News Release
|
Second Quarter Fiscal 2020 |
|
First Half Fiscal 2020 |
||||||
(from Continuing Operations; $ in millions, except EPS) |
As Reported |
Adjusted1 (Non-GAAP) |
As Reported YoY % Change |
Adjusted YoY % Change |
|
As Reported |
Adjusted1 (Non-GAAP) |
As Reported YoY % Change |
Adjusted YoY % Change |
Revenue |
|
-- |
(5%) |
-- |
|
|
-- |
(4%) |
-- |
Net Service Revenue (NSR)2 |
-- |
|
-- |
(1%)3 |
|
-- |
|
-- |
0%3 |
Operating Income |
|
|
2% |
23% |
|
|
|
42% |
27% |
Net Income |
|
|
(6%) |
31% |
|
|
|
(5%) |
31% |
Segment Operating Margin4 (NSR) |
-- |
11.7% |
-- |
+200 bps |
|
-- |
11.7% |
-- |
+210 bps |
EBITDA |
-- |
|
-- |
16% |
|
-- |
|
-- |
21% |
EPS (Fully Diluted) |
|
|
(6%) |
31% |
|
|
|
(6%) |
29% |
Wins |
|
|
52% |
|
|
|
|
|
|
Backlog |
|
-- |
14%5 |
-- |
|
|
|
|
|
Second Quarter and First Half 2020 Accomplishments
- Revenue in the second quarter was
$3.2 billion , and net service revenue2 decreased by 1% on an organic basis3, reflecting stable performance in theAmericas segment and a decline in the International segment. - Net income in the second quarter was
$49 million and diluted earnings per share was$0.30 ; on an adjusted1 basis, diluted earnings per share was$0.55 . - Second quarter adjusted EBITDA1 increased by 16% over the prior year to
$182 million and first half adjusted EBITDA increased by 21%, extending the Company’s track record to six consecutive quarters of delivering double-digit adjusted EBITDA growth. - The segment adjusted operating margin1, 4 on NSR2 increased by 200 basis points over the prior year to 11.7% in the second quarter, which included industry-leading margins in the
Americas segment and substantially increased margins in the International segment. - Second quarter wins of
$8.6 billion set a new record for the Professional Services business and resulted in a 2.5 book-to-burn ratio6, including a greater than 1 book-to-burn ratio in all regions; backlog increased by 14%5 to$42 billion . - The Company exited the second quarter with a substantially transformed balance sheet and liquidity position, including net leverage7 of 1.2x and a record cash position, reflecting the
$2.4 billion sale of the Management Services business, which closed onJanuary 31 st. - The Company is revising its full year adjusted EBITDA1 guidance to
$700 -$740 million , or 10% growth over the prior year at the mid-point; this guidance includes an expected$15 million full year negative impact from changes in foreign exchange rates and incorporates expected impacts from COVID-19.
COVID-19 Associated Impacts
- Across the globe, most of AECOM’s projects have been deemed essential and continue to progress due to critical nature of the work delivered by the Professional Services business; the Company has not experienced any material project cancellations to date.
- In response to changing market conditions, the Company quickly implemented mitigation plans to ensure operational continuity and to facilitate a seamless transition to remote work; at peak, 90% of global employees were working remotely with utilization rates mostly consistent with prior expectations.
- The
Asia-Pacific region was the most significantly impacted region during the fiscal second quarter, with Mainland China losing 10 workdays in February; however, the region delivered on its profit plan and exceeded its cash plan for the quarter and conditions are beginning to normalize across much of the region. - In the
Americas and EMEA regions, the Company is leveraging best practices learned at scale in theAsia-Pacific region and is experiencing a similar level of business continuity and resilience, and utilization rates remain mostly consistent with prior expectations.
AECOM’s Professional Services Business Possesses Inherent Advantages
- Fortified balance sheet with a record cash balance, substantially reduced leverage and no material debt maturities for several years.
- Record
$42 billion backlog that enhances revenue visibility. - Highly flexible cost structure with more than 80% of costs being variable, enabling the Company to quickly adapt to dynamic market conditions.
- Robust IT and HR infrastructure and simplified business structure that further enhance the Company’s agility in responding to changing employee working and client demand trends.
- Demonstrated leadership position in providing key resilience and recovery services, including more than
$200 million of wins in April related to COVID-19 response efforts and nearly$40 billion of IDIQ capacity under existing contracts expected to support ongoing COVID-19 response efforts and longer-term infrastructure investment. - Sizable exposure to public sector clients, where record near-term stimulus and stabilization funding and longer-term infrastructure investments are expected to benefit the Company’s core markets.
Updated Fiscal 2020 Financial Guidance
- Adjusted EBITDA1 is expected to be between
$700 million and$740 million , which would mark 10% year-over-year growth at the mid-point of the range and a second consecutive year of double-digit adjusted EBITDA growth.
– This guidance assumes that economic activity bottoms in the fiscal third quarter and that there are no material project delays or deferrals from the pandemic in the fiscal fourth quarter.
– This guidance also includes an expected negative$15 million full year impact due to changes in foreign exchange rates.
- The Company reiterated its full year free cash flow8 guidance of between
$100 million and$300 million .
– This guidance includes the expected recovery of an approximately$130 million timing-related negative impact to fiscal second quarter cash flow related to MS cash flow in January that was below estimates at the closing of the MS sale.
– The Company expects to recover this amount in the fiscal third quarter through an expected favorable net working capital purchase price adjustment, the collection of which will be reported in the investing section of the cash flow statement, in accordance with GAAP.
“I am proud of AECOM’s strong second quarter and first half financial performance, which was highlighted by our sixth-consecutive quarter of substantial margin improvement in our Professional Services business, continued double-digit adjusted EBITDA growth, a record
“Our results over the past six quarters and, in particular the first half of this year, reinforce the value of our transformation to a higher-margin and lower-risk Professional Services business model,” said
Wins and Backlog
Second quarter wins of
Business Segments
In addition, the MS business, which was sold on
Revenue in the second quarter was
Net service revenue2 was
Operating income was
International
Revenue in the second quarter was
Net service revenue2 was
Operating income was
Discontinued Operations
Second quarter results of discontinued operations included an approximately
Tax Rate
The effective tax rate was 28.7% in the second quarter. On an adjusted basis, the effective tax rate was 26.7%. The adjusted tax rate was derived by re-computing the annual effective tax rate on earnings from adjusted net income.9 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 second quarter was
- A
$180 million negative impact from the previously contemplated termination of the MS receivable sales program concurrent with the sale of the MS business. - Approximately
$40 million of cash use for planned restructuring activities associated with the Company’s transformation into a higher-margin and lower-risk Professional Services business. - An approximately
$130 million impact related to the timing of expected cash flow in the MS business prior to the completion of the sale of the business onJanuary 31 st; the Company expects to recover this impact during the third quarter through a net working capital purchase price adjustment.
Balance Sheet
As of
Restructuring Update
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 complete reconciliation of Non-GAAP measures. |
2 Revenue, net of subcontractor and other direct costs. |
3 Organic growth is year-over-year at constant currency and reflects revenue associated with continuing operations. Results expressed in constant currency are presented excluding the impact from changes in currency exchange rates. |
4 Reflects segment operating performance, excluding |
5 On a constant-currency basis. |
6 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. |
7 Net debt-to-EBITDA, or net leverage, is comprised of EBITDA as defined in the Company’s credit agreement dated |
8 Free cash flow is defined as cash flow from operations less capital expenditures net of proceeds from disposals. |
9 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. |
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, any statements regarding future economic conditions or performance, 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.
When we provide our long term projections for adjusted EBITDA 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.
Consolidated Statements of Income (unaudited - in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
% |
|
|
|
|
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
3,412,605 |
|
$ |
3,245,737 |
|
(4.9)% |
|
$ |
6,768,943 |
|
$ |
6,481,347 |
|
(4.2)% |
Cost of revenue |
|
3,267,768 |
|
3,076,924 |
|
(5.8)% |
|
6,500,710 |
|
6,146,734 |
|
(5.4)% |
||||
Gross profit |
|
144,837 |
|
168,813 |
|
16.6 % |
|
268,233 |
|
334,613 |
|
24.7 % |
||||
Equity in earnings of joint ventures |
|
16,600 |
|
13,505 |
|
(18.6)% |
|
23,232 |
|
23,433 |
|
0.9 % |
||||
General and administrative expenses |
|
(37,426 |
) |
(41,037 |
) |
9.6 % |
|
(73,333 |
) |
(84,651 |
) |
15.4 % |
||||
Restructuring costs |
|
(15,875 |
) |
(31,213 |
) |
96.6 % |
|
(79,170 |
) |
(76,138 |
) |
(3.8)% |
||||
Income from operations |
|
108,136 |
|
110,068 |
|
1.8 % |
|
138,962 |
|
197,257 |
|
42.0 % |
||||
Other income |
|
3,761 |
|
2,430 |
|
(35.4)% |
|
6,746 |
|
6,438 |
|
(4.6)% |
||||
Interest expense |
|
(41,407 |
) |
(37,111 |
) |
(10.4)% |
|
(80,832 |
) |
(77,488 |
) |
(4.1)% |
||||
Income before income tax expense (benefit) |
|
70,490 |
|
75,387 |
|
6.9 % |
|
64,876 |
|
126,207 |
|
94.5 % |
||||
Income tax expense (benefit) |
|
12,218 |
|
21,604 |
|
76.8 % |
|
(30,317 |
) |
37,510 |
|
(223.7)% |
||||
Income from continuing operations |
|
58,272 |
|
53,783 |
|
(7.7)% |
|
95,193 |
|
88,697 |
|
(6.8)% |
||||
Discontinued operations, net of tax |
|
35,247 |
|
(130,749 |
) |
(471.0)% |
|
63,412 |
|
(112,569 |
) |
(277.5)% |
||||
Net income (loss) |
|
93,519 |
|
(76,966 |
) |
(182.3)% |
|
158,605 |
|
(23,872 |
) |
(115.1)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to noncontrolling interests |
|
(6,898 |
) |
(5,243 |
) |
(24.0)% |
|
(11,838 |
) |
(9,290 |
) |
(21.5)% |
||||
Net income attributable to noncontrolling interests |
|
(8,776 |
) |
(3,917 |
) |
(55.4)% |
|
(17,403 |
) |
(12,360 |
) |
(29.0)% |
||||
Net income attributable to noncontrolling interests |
|
(15,674 |
) |
(9,160 |
) |
(41.6)% |
|
(29,241 |
) |
(21,650 |
) |
(26.0)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to |
|
51,374 |
|
48,540 |
|
(5.5)% |
|
83,355 |
|
79,407 |
|
(4.7)% |
||||
Net income (loss) attributable to |
|
26,471 |
|
(134,666 |
) |
(608.7)% |
|
46,009 |
|
(124,929 |
) |
(371.5)% |
||||
Net income (loss) attributable to |
|
$ |
77,845 |
|
$ |
(86,126 |
) |
(210.6)% |
|
$ |
129,364 |
|
$ |
(45,522 |
) |
(135.2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.33 |
|
$ |
0.31 |
|
(6.1)% |
|
$ |
0.53 |
|
$ |
0.50 |
|
(5.7)% |
Discontinued operations |
|
|
0.17 |
|
|
(0.85 |
) |
(600.0)% |
|
|
0.30 |
|
|
(0.79 |
) |
(363.3)% |
Basic earnings (loss) per share |
|
$ |
0.50 |
|
$ |
(0.54 |
) |
(208.0)% |
|
$ |
0.83 |
|
$ |
(0.29 |
) |
(134.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.32 |
|
$ |
0.30 |
|
(6.3)% |
|
$ |
0.52 |
|
$ |
0.49 |
|
(5.8)% |
Discontinued operations |
|
|
0.17 |
|
|
(0.84 |
) |
(594.1)% |
|
|
0.29 |
|
|
(0.77 |
) |
(365.5)% |
Diluted earnings (loss) per share |
|
$ |
0.49 |
|
$ |
(0.54 |
) |
(210.2)% |
|
$ |
0.81 |
|
$ |
(0.28 |
) |
(134.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
156,621 |
|
158,550 |
|
1.2 % |
|
156,519 |
|
157,941 |
|
0.9 % |
||||
Diluted |
|
158,416 |
|
160,718 |
|
1.5 % |
|
159,010 |
|
160,687 |
|
1.1 % |
Balance Sheet Information (unaudited - in thousands) |
|||||
|
|
|
|
||
Balance Sheet Information: |
|
|
|
||
Total cash and cash equivalents |
$ |
885,639 |
|
$ |
1,135,061 |
Accounts receivable and contract assets – net |
|
4,451,022 |
|
|
4,655,315 |
Working capital |
|
1,072,891 |
|
|
1,390,716 |
Total debt, excluding unamortized debt issuance costs |
|
3,352,464 |
|
|
2,153,618 |
Total assets |
|
14,550,908 |
|
|
13,115,346 |
Total |
|
3,690,576 |
|
|
3,531,502 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
International |
|
|
|
Corporate |
|
Total |
||||||
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
|
$ |
2,475,694 |
|
$ |
769,535 |
|
$ |
508 |
|
$ |
- |
|
$ |
3,245,737 |
|
Cost of revenue |
|
|
2,340,061 |
|
|
736,863 |
|
|
- |
|
|
- |
|
|
3,076,924 |
|
Gross profit |
|
|
135,633 |
|
|
32,672 |
|
|
508 |
|
|
- |
|
|
168,813 |
|
Equity in earnings of joint ventures |
|
|
5,341 |
|
|
3,148 |
|
|
5,016 |
|
|
- |
|
|
13,505 |
|
General and administrative expenses |
|
|
- |
|
|
- |
|
|
(1,759 |
) |
|
(39,278 |
) |
|
(41,037 |
) |
Restructuring costs |
|
|
- |
|
|
- |
|
|
- |
|
|
(31,213 |
) |
|
(31,213 |
) |
Income (loss) from operations |
|
$ |
140,974 |
|
$ |
35,820 |
|
$ |
3,765 |
|
$ |
(70,491 |
) |
$ |
110,068 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit as a % of revenue |
|
|
5.5% |
|
|
4.2% |
|
|
-- |
|
|
-- |
|
|
5.2% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
|
$ |
2,576,474 |
|
$ |
834,644 |
|
$ |
1,487 |
|
$ |
- |
|
$ |
3,412,605 |
|
Cost of revenue |
|
|
2,449,775 |
|
|
817,993 |
|
|
- |
|
|
- |
|
|
3,267,768 |
|
Gross profit |
|
|
126,699 |
|
|
16,651 |
|
|
1,487 |
|
|
- |
|
|
144,837 |
|
Equity in earnings of joint ventures |
|
|
1,840 |
|
|
5,039 |
|
|
9,721 |
|
|
- |
|
|
16,600 |
|
General and administrative expenses |
|
|
- |
|
|
- |
|
|
(1,681 |
) |
|
(35,745 |
) |
|
(37,426 |
) |
Restructuring costs |
|
|
- |
|
|
- |
|
|
- |
|
|
(15,875 |
) |
|
(15,875 |
) |
Income (loss) from operations |
|
$ |
128,539 |
|
$ |
21,690 |
|
$ |
9,527 |
|
$ |
(51,620 |
) |
$ |
108,136 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit as a % of revenue |
|
|
4.9% |
|
|
2.0% |
|
|
-- |
|
|
-- |
|
|
4.2% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
|
$ |
4,927,676 |
|
$ |
1,552,630 |
|
$ |
1,041 |
|
$ |
- |
|
$ |
6,481,347 |
|
Cost of revenue |
|
|
4,652,611 |
|
|
1,494,123 |
|
|
- |
|
|
- |
|
|
6,146,734 |
|
Gross profit |
|
|
275,065 |
|
|
58,507 |
|
|
1,041 |
|
|
- |
|
|
334,613 |
|
Equity in earnings of joint ventures |
|
|
11,770 |
|
|
5,984 |
|
|
5,679 |
|
|
- |
|
|
23,433 |
|
General and administrative expenses |
|
|
- |
|
|
- |
|
|
(4,178 |
) |
|
(80,473 |
) |
|
(84,651 |
) |
Restructuring costs |
|
|
- |
|
|
- |
|
|
- |
|
|
(76,138 |
) |
|
(76,138 |
) |
Income (loss) from operations |
|
$ |
286,835 |
|
$ |
64,491 |
|
$ |
2,542 |
|
$ |
(156,611 |
) |
$ |
197,257 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit as a % of revenue |
|
|
5.6% |
|
|
3.8% |
|
|
- |
|
|
- |
|
|
5.2% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contracted backlog |
|
$ |
13,512,174 |
|
$ |
3,518,306 |
|
$ |
- |
|
$ |
- |
|
$ |
17,030,480 |
|
Awarded backlog |
|
|
22,907,354 |
|
|
897,933 |
|
|
- |
|
|
- |
|
|
23,805,287 |
|
Unconsolidated JV backlog |
|
|
775,275 |
|
|
- |
|
|
- |
|
|
- |
|
|
775,275 |
|
Total backlog |
|
$ |
37,194,803 |
|
$ |
4,416,239 |
|
$ |
- |
|
$ |
- |
|
$ |
41,611,042 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
|
$ |
5,136,875 |
|
$ |
1,626,648 |
|
$ |
5,420 |
|
$ |
- |
|
$ |
6,768,943 |
|
Cost of revenue |
|
|
4,902,955 |
|
|
1,597,755 |
|
|
- |
|
|
- |
|
|
6,500,710 |
|
Gross profit |
|
|
233,920 |
|
|
28,893 |
|
|
5,420 |
|
|
- |
|
|
268,233 |
|
Equity in earnings of joint ventures |
|
|
8,104 |
|
|
7,892 |
|
|
7,236 |
|
|
- |
|
|
23,232 |
|
General and administrative expenses |
|
|
- |
|
|
- |
|
|
(3,408 |
) |
|
(69,925 |
) |
|
(73,333 |
) |
Restructuring costs |
|
|
- |
|
|
- |
|
|
- |
|
|
(79,170 |
) |
|
(79,170 |
) |
Income (loss) from operations |
|
$ |
242,024 |
|
$ |
36,785 |
|
$ |
9,248 |
|
$ |
(149,095 |
) |
$ |
138,962 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit as a % of revenue |
|
|
4.6% |
|
|
1.8% |
|
|
-- |
|
|
-- |
|
|
4.0% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contracted backlog |
|
$ |
13,282,229 |
|
$ |
3,852,880 |
|
$ |
- |
|
$ |
- |
|
$ |
17,135,109 |
|
Awarded backlog |
|
|
17,496,446 |
|
|
869,693 |
|
|
- |
|
|
- |
|
|
18,366,139 |
|
Unconsolidated JV backlog |
|
|
1,249,891 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,249,891 |
|
Total backlog |
|
$ |
32,028,566 |
|
$ |
4,722,573 |
|
$ |
- |
|
$ |
- |
|
$ |
36,751,139 |
|
||||||||||||
Regulation G Information |
||||||||||||
($ in millions) |
||||||||||||
Reconciliation of Revenue to Revenue, Net of Subcontractor and Other Direct Costs (NSR) |
||||||||||||
|
Three Months Ended |
|
|
Six Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
2,576.5 |
|
$ |
2,475.7 |
|
|
$ |
5,136.9 |
|
$ |
4,927.7 |
Less: Subcontractor and other direct costs |
|
1,636.0 |
|
|
1,542.5 |
|
|
|
3,321.4 |
|
|
3,089.0 |
Revenue, net of subcontractor and other direct costs |
$ |
940.5 |
|
$ |
933.2 |
|
|
$ |
1,815.5 |
|
$ |
1,838.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
834.6 |
|
$ |
769.5 |
|
|
$ |
1,626.6 |
|
$ |
1,552.6 |
Less: Subcontractor and other direct costs |
|
180.3 |
|
|
143.2 |
|
|
|
335.3 |
|
|
292.6 |
Revenue, net of subcontractor and other direct costs |
$ |
654.3 |
|
$ |
626.3 |
|
|
$ |
1,291.3 |
|
$ |
1,260.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Performance (excludes ACAP) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,411.1 |
|
$ |
3,245.2 |
|
|
$ |
6,763.5 |
|
$ |
6,480.3 |
Less: Subcontractor and other direct costs |
|
1,816.3 |
|
|
1,685.7 |
|
|
|
3,656.7 |
|
|
3,381.6 |
Revenue, net of subcontractor and other direct costs |
$ |
1,594.8 |
|
$ |
1,559.5 |
|
|
$ |
3,106.8 |
|
$ |
3,098.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,412.6 |
|
$ |
3,245.7 |
|
|
$ |
6,768.9 |
|
$ |
6,481.3 |
Less: Subcontractor and other direct costs |
|
1,816.3 |
|
|
1,685.7 |
|
|
|
3,656.7 |
|
|
3,381.6 |
Revenue, net of subcontractor and other direct costs |
$ |
1,596.3 |
|
$ |
1,560.0 |
|
|
$ |
3,112.2 |
|
$ |
3,099.7 |
Reconciliation of Total Debt to Net Debt |
||||||||
|
Balances at: |
|||||||
|
|
|
|
|
|
|||
Short-term debt |
$ |
48.4 |
|
$ |
55.0 |
|
$ |
27.2 |
Current portion of long-term debt |
|
80.8 |
|
|
56.6 |
|
|
25.2 |
Long-term debt, gross |
|
3,708.1 |
|
|
3,392.1 |
|
|
2,101.2 |
Total debt excluding unamortized debt issuance costs |
|
3,837.3 |
|
|
3,503.7 |
|
|
2,153.6 |
Less: Total cash and cash equivalents |
|
666.1 |
|
|
725.4 |
|
|
1,135.1 |
Net debt |
$ |
3,171.2 |
|
$ |
2,778.3 |
|
$ |
1,018.5 |
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
107.4 |
|
$ |
(206.9 |
) |
$ |
(299.1 |
) |
$ |
(93.0 |
) |
$ |
(506.0 |
) |
Capital expenditures, net |
|
(22.5 |
) |
|
(31.1 |
) |
|
(13.4 |
) |
|
(44.4 |
) |
|
(44.5 |
) |
Free cash flow |
$ |
84.9 |
|
$ |
(238.0 |
) |
$ |
(312.5 |
) |
$ |
(137.4 |
) |
$ |
(550.5 |
) |
|
|||||||||||||||
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income from Operations to Adjusted Income from Operations |
|||||||||||||||
Income from operations |
$ |
108.2 |
|
$ |
87.2 |
|
$ |
110.1 |
|
$ |
139.0 |
|
$ |
197.3 |
|
Non-core operating losses & transaction related expenses |
|
(1.2 |
) |
|
5.6 |
|
|
- |
|
|
8.2 |
|
|
5.6 |
|
Accelerated depreciation of project management tool |
|
- |
|
|
- |
|
|
11.3 |
|
|
- |
|
|
11.3 |
|
Restructuring costs |
|
15.9 |
|
|
44.9 |
|
|
31.2 |
|
|
79.2 |
|
|
76.1 |
|
Amortization of intangible assets |
|
6.3 |
|
|
6.1 |
|
|
6.2 |
|
|
12.6 |
|
|
12.3 |
|
Adjusted income from operations |
$ |
129.2 |
|
$ |
143.8 |
|
$ |
158.8 |
|
$ |
239.0 |
|
$ |
302.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Before Income Taxes to Adjusted Income Before Income Taxes |
|||||||||||||||
Income before income tax expense (benefit) |
$ |
70.5 |
|
$ |
50.8 |
|
$ |
75.4 |
|
$ |
64.9 |
|
$ |
126.2 |
|
Non-core operating losses & transaction related expenses |
|
(1.2 |
) |
|
5.6 |
|
|
- |
|
|
8.2 |
|
|
5.6 |
|
Accelerated depreciation of project management tool |
|
- |
|
|
- |
|
|
11.3 |
|
|
- |
|
|
11.3 |
|
Restructuring costs |
|
15.9 |
|
|
44.9 |
|
|
31.2 |
|
|
79.2 |
|
|
76.1 |
|
Amortization of intangible assets |
|
6.3 |
|
|
6.1 |
|
|
6.2 |
|
|
12.6 |
|
|
12.3 |
|
Financing charges in interest expense |
|
2.4 |
|
|
2.0 |
|
|
0.9 |
|
|
4.8 |
|
|
2.9 |
|
Adjusted income before income tax expense |
$ |
93.9 |
|
$ |
109.4 |
|
$ |
125.0 |
|
$ |
169.7 |
|
$ |
234.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Taxes to Adjusted Income Taxes |
|||||||||||||||
Income tax expense (benefit) |
$ |
12.2 |
|
$ |
15.9 |
|
$ |
21.6 |
|
$ |
(30.3 |
) |
$ |
37.5 |
|
Tax effect of the above adjustments* |
|
6.5 |
|
|
15.2 |
|
|
11.4 |
|
|
28.9 |
|
|
26.6 |
|
Valuation allowances and other tax only items |
|
1.1 |
|
|
(0.4 |
) |
|
(1.1 |
) |
|
34.7 |
|
|
(1.5 |
) |
Adjusted income tax expense |
$ |
19.8 |
|
$ |
30.7 |
|
$ |
31.9 |
|
$ |
33.3 |
|
$ |
62.6 |
|
____________________
* 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. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Noncontrolling Interests to Adjusted Noncontrolling Interests |
|||||||||||||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax |
$ |
(6.9 |
) |
$ |
(4.0 |
) |
$ |
(5.3 |
) |
$ |
(11.8 |
) |
$ |
(9.3 |
) |
Amortization of intangible assets included in NCI, net of tax |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
(0.2 |
) |
Adjusted noncontrolling interests in income of consolidated subsidiaries, net of tax |
$ |
(7.1 |
) |
$ |
(4.1 |
) |
$ |
(5.4 |
) |
$ |
(12.1 |
) |
$ |
(9.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Attributable to |
|||||||||||||||
Net income attributable to |
$ |
51.4 |
|
$ |
30.9 |
|
$ |
48.5 |
|
$ |
83.4 |
|
$ |
79.4 |
|
Non-core operating losses & transaction related expenses |
|
(1.2 |
) |
|
5.6 |
|
|
- |
|
|
8.2 |
|
|
5.6 |
|
Accelerated depreciation of project management tool |
|
- |
|
|
- |
|
|
11.3 |
|
|
- |
|
|
11.3 |
|
Restructuring costs |
|
15.9 |
|
|
44.9 |
|
|
31.2 |
|
|
79.2 |
|
|
76.1 |
|
Amortization of intangible assets |
|
6.3 |
|
|
6.1 |
|
|
6.2 |
|
|
12.6 |
|
|
12.3 |
|
Financing charges in interest expense |
|
2.4 |
|
|
2.0 |
|
|
0.9 |
|
|
4.8 |
|
|
2.9 |
|
Tax effect of the above adjustments* |
|
(6.5 |
) |
|
(15.2 |
) |
|
(11.5 |
) |
|
(28.9 |
) |
|
(26.7 |
) |
Valuation allowances and other tax only items |
|
(1.1 |
) |
|
0.4 |
|
|
1.1 |
|
|
(34.7 |
) |
|
1.5 |
|
Amortization of intangible assets included in NCI, net of tax |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
(0.2 |
) |
Adjusted net income attributable to |
$ |
67.0 |
|
$ |
74.6 |
|
$ |
87.6 |
|
$ |
124.3 |
|
$ |
162.2 |
|
____________________
* 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 |
|
Six Months Ended |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share |
|||||||||||||||||||||||||||
Net income attributable to |
$ |
0.32 |
|
$ |
0.19 |
|
$ |
0.30 |
|
$ |
0.52 |
|
$ |
0.49 |
|
||||||||||||
Per diluted share adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-core operating losses & transaction related expenses |
|
(0.01 |
) |
|
0.03 |
|
|
- |
|
|
0.05 |
|
|
0.03 |
|
||||||||||||
Accelerated depreciation of project management tool |
|
- |
|
|
- |
|
|
0.07 |
|
|
- |
|
|
0.07 |
|
||||||||||||
Restructuring costs |
|
0.10 |
|
|
0.28 |
|
|
0.19 |
|
|
0.50 |
|
|
0.47 |
|
||||||||||||
Amortization of intangible assets |
|
0.04 |
|
|
0.04 |
|
|
0.04 |
|
|
0.08 |
|
|
0.08 |
|
||||||||||||
Financing charges in interest expense |
|
0.02 |
|
|
0.01 |
|
|
0.01 |
|
|
0.03 |
|
|
0.02 |
|
||||||||||||
Tax effect of the above adjustments* |
|
(0.04 |
) |
|
(0.09 |
) |
|
(0.07 |
) |
|
(0.18 |
) |
|
(0.16 |
) |
||||||||||||
Valuation allowances and other tax only items |
|
(0.01 |
) |
|
- |
|
|
0.01 |
|
|
(0.22 |
) |
|
0.01 |
|
||||||||||||
Adjusted net income attributable to |
$ |
0.42 |
|
$ |
0.46 |
|
$ |
0.55 |
|
$ |
0.78 |
|
$ |
1.01 |
|
||||||||||||
Weighted average shares outstanding – diluted |
|
158.4 |
|
|
160.7 |
|
|
160.7 |
|
|
159.6 |
|
|
160.7 |
|
||||||||||||
____________________
* 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 |
$ |
51.4 |
|
$ |
30.9 |
|
$ |
48.5 |
|
$ |
83.4 |
|
$ |
79.4 |
|
||||||||||||
Income tax expense (benefit) |
|
12.2 |
|
|
15.9 |
|
|
21.6 |
|
|
(30.3 |
) |
|
37.5 |
|
||||||||||||
Income attributable to |
|
63.6 |
|
|
46.8 |
|
|
70.1 |
|
|
53.1 |
|
|
116.9 |
|
||||||||||||
Depreciation and amortization expense |
|
43.3 |
|
|
41.1 |
|
|
48.7 |
|
|
83.3 |
|
|
89.8 |
|
||||||||||||
Interest income1 |
|
(2.9 |
) |
|
(3.4 |
) |
|
(3.6 |
) |
|
(5.1 |
) |
|
(7.0 |
) |
||||||||||||
Interest expense2 |
|
41.3 |
|
|
40.3 |
|
|
37.1 |
|
|
80.7 |
|
|
77.4 |
|
||||||||||||
Amortized bank fees included in interest expense |
|
(2.4 |
) |
|
(2.0 |
) |
|
(1.3 |
) |
|
(4.8 |
) |
|
(3.3 |
) |
||||||||||||
EBITDA |
$ |
142.9 |
|
$ |
122.8 |
|
$ |
151.0 |
|
$ |
207.2 |
|
$ |
273.8 |
|
||||||||||||
Non-core operating losses & transaction related expenses |
|
(1.2 |
) |
|
5.6 |
|
|
- |
|
|
8.2 |
|
|
5.6 |
|
||||||||||||
Restructuring costs |
|
15.9 |
|
|
45.0 |
|
|
31.2 |
|
|
79.2 |
|
|
76.2 |
|
||||||||||||
Adjusted EBITDA |
$ |
157.6 |
|
$ |
173.4 |
|
$ |
182.2 |
|
$ |
294.6 |
|
$ |
355.6 |
|
||||||||||||
Other income |
|
(3.8 |
) |
|
(4.0 |
) |
|
(2.4 |
) |
|
(6.8 |
) |
|
(6.4 |
) |
||||||||||||
Depreciation3 |
|
(34.7 |
) |
|
(33.1 |
) |
|
(30.0 |
) |
|
(66.1 |
) |
|
(63.1 |
) |
||||||||||||
Interest income1 |
|
2.9 |
|
|
3.4 |
|
|
3.6 |
|
|
5.1 |
|
|
7.0 |
|
||||||||||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax |
|
7.0 |
|
|
4.1 |
|
|
5.3 |
|
|
12.0 |
|
|
9.4 |
|
||||||||||||
Amortization of intangible assets included in NCI, |
|
0.2 |
|
|
- |
|
|
0.1 |
|
|
0.2 |
|
|
0.1 |
|
||||||||||||
Adjusted income from operations |
$ |
129.2 |
|
$ |
143.8 |
|
$ |
158.8 |
|
$ |
239.0 |
|
$ |
302.6 |
|
||||||||||||
____________________
1 Included in other income; 2 Excludes related amortization; 3 Excludes depreciation from non-core operating losses, and accelerated depreciation of project management tool; |
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Three Months Ended |
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Six Months Ended |
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Reconciliation of Segment Income from Operations to Adjusted Income from Operations |
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Americas Segment: |
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Income from operations |
$ |
128.5 |
|
$ |
145.9 |
|
$ |
141.0 |
|
$ |
242.0 |
|
$ |
286.9 |
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Non-core operating losses & transaction related expenses |
|
(1.2 |
) |
|
- |
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|
- |
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|
8.2 |
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|
- |
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Amortization of intangible assets |
|
4.8 |
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|
4.7 |
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|
4.8 |
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|
9.6 |
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|
9.5 |
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Adjusted income from operations |
$ |
132.1 |
|
$ |
150.6 |
|
$ |
145.8 |
|
$ |
259.8 |
|
$ |
296.4 |
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International Segment: |
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Income from operations |
$ |
21.7 |
|
$ |
28.7 |
|
$ |
35.8 |
|
$ |
36.8 |
|
$ |
64.5 |
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Non-core operating losses & transaction related expenses |
|
- |
|
|
(0.1 |
) |
|
- |
|
|
- |
|
|
(0.1 |
) |
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Amortization of intangible assets |
|
1.6 |
|
|
1.4 |
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|
1.4 |
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|
3.1 |
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|
2.8 |
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Adjusted income from operations |
$ |
23.3 |
|
$ |
30.0 |
|
$ |
37.2 |
|
$ |
39.9 |
|
$ |
67.2 |
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Segment Performance (excludes ACAP): |
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Income from operations |
$ |
150.2 |
|
$ |
174.6 |
|
$ |
176.8 |
|
$ |
278.8 |
|
$ |
351.4 |
|
||||
Non-core operating losses & transaction related expenses |
|
(1.2 |
) |
|
(0.1 |
) |
|
- |
|
|
8.2 |
|
|
(0.1 |
) |
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Amortization of intangible assets |
|
6.4 |
|
|
6.1 |
|
|
6.2 |
|
|
12.7 |
|
|
12.3 |
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Adjusted income from operations |
$ |
155.4 |
|
$ |
180.6 |
|
$ |
183.0 |
|
$ |
299.7 |
|
$ |
363.6 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20200505005355/en/
Investor Contact:
Senior Vice President, Investor Relations
213.593.8208
William.Gabrielski@aecom.com
Media Contact:
Vice President,
213.996.2367
Brendan.Ranson-Walsh@aecom.com
Source: