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Press release from Business Wire

AECOM reports first-quarter fiscal year 2012 financial results

<p class='bwalignc'> <i><b>Reports backlog of $15.8 billion</b></i> </p> <ul> <li class='bwlistitemmargb'> First-quarter diluted earnings per share of 42 cents. </li> <li class='bwlistitemmargb'> Net income for the first quarter of $48 million. </li> <li class='bwlistitemmargb'> Revenue, net of other direct costs, for the first quarter of $1.2 billion. </li> <li class='bwlistitemmargb'> Revenue for the first quarter of $2.0 billion. </li> <li class='bwlistitemmargb'> Total backlog at Dec. 31, 2011, of $15.8 billion. </li> <li class='bwlistitemmargb'> First-quarter cash flow from operations improved by $173 million year over year. </li> <li class='bwlistitemmargb'> Diluted earnings per share range outlook of $2.45 to $2.65 for full fiscal year 2012. </li> </ul> <p class='bwalignc'> </p>

Thursday, February 02, 2012

AECOM reports first-quarter fiscal year 2012 financial results07:00 EST Thursday, February 02, 2012 LOS ANGELES (Business Wire) -- AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for public and private sector clients in more than 130 countries around the world, announced today its financial results for the first quarter of fiscal year 2012, which ended Dec. 31, 2011. AECOM reported net income of $48 million for the first quarter and diluted earnings per share (EPS) of 42 cents for the first quarter. This represents a decrease of 16% from net income of $57 million and a decrease of 13% from diluted earnings per share of 48 cents for the same period last year. Operating income for the first quarter was $77 million, a decrease of 15% from the same period last year. First-quarter revenue was $2.0 billion, a 5% increase from the first quarter of fiscal year 2011. AECOM's gross revenue includes a significant amount of pass-through costs and, therefore, the company believes that revenue, net of other direct costs, which is a non-GAAP measure and excludes such pass-through costs, also provides a valuable perspective on its business results. First-quarter revenue, net of other direct costs, was $1.2 billion, representing a 1% increase over the same period last year. Organic revenue, net of other direct costs, for the first quarter increased 0.4% year over year. Organic revenue, net of other direct costs, excludes revenue, net of other direct costs, from acquired companies, which is defined as revenue, net of other direct costs, included in the current period up to 12 months subsequent to their acquisition date. “Our results for the first quarter are in line with our expectations and consistent with what we discussed on our fourth-quarter earnings call. We maintain our outlook for the full year,” said John M. Dionisio, AECOM chairman and chief executive officer. “More importantly, we delivered key wins across our diversified platform during the quarter – highlighted by signifcant backlog growth in our emerging markets and across our geographies. We are well positioned to build on this momentum.” Business Segments In addition to providing consolidated financial results, AECOM reports separate financial information for its two segments: Professional Technical Services (PTS) and Management Support Services (MSS). Professional Technical Services The PTS segment delivers planning, consulting, architecture and engineering design, and program and construction management services to institutional, commercial and public sector clients worldwide. For the first quarter of fiscal year 2012, the PTS segment reported revenue of $1.8 billion and revenue, net of other direct costs, of $1.1 billion, compared to revenue of $1.6 billion and revenue, net of other direct costs, of $1.08 billion in the same period last year. This represents a 15% increase in revenue and a 1% increase in revenue, net of other direct costs. PTS segment operating income was $87.3 million compared to $91.6 million last year. Management Support Services The MSS segment provides facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, primarily for agencies of the U.S. government. For the first quarter of fiscal year 2012, the MSS segment reported revenue of $221.8 million and revenue, net of other direct costs, of $129.9 million, compared to revenue of $360.4 million, and revenue, net of other direct costs, of $129.0 million for the same period during fiscal year 2011. This represents a 38% decrease in revenue contrasted by a 1% increase in revenue, net of other direct costs, highlighting a change in the mix of the business. In addition, the MSS segment reported operating income of $12.0 million compared to $21.8 million for the same period during fiscal year 2011. Cash Flow and Balance Sheet Cash flow from operations for the first quarter of fiscal year 2012 improved by $173 million from the prior year to negative $6 million. As of Dec. 31, 2011, AECOM had $507 million of total cash and cash equivalents, $1.2 billion of debt with $1.05 billion in committed bank facilities that have $842 million in unused capacity. Backlog AECOM announced backlog of $15.8 billion at Dec. 31, 2011, a 2% increase year over year. Excluding backlog obtained through acquisitions, total backlog increased 2% year over year. Outlook “Our $2.2 billion in new wins during the first quarter, coupled with the visibility provided by our backlog of $15.8 billion, give us confidence in the balance of fiscal 2012 and beyond,” said Michael S. Burke, AECOM president. “The positive momentum that we delivered in our power, energy and mining markets during the quarter reflects our ability to optimize our operational performance this year and over the long term.” AECOM expects diluted earnings per share results for fiscal year 2012 to be in the range of $2.45 to $2.65. The 2012 earnings guidance range includes the following key assumptions: 2012 tax rate of 29%, inclusive of non-controlling interest deduction; interest expense of $43 million; amortization of intangibles expense of $24 million; depreciation expense of $76 million; and full-year share count of 115 million. AECOM is hosting a conference call at 11 a.m. Eastern Time, during which management will make a brief presentation focusing on the company's results, strategies and operating trends. Those wishing to dial in to the call via telephone can do so by dialing 1-866-831-6272 or 1-617-213-8859 and entering the passcode 43843171. Interested parties also can listen to the conference call via webcast at www.aecom.com. The webcast will be available for replay following the call. The accompanying presentation slides currently are available on the site. About AECOM AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation, and technical excellence in delivering solutions that create, enhance and sustain the world's built, natural, and social environments. A Fortune 500 company, AECOM serves clients in more than 130 countries and had revenue of $8.1 billion during the 12 months ended Dec. 31, 2011. More information on AECOM and its services can be found at www.aecom.com. Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings or other financial items; any statements of the plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in forward-looking statements include: uncertainties related to funding, audits, modifications and termination of long-term government contracts; losses under fixed-price contracts; limited control over operations run through our joint venture entities; misconduct by our employees or consultants or our failure to comply with laws or regulations; failure to successfully execute our merger and acquisition strategy; the need to retain and recruit key technical and management personnel; and unexpected adjustments and cancellations related to our backlog. Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in our reports filed with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statement.   AECOM Technology CorporationConsolidated Statements of Income(unaudited - in thousands, except per share data)         Three Months EndedDecember 31,2011     December 31,2010   Revenue $ 2,029,180 $ 1,936,183 Other direct costs   798,331   722,406 Revenue, net of other direct costs (non-GAAP) 1,230,849 1,213,777 Cost of revenue, net of other direct costs   1,140,503   1,108,442 Gross profit 90,346 105,335   Equity in earnings of joint ventures 8,962 8,097 General and administrative expenses   22,611   23,262 Income from operations 76,697 90,170   Other income 1,919 2,288 Interest expense, net   (10,614 )     (9,872 )   Income before income tax expense 68,002 82,586   Income tax expense   19,578   20,503   Net income 48,424 62,083   Non-controlling interest in income of consolidated subsidiaries, net of tax (493 )   (5,215 )       Net income attributable to AECOM $ 47,931 $ 56,868   Net income allocation: Preferred stock dividend $ — $ 2   Net income available for common stockholders   47,931   56,866 Net income attributable to AECOM $ 47,931 $ 56,868   Net income attributable to AECOM per share: Basic and diluted $ 0.42 $ 0.48   Weighted average shares outstanding: Basic 113,965 118,001 Diluted 114,591 119,115   AECOM Technology Corporation     Balance Sheet and Cash Flow Information(unaudited - in thousands)               December 31,2011September 30,2011 Balance Sheet Information: Cash and cash equivalents $ 507,486 $ 456,940 Accounts receivable, net 2,513,914 2,380,181 Working capital 1,304,958 1,175,620 Working capital, net of cash and cash equivalents 797,472 718,680   Total debt 1,241,535 1,162,469 Total assets 5,994,615 5,789,328 Total stockholders' equity 2,412,306 2,339,711       Three Months EndedDecember 31,2011December 31,2010 Cash Flow Information: Net cash used in operating activities* $ (6,426 ) $ (179,345 )   * Dec. 31, 2010, amount includes deferred compensation plan termination ($90 million) and associated excess taxbenefits ($58 million).   AECOM Technology Corporation     Reportable Segments(in thousands)                       ProfessionalTechnicalServicesManagementSupportServicesCorporateTotalThree Months Ended December 31, 2011 Revenue $ 1,807,404 $ 221,776 $ — $ 2,029,180 Other direct costs 706,536 91,795 — 798,331 Revenue, net of other direct costs (non-GAAP) 1,100,868 129,981 — 1,230,849 Cost of revenue, net of other direct costs 1,016,107 124,396 — 1,140,503 Gross profit 84,761 5,585 — 90,346 Equity in earnings of joint ventures 2,492 6,470 — 8,962 General and administrative expenses — — 22,611 22,611 Income from operations $ 87,253 $ 12,055 $ (22,611 ) $ 76,697   Gross profit as a % of revenue 4.7% 2.5% — 4.5% Gross profit as a % of revenue, net of other  direct costs (non-GAAP) 7.7% 4.3% — 7.3%   Contracted backlog $ 7,664,175 $ 888,615 $ — $ 8,552,790 Awarded backlog 6,078,771 1,194,993   7,273,764 Total backlog $ 13,742,946 $ 2,083,608 $ — $ 15,826,554     Three Months Ended December 31, 2010 Revenue $ 1,575,771 $ 360,412 $ — $ 1,936,183 Other direct costs 490,964 231,442 — 722,406 Revenue, net of other direct costs (non-GAAP) 1,084,807 128,970 — 1,213,777 Cost of revenue, net of other direct costs 995,273 113,169 — 1,108,442 Gross profit 89,534 15,801 — 105,335 Equity in earnings of joint ventures 2,110 5,987 — 8,097 General and administrative expenses — — 23,262 23,262 Income from operations $ 91,644 $ 21,788 $ (23,262 ) $ 90,170   Gross profit as a % of revenue 5.7% 4.4% — 5.4% Gross profit as a % of revenue, net of other  direct costs (non-GAAP) 8.3% 12.3% — 8.7%   Contracted backlog $ 7,398,598 $ 492,050 $ — $ 7,890,648 Awarded backlog 5,649,886 1,968,717 — 7,618,603 Total backlog $ 13,048,484 $ 2,460,767 $ — $ 15,509,251   AECOM Technology Corporation     Regulation G Information($ in millions)   Reconciliation of Revenue to Revenue, Net of Other Direct Costs     Three Months EndedDecember31, 2011       December 31,2010Consolidated Revenue $ 2,029.2 $ 1,936.2 Less: Other direct costs   798.4   722.4 Revenue, net of other direct costs $ 1,230.8 $ 1,213.8   PTS Segment Revenue $ 1,807.4 $ 1,575.8 Less: Other direct costs   706.5   491.0 Revenue, net of other direct costs $ 1,100.9 $ 1,084.8   MSS Segment Revenue $ 221.8 $ 360.4 Less: Other direct costs   91.9   231.4 Revenue, net of other direct costs $ 129.9 $ 129.0   Reconciliation of Amounts Provided by Acquired Companies         Three Months Ended December 31, 2011Total       Provided byAcquiredCompanies       ExcludingEffect ofAcquiredCompaniesConsolidated Revenue, net of other direct costs $ 1,230.8 $ 12.1 $ 1,218.7   Reconciliation of EBITDA to Net Income Attributable to AECOM           Three Months EndedDec 31,2011       Sep 30,2011       Jun 30,2011       Mar 31,2011       Dec 31,2010       Sep 30,2010       Jun 30,2010       Mar 31,2010   EBITDA $ 103.0 $ 157.8 $ 136.2 $ 114.3 $ 117.1 $ 125.8 $ 105.9 $ 100.3 Less: Interest (income) / expense* 10.0 8.9 10.4 10.0 9.9 5.3 1.2 2.4 Less: Depreciation and amortization 25.5 25.1 28.0 27.4 29.8 21.2 17.2 18.2   Income from continuing operationsattributable to AECOM before income taxes 67.5 123.8 97.8 76.9 77.4 99.3 87.5 79.7 Less: Income tax expense 19.6 36.4 24.0 19.2 20.5 31.5 22.7 21.0   Income from continuing operationsattributable to AECOM 47.9 87.4 73.8 57.7 56.9 67.8 64.8 58.7 Discontinued operations, net of tax – – – – – – – (0.2 )   Net income attributable to AECOM $ 47.9 $ 87.4 $ 73.8 $ 57.7 $ 56.9 $ 67.8 $ 64.8 $ 58.5         Fiscal Years Ended September 302011       2010       2009       2008   EBITDA $ 525.4 $ 417.5 $ 358.5 $ 284.5 Less: Interest (income) / expense* 39.2 9.9 10.7 (1.3 ) Less: Depreciation and amortization   110.3   78.9   84.1   62.8   Income from continuing operationsattributable to AECOM before income taxes 375.9 328.7 263.7 223.0 Less: Income tax expense   100.1   91.7   77.0   76.5   Income from continuing operationsattributable to AECOM 275.8 237.0 186.7 146.5 Discontinued operations, net of tax   –   (0.1 )   3.0   0.7   Net income attributable to AECOM $ 275.8 $ 236.9 $ 189.7 $ 147.2 * Excluding related amortization. NR 12-0201 AECOM Technology CorporationMedia:Paul Gennaro, 212.973.3167SVP & Chief Communications OfficerPaul.Gennaro@aecom.comorInvestors:Paul Cyril, 212.973.2982SVP, Investor RelationsPaul.Cyril@aecom.com