 2.6 | 2.5 | ||||||||||||
Adjusted income from operations | $ | 188.2 | $ | 199.0 | $ | 158.1 | |||||||||
(1) See Reconciliation of Net Income Attributable to
AECOM to EBITDA.
(2) Included in other income. (3) Excluding acquisition and integration related expenses. |
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Reconciliation of Segment Income from Operations to Adjusted Income from Operations |
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Segment Income from Operations | |||||||||||||||
Design & Consulting Services Segment: | |||||||||||||||
Income from operations | $ | 99.3 | $ | 106.1 | $ | 85.3 | |||||||||
Non-core operating losses | 2.0 | 3.8 | - | ||||||||||||
Amortization of intangible assets | 7.0 | 6.5 | 6.2 | ||||||||||||
Adjusted income from operations | $ | 108.3 | $ | 116.4 | $ | 91.5 | |||||||||
Construction Services Segment: | |||||||||||||||
Income from operations | $ | 18.1 | $ | 38.2 | $ | 40.5 | |||||||||
Amortization of intangible assets | 7.3 | 10.6 | 10.8 | ||||||||||||
Adjusted income from operations | $ | 25.4 | $ | 48.8 | $ | 51.3 | |||||||||
Management Services Segment: | |||||||||||||||
Income from operations | $ | 74.0 | $ | 48.3 | $ | 40.1 | |||||||||
Amortization of intangible assets | 13.1 | 13.1 | 9.9 | ||||||||||||
Adjusted income from operations | $ | 87.1 | $ | 61.4 | $ | 50.0 | |||||||||
AECOM Regulation G Information |
||||
FY18 GAAP EPS Guidance based on Adjusted EPS Guidance |
||||
Fiscal Year End 2018 | ||||
GAAP EPS Guidance | $2.28 to $2.68 | |||
Adjusted EPS Excludes: | ||||
Amortization of intangible assets | $0.56 | |||
Financing charges in interest expense | $0.10 | |||
Tax effect of the above items* | ($0.18) | |||
Revaluation of deferred taxes and one-time tax repatriation charges associated with U.S. tax reform | ($0.26) | |||
Adjusted EPS Guidance | $2.50 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.
FY18 GAAP Net Income Guidance based on Adjusted EBITDA Guidance |
|||
Fiscal Year End 2018 | |||
(in millions) | |||
GAAP Net Income Attributable to AECOM Guidance* | $404 | ||
Adjusted Net Income Attributable to AECOM Excludes: | |||
Amortization of intangible assets, net of NCI | $90 | ||
Financing charges in interest expense | $17 | ||
Tax effect of the above items** | ($30) | ||
Revaluation of deferred taxes and one-time tax repatriation charges associated with U.S. tax reform | ($42) | ||
Adjusted Net Income Attributable to AECOM | $439 | ||
Adjusted EBITDA Excludes: | |||
Interest Expense | $210 | ||
Interest Income | ($4) | ||
Depreciation | $150 | ||
Taxes | $113 | ||
Adjusted EBITDA Guidance | $910 |
*Calculated based on the mid-point of AECOM’s fiscal year 2018 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.
FY18 GAAP Tax Rate Guidance based on Adjusted Tax Rate Guidance |
|||
Fiscal Year End 2018 | |||
GAAP Tax Rate Guidance | 8% | ||
Tax rate impact from adjustments to GAAP earnings | 10% | ||
Tax rate impact from inclusion of NCI deduction | 2% | ||
Effective Tax Rate for Adjusted Earnings Guidance | 20% |
FY18 GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance |
|||
Fiscal Year End 2018 | |||
(in millions) | |||
GAAP Interest Expense Guidance | $227 | ||
Financing charge in interest expense | $17 | ||
Adjusted Interest Expense Guidance | $210 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180206005511/en/
Source:
Investors:
Will Gabrielski, 213-593-8208
Vice
President, Investor Relations
William.Gabrielski@aecom.com
or
Media:
Brendan
Ranson-Walsh,213-996-2367
Vice President, Global External
Communications
Brendan.Ranson-Walsh@aecom.com