AECOM reports first quarter fiscal year 2021 results
AECOM (NYSE:ACM) reported its first quarter fiscal year 2021 results, showcasing a 2% revenue increase to $3.3 billion. Operating income surged 62% to $141 million, with net income rising 170% to $83 million. Adjusted diluted EPS reached $0.62, up 35%. The backlog increased 9% to $39.7 billion, reflecting strong demand. Guidance for diluted adjusted EPS is raised to $2.60-$2.80, indicating 26% growth potential from fiscal 2020. However, net service revenue declined 5% organically due to fewer workdays.
- Revenue increased by 2% to $3.3 billion.
- Operating income rose by 62% to $141 million.
- Net income surged by 170% to $83 million.
- Adjusted diluted EPS increased by 35% to $0.62.
- Backlog increased by 9% to $39.7 billion.
- Guidance for diluted adjusted EPS raised to $2.60-$2.80.
- Net service revenue (NSR) declined by 5% on an organic basis.
AECOM (NYSE:ACM), the world’s premier infrastructure consulting firm, today reported first quarter fiscal year 2021 results.
(from Continuing Operations; $ in millions, except EPS) |
As Reported |
Adjusted1
|
As Reported
|
Adjusted
|
Revenue |
|
-- |
|
-- |
Net Service Revenue (NSR)2 |
-- |
|
-- |
( |
Operating Income |
|
|
|
|
Segment Operating Margin4 (on NSR) |
-- |
|
-- |
+140 bps |
Net Income |
|
|
|
|
EPS (Fully Diluted) |
|
|
|
|
EBITDA5 |
-- |
|
-- |
|
Operating Cash Flow |
|
-- |
NM |
-- |
Free Cash Flow6 |
-- |
( |
-- |
|
Backlog |
|
-- |
|
-- |
First Quarter Fiscal 2021 Accomplishments
-
As compared to the prior year, revenue increased by
2% to$3.3 billion , operating income increased by62% to$141 million , the operating margin increased by 160 basis points to4.3% , net income increased by170% to$83 million and diluted earnings per share increased by184% to$0.54 . -
Net service revenue2 (NSR) of
$1.5 billion declined by2% on an organic3 basis after adjusting for the impact of two fewer available workdays in the first quarter compared to the prior year. -
Backlog in the design business increased by
9% over the prior year; contracted backlog across the Professional Services business increased by13% and is at a record level. -
The segment adjusted1 operating margin4 on NSR2 increased by 140 basis points to
13.1% , which is a record high for a first fiscal quarter. -
Adjusted1 diluted earnings per share increased by
35% to$0.62 and adjusted1 EBITDA5 increased by9% to$189 million over the prior year; both metrics exceeded the Company’s expectations. -
Operating cash flow was
$7 million and free cash flow6 was a use of$14 million , which marks the strongest first quarter cash flow since fiscal 2018 and reflects a commitment to delivering more consistent cash flow phasing. - The Company closed on the sale of its Power and Civil construction businesses in October 2020 and January 2021, respectively.
-
The Company has executed
$630 million of stock repurchases since the beginning of September 2020 at an average price of approximately$45 per share, which has reduced the diluted share count by nearly9% to date; the Company has$825 million of capacity remaining under its$1 billion Board repurchase authorization and remains committed to returning to investors substantially all available cash and cash flow after investments are made in the business.
Fiscal 2021 Financial Guidance
-
AECOM is increasing its diluted adjusted1 EPS guidance to between
$2.60 and$2.80 , which would reflect26% growth from fiscal 2020 at the mid-point; this guidance incorporates the benefits from the accelerated pace of share repurchases during the first quarter and lower expected interest expense related to the Company’s amendment to its senior secured credit facility.-
The Company continues to expect adjusted1 EBITDA5 of between
$790 million and$830 million , which would reflect9% growth at the mid-point of the range. -
Other assumptions incorporated into guidance include:
-
A continued expectation to achieve a
13.2% segment adjusted 1 operating margin 4 for the full year, which would reflect an increase of 90 basis points as compared to fiscal 2020. - An average diluted share count for the full year of 151 million.
-
AECOM Capital earnings of between
$5 million to$10 million .
-
A continued expectation to achieve a
-
The Company continues to expect adjusted1 EBITDA5 of between
-
The Company continues to expect free cash flow6 of between
$425 million and$625 million in fiscal 2021, which is consistent with the highly cash generative nature of its Professional Services business and reflects75% unlevered free cash flow conversion of adjusted EBITDA at the mid-point of the range.
“As our strong first quarter results demonstrated, we have successfully positioned AECOM as a pure-play Professional Services business with higher margins, a stronger return on invested capital, and a focused strategy on its largest profit pools with the best growth opportunities,” said Troy Rudd, AECOM’s chief executive officer. “The inherent attributes of our business, including a strong backlog, highly variable cost structure, diverse client base, and an agile culture, position us well to perform across varied market trends and give us confidence to deliver on our strategic and financial commitments.”
“The organization has embraced our Think and Act Globally strategy, which is inspiring our teams to focus on profitable growth and to fully deliver the full suite of AECOM’s Professional Services capabilities to our clients across the globe,” said Lara Poloni, AECOM’s president. “We secured positions on additional key frameworks this quarter that underpin our confidence in our largest international markets, such as the U.K., and our clients are increasingly turning to us to lead their ESG and sustainability initiatives, areas where we excel and are well positioned to deliver growth.”
“Our strong first quarter performance included a 140 basis point increase in the segment adjusted operating margin, resulting in
Business Segments
Americas
Revenue in the first quarter was
Operating income was
International
Revenue in the first quarter was
Operating income was
Discontinued Operations
In October 2020, the Company closed on the sale of its Power construction business and, following the close of the first quarter, the Company closed on the sale of the Civil construction business. Results for discontinued operations included a
Balance Sheet
As of December 31, 2020, inclusive of discontinued operations, AECOM had
New Sustainability-Linked Financing
AECOM also announced separately that it has completed an amendment to its existing senior secured credit facilities that included incentives linked to the achievement of certain sustainability and diversity goals. The transaction extended the maturity of the facilities to 2026 and, reflecting the Company’s commitment to ESG and delivering a better world, the transaction ties a portion of the pricing of its debt to the achievement of certain sustainability and diversity measures, including reducing greenhouse gas emissions at a rate that is consistent with its previously announced Science Based Targets and increasing the percentage of women in the organization.
Tax Rate
The effective tax rate was
Conference Call
AECOM is hosting a conference call tomorrow February 9th at 12 p.m. Eastern Time, during which management will make a brief presentation focusing on the Company's results, strategies and operating trends. Interested parties can listen to the conference call and view accompanying slides via webcast at https://investors.aecom.com. The webcast will be available for replay following the 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 to the comparable GAAP measures.
2 Revenue, net of subcontractor and other direct costs.
3 Organic growth is calculated 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 AECOM Capital.
5 Net income before interest expense, tax expense, depreciation and amortization.
6 Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from equipment disposals.
7 On a constant-currency basis.
8 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.
9 Gross leverage is comprised of EBITDA as defined in the Company’s credit agreement dated October 17, 2014, as amended, which excludes stock-based compensation, and total debt on the Company’s financial statements.
10 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 AECOM
AECOM (NYSE:ACM) is the world’s premier infrastructure consulting firm, delivering professional services throughout the project lifecycle – from planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, energy and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical expertise and innovation, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of
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 AECOM. 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: our business is cyclical and vulnerable to economic downturns and client spending reductions; impacts caused by the coronavirus and the related economic instability and market volatility, including the reaction of governments to the coronavirus, including any prolonged period of travel, commercial or other similar restrictions, the delay in commencement, or temporary or permanent halting of construction, infrastructure or other projects, requirements that we remove our employees or personnel from the field for their protection, and delays or reductions in planned initiatives by our governmental or commercial clients or potential clients; losses under fixed-price contracts; limited control over operations run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; high leverage and potential inability to service our debt and guarantees; exposure to Brexit; exposure to political and economic risks in different countries; currency exchange rate fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; AECOM Capital real estate development projects; managing pension cost; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the Management Services transaction, including the risk that the expected benefits of the Management Services transaction or any contingent purchase price will not be realized within the expected time frame, in full or at all; 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 Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.
Non-GAAP Financial Information
This press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that non-GAAP financial measures such as adjusted EPS, adjusted EBITDA, adjusted net/operating income, adjusted tax rate, net service revenue and free cash flow provide a meaningful perspective on its business results as the Company utilizes this information to evaluate and manage the business. We use adjusted EBITDA, adjusted EPS, adjusted net/operating income and adjusted tax rate to exclude the impact of non-operating items, such as amortization expense, taxes and non-core operating losses to aid investors in better understanding our core performance results. We use free cash flow to represent the cash generated after capital expenditures to maintain our business. We present constant currency information to help assess how our underlying businesses performed excluding the effect of foreign currency rate fluctuations to aid investors in better understanding our international operational performance. We present net service revenue to exclude subcontractor costs from revenue to provide investors with a better understanding of our operational performance. We present segment adjusted operating margin to reflect segment operating performance of our Americas and International segments, excluding AECOM Capital.
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.
AECOM |
||||||||||
Consolidated Statement of Income |
||||||||||
(unaudited - in thousands, except per share data) |
||||||||||
|
||||||||||
|
Three Months Ended |
|||||||||
|
December 31, 2019 |
|
December 31, 2020 |
|
% Change |
|||||
|
|
|
|
|
|
|||||
Revenue |
$ |
3,235,610 |
|
|
$ |
3,313,155 |
|
|
2.4 |
% |
Cost of revenue |
|
3,069,810 |
|
|
|
3,128,785 |
|
|
1.9 |
% |
Gross profit |
|
165,800 |
|
|
|
184,370 |
|
|
11.2 |
% |
Equity in earnings of joint ventures |
|
9,928 |
|
|
|
8,201 |
|
|
(17.4 |
%) |
General and administrative expenses |
|
(43,614 |
) |
|
|
(38,360 |
) |
|
(12.0 |
%) |
Restructuring costs |
|
(44,925 |
) |
|
|
(13,038 |
) |
|
(71.0 |
%) |
Income from operations |
|
87,189 |
|
|
|
141,173 |
|
|
61.9 |
% |
Other income |
|
4,008 |
|
|
|
3,853 |
|
|
(3.9 |
%) |
Interest expense |
|
(40,377 |
) |
|
|
(30,651 |
) |
|
(24.1 |
%) |
Income before income tax expense |
|
50,820 |
|
|
|
114,375 |
|
|
125.1 |
% |
Income tax expense |
|
15,906 |
|
|
|
25,601 |
|
|
61.0 |
% |
Income from continuing operations |
|
34,914 |
|
|
|
88,774 |
|
|
154.3 |
% |
Income (loss) from discontinued operations |
|
18,180 |
|
|
|
(55,752 |
) |
|
(406.7 |
%) |
Net income |
|
53,094 |
|
|
|
33,022 |
|
|
(37.8 |
%) |
Net income attributable to noncontrolling interests
|
|
(4,047 |
) |
|
|
(5,414 |
) |
|
33.8 |
% |
Net income attributable to noncontrolling interests
|
|
(8,443 |
) |
|
|
(1,480 |
) |
|
(82.5 |
%) |
Net income attributable to noncontrolling interests |
|
(12,490 |
) |
|
|
(6,894 |
) |
|
(44.8 |
%) |
Net income attributable to AECOM from continuing operations |
|
30,867 |
|
|
|
83,360 |
|
|
170.1 |
% |
Net income (loss) attributable to AECOM from discontinued operations |
|
9,737 |
|
|
|
(57,232 |
) |
|
(687.8 |
%) |
Net income attributable to AECOM |
$ |
40,604 |
|
|
$ |
26,128 |
|
|
(35.7 |
%) |
|
|
|
|
|
|
|||||
Net income (loss) attributable to AECOM per share: |
|
|
|
|
|
|||||
Basic |
|
|
|
|
|
|||||
Continuing operations |
$ |
0.20 |
|
|
$ |
0.55 |
|
|
175.0 |
% |
Discontinued operations |
|
0.06 |
|
|
|
(0.38 |
) |
|
(733.3 |
%) |
Basic earnings per share |
$ |
0.26 |
|
|
$ |
0.17 |
|
|
(34.6 |
%) |
|
|
|
|
|
|
|||||
Diluted |
|
|
|
|
|
|||||
Continuing operations |
$ |
0.19 |
|
|
$ |
0.54 |
|
|
184.2 |
% |
Discontinued operations |
|
0.06 |
|
|
|
(0.37 |
) |
|
(716.7 |
%) |
Diluted earnings per share |
$ |
0.25 |
|
|
$ |
0.17 |
|
|
(32.0 |
%) |
|
|
|
|
|
|
|||||
Weighted average shares outstanding: |
|
|
|
|
|
|||||
Basic |
|
157,332 |
|
|
|
151,424 |
|
|
(3.8 |
%) |
Diluted |
|
160,657 |
|
|
|
153,744 |
|
|
(4.3 |
%) |
AECOM |
||||||
Balance Sheet Information |
||||||
(unaudited - in thousands) |
||||||
|
|
|
|
|||
|
September 30, 2020 |
|
December 31, 2020 |
|||
Balance Sheet Information: |
|
|
|
|||
Total cash and cash equivalents |
$ |
1,708,332 |
|
$ |
1,044,748 |
|
Accounts receivable and contract assets, net |
|
4,402,277 |
|
|
4,419,506 |
|
Working capital |
|
1,439,912 |
|
|
899,296 |
|
Total debt, excluding unamortized debt issuance costs |
|
2,085,017 |
|
|
2,090,706 |
|
Total assets |
|
12,998,951 |
|
|
12,504,555 |
|
Total AECOM stockholders’ equity |
|
3,292,558 |
|
|
2,908,204 |
|
AECOM |
|
||||||||||||||||||||||
Reportable Segments |
|
||||||||||||||||||||||
(unaudited - in thousands) |
|
||||||||||||||||||||||
|
|
|
Americas |
|
International |
|
AECOM
|
|
Corporate |
|
Total |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Three Months Ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
2,557,260 |
|
|
$ |
755,611 |
|
|
$ |
284 |
|
|
$ |
— |
|
|
$ |
3,313,155 |
|
|
||
Cost of revenue |
|
2,412,228 |
|
|
716,557 |
|
|
— |
|
|
— |
|
|
|
3,128,785 |
|
|
||||||
Gross profit |
|
145,032 |
|
|
39,054 |
|
|
284 |
|
|
— |
|
|
|
184,370 |
|
|
||||||
Equity in earnings of joint ventures |
|
1,407 |
|
|
3,008 |
|
|
3,786 |
|
|
— |
|
|
|
8,201 |
|
|
||||||
General and administrative expenses |
|
— |
|
|
— |
|
|
(1,929 |
) |
|
(36,431 |
) |
|
|
(38,360 |
) |
|
||||||
Restructuring costs |
|
— |
|
|
— |
|
|
— |
|
|
(13,038 |
) |
|
|
(13,038 |
) |
|
||||||
Income (loss) from operations |
|
$ |
146,439 |
|
|
$ |
42,062 |
|
|
$ |
2,141 |
|
|
$ |
(49,469 |
) |
|
$ |
141,173 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit as a % of revenue |
|
5.7 |
% |
|
5.2 |
% |
|
— |
|
|
— |
|
|
|
5.6 |
% |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contracted backlog |
|
$ |
16,018,392 |
|
|
$ |
3,829,735 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
19,848,127 |
|
|
||
Awarded backlog |
|
18,331,069 |
|
|
1,066,746 |
|
|
— |
|
|
— |
|
|
19,397,815 |
|
|
|||||||
Unconsolidated JV backlog |
|
472,739 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
472,739 |
|
|
||||||
Total backlog |
|
$ |
34,822,200 |
|
|
$ |
4,896,481 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
39,718,681 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three Months Ended December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
|
$ |
2,451,982 |
|
|
$ |
783,095 |
|
|
$ |
533 |
|
|
$ |
— |
|
|
$ |
3,235,610 |
|
|
||
Cost of revenue |
|
2,312,550 |
|
|
757,260 |
|
|
— |
|
|
— |
|
|
|
3,069,810 |
|
|
||||||
Gross profit |
|
139,432 |
|
|
25,835 |
|
|
533 |
|
|
— |
|
|
|
165,800 |
|
|
||||||
Equity in earnings of joint ventures |
|
6,429 |
|
|
2,836 |
|
|
663 |
|
|
— |
|
|
|
9,928 |
|
|
||||||
General and administrative expenses |
|
— |
|
|
— |
|
|
(2,419 |
) |
|
(41,195 |
) |
|
|
(43,614 |
) |
|
||||||
Restructuring costs |
|
— |
|
|
— |
|
|
— |
|
|
(44,925 |
) |
|
|
(44,925 |
) |
|
||||||
Income (loss) from operations |
|
$ |
145,861 |
|
|
$ |
28,671 |
|
|
$ |
(1,223 |
) |
|
$ |
(86,120 |
) |
|
$ |
87,189 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit as a % of revenue |
|
5.7 |
% |
|
3.3 |
% |
|
— |
|
|
— |
|
|
|
5.1 |
% |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contracted backlog |
|
$ |
13,949,059 |
|
|
$ |
3,610,945 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
17,560,004 |
|
|
||
Awarded backlog |
|
17,248,843 |
|
|
843,248 |
|
|
— |
|
|
— |
|
|
18,092,091 |
|
|
|||||||
Unconsolidated JV backlog |
|
865,791 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
865,791 |
|
|
||||||
Total backlog |
|
$ |
32,063,693 |
|
|
$ |
4,454,193 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
36,517,886 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
AECOM Regulation G Information (in millions) |
|||||||||
Reconciliation of Revenue to Revenue, Net of Subcontractor and Other Direct Costs (NSR) |
|||||||||
|
Three Months Ended |
|
|||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|||
|
|
|
|
||||||
Americas |
|
|
|
|
|
|
|||
Revenue |
$ |
2,452.0 |
|
$ |
2,732.3 |
|
$ |
2,557.3 |
|
Less: subcontractor and other direct costs |
|
1,546.4 |
|
|
1,803.2 |
|
|
1,694.3 |
|
Revenue, net of subcontractor and other direct costs |
$ |
905.6 |
|
$ |
929.1 |
|
$ |
863.0 |
|
|
|
|
|
|
|
|
|||
International |
|
|
|
|
|
|
|||
Revenue |
$ |
783.1 |
|
$ |
831.1 |
|
$ |
755.6 |
|
Less: subcontractor and other direct costs |
|
149.5 |
|
|
201.4 |
|
|
142.6 |
|
Revenue, net of subcontractor and other direct costs |
$ |
633.6 |
|
$ |
629.7 |
|
$ |
613.0 |
|
|
|
|
|
|
|
|
|||
Segment Performance (excludes ACAP) |
|
|
|
|
|
|
|||
Revenue |
$ |
3,235.1 |
|
$ |
3,563.4 |
|
$ |
3,312.9 |
|
Less: subcontractor and other direct costs |
|
1,695.9 |
|
|
2,004.6 |
|
|
1,836.9 |
|
Revenue, net of subcontractor and other direct costs |
$ |
1,539.2 |
|
$ |
1,558.8 |
|
$ |
1,476.0 |
|
|
|
|
|
|
|
|
|||
Consolidated |
|
|
|
|
|
|
|||
Revenue |
$ |
3,235.6 |
|
$ |
3,569.0 |
|
$ |
3,313.2 |
|
Less: subcontractor and other direct costs |
|
1,695.9 |
|
|
2,004.6 |
|
|
1,836.9 |
|
Revenue, net of subcontractor and other direct costs |
$ |
1,539.7 |
|
$ |
1,564.4 |
|
$ |
1,476.3 |
|
|
|
|
|
|
|
|
Reconciliation of Total Debt to Net Debt |
|
||||||||
|
Balances at |
||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
||||
|
|
|
|||||||
|
|
|
|
|
|||||
Short-term debt |
$ |
55.0 |
|
$ |
0.2 |
|
$ |
2.3 |
|
Current portion of long-term debt |
|
56.6 |
|
|
20.7 |
|
|
22.0 |
|
Long-term debt, gross |
|
3,392.3 |
|
|
2,064.1 |
|
|
2,066.4 |
|
Total debt, excluding unamortized debt issuance costs |
|
3,503.9 |
|
|
2,085.0 |
|
|
2,090.7 |
|
Less: Total cash and cash equivalents |
|
725.4 |
|
|
1,708.3 |
|
|
1,044.7 |
|
Net debt |
$ |
2,778.5 |
|
$ |
376.7 |
|
$ |
1,046.0 |
|
|
|
|
|
|
|
||||
Reconciliation of Net Cash (Used in) Provided by Operating Activities to Free Cash Flow |
|||||||||||||
|
Three Months Ended |
|
|||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|||||||
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||
Net cash (used in) provided by operating activities |
$ |
(206.9 |
) |
|
$ |
649.3 |
|
|
$ |
7.1 |
|
|
|
Capital expenditures, net |
|
(31.1 |
) |
|
|
(30.0 |
) |
|
|
(21.3 |
) |
|
|
Free cash flow |
$ |
(238.0 |
) |
|
$ |
619.3 |
|
|
$ |
(14.2 |
) |
|
|
|
|
|
|
|
|
|
|||||||
AECOM |
|||||||||||
Regulation G Information |
|||||||||||
(in millions, except per share data) |
|||||||||||
|
Three Months Ended |
||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Dec 31,
|
||||||
Reconciliation of Income from Operations to Adjusted Income from Operations |
|||||||||||
Income from operations |
$ |
87.2 |
|
|
$ |
65.3 |
|
|
$ |
141.2 |
|
Noncore operating losses & transaction related expenses |
|
5.6 |
|
|
|
— |
|
|
|
— |
|
Accelerated depreciation of project management tool |
|
— |
|
|
|
6.9 |
|
|
|
— |
|
Restructuring costs |
|
44.9 |
|
|
|
91.9 |
|
|
|
13.0 |
|
Amortization of intangible assets |
|
6.1 |
|
|
|
5.8 |
|
|
|
5.3 |
|
Adjusted income from operations |
$ |
143.8 |
|
|
$ |
169.9 |
|
|
$ |
159.5 |
|
|
|
|
|
|
|
||||||
Reconciliation of Income from Continuing Operations Before Taxes to
|
|||||||||||
Income from continuing operations before tax expense |
$ |
50.8 |
|
|
$ |
19.3 |
|
|
$ |
114.4 |
|
Noncore operating losses & transaction related expenses |
|
5.6 |
|
|
|
— |
|
|
|
— |
|
Accelerated depreciation of project management tool |
|
— |
|
|
|
6.9 |
|
|
|
— |
|
Restructuring costs |
|
44.9 |
|
|
|
91.9 |
|
|
|
13.0 |
|
Amortization of intangible assets |
|
6.1 |
|
|
|
5.8 |
|
|
|
5.3 |
|
Financing charges in interest expense |
|
2.0 |
|
|
|
18.6 |
|
|
|
1.8 |
|
Adjusted income from continuing operations before tax expense |
$ |
109.4 |
|
|
$ |
142.5 |
|
|
$ |
134.5 |
|
|
|
|
|
|
|
||||||
Reconciliation of Income Taxes for Continuing Operations to
|
|||||||||||
Income tax expense for continuing operations |
$ |
15.9 |
|
|
$ |
15.5 |
|
|
$ |
25.6 |
|
Tax effect of the above adjustments* |
|
15.2 |
|
|
|
32.7 |
|
|
|
5.5 |
|
Valuation allowances and other tax only items |
|
(0.4 |
) |
|
|
(6.7 |
) |
|
|
2.7 |
|
Adjusted income tax expense for continuing operations |
$ |
30.7 |
|
|
$ |
41.5 |
|
|
$ |
33.8 |
|
* 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 Noncontrolling Interests from Continuing Operations to
|
|||||||||||
Net income attributable to noncontrolling interests from continuing operations |
$ |
(4.0 |
) |
|
$ |
(4.0 |
) |
|
$ |
(5.4 |
) |
Amortization of intangible assets included in NCI, net of tax |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
Adjusted net income attributable to noncontrolling interests from continuing operations |
$ |
(4.1 |
) |
|
$ |
(4.2 |
) |
|
$ |
(5.5 |
) |
|
|||||||||||
Reconciliation of Net Income (Loss) Attributable to AECOM from Continuing Operations to
|
|||||||||||
Net income (loss) attributable to AECOM from continuing operations |
$ |
30.9 |
|
|
$ |
(0.1 |
) |
|
$ |
83.4 |
|
Noncore operating losses & transaction related expenses |
|
5.6 |
|
|
|
— |
|
|
|
— |
|
Accelerated depreciation of project management tool |
|
— |
|
|
|
6.9 |
|
|
|
— |
|
Restructuring costs |
|
44.9 |
|
|
|
91.9 |
|
|
|
13.0 |
|
Amortization of intangible assets |
|
6.1 |
|
|
|
5.8 |
|
|
|
5.3 |
|
Financing charges in interest expense |
|
2.0 |
|
|
|
18.6 |
|
|
|
1.8 |
|
Tax effect of the above adjustments* |
|
(15.2 |
) |
|
|
(32.7 |
) |
|
|
(5.5 |
) |
Valuation allowances and other tax only items |
|
0.4 |
|
|
|
6.7 |
|
|
|
(2.7 |
) |
Amortization of intangible assets included in NCI, net of tax |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
Adjusted net income attributable to AECOM from continuing operations |
$ |
74.6 |
|
|
$ |
96.9 |
|
|
$ |
95.2 |
|
* 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. |
AECOM
|
|||||||||||
Three Months Ended |
|||||||||||
Dec 31,
|
Sep 30,
|
Dec 31,
|
|||||||||
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share |
|
||||||||||
Net income attributable to AECOM - per diluted share |
$ |
0.19 |
|
$ |
- |
|
$ |
0.54 |
|||
Per diluted share adjustments: |
|
|
|
|
|
|
|
|
|||
Noncore operating losses & transaction related expenses |
|
0.03 |
|
|
- |
|
|
- |
|||
Accelerated depreciation of project management tool |
|
- |
|
|
0.04 |
|
|
- |
|||
Restructuring costs |
|
0.28 |
|
|
0.57 |
|
|
0.09 |
|||
Amortization of intangible assets |
|
0.04 |
|
|
0.04 |
|
|
0.04 |
|||
Financing charges in interest expense |
|
0.01 |
|
|
0.11 |
|
|
0.01 |
|||
Tax effect of the above adjustments* |
(0.09 |
) |
(0.20 |
) |
(0.04 |
) |
|||||
Valuation allowances and other tax only items |
|
- |
|
|
0.04 |
|
|
(0.02 |
) |
||
Adjusted net income attributable to AECOM - per diluted shares |
$ |
0.46 |
|
$ |
0.60 |
|
$ |
0.62 |
|||
|
|
||||||||||
Weighted average shares outstanding - basic |
|
157.3 |
|
|
160.0 |
|
|
151.4 |
|||
Weighted average shares outstanding - diluted |
|
160.7 |
|
|
162.0 |
|
|
153.7 |
|||
* 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 (Loss) Attributable to AECOM from Continuing Operations to EBITDA to Adjusted EBITDA and to Adjusted Income from Operations
Net income (loss) attributable to AECOM from continuing operations |
$ |
30.9 |
|
|
$ |
(0.1 |
) |
|
$ |
83.4 |
|
Income tax expense |
|
15.9 |
|
|
|
15.5 |
|
|
|
25.6 |
|
Depreciation and amortization |
|
41.1 |
|
|
|
51.6 |
|
|
|
39.4 |
|
Interest income(2) |
|
(3.4 |
) |
|
|
(0.8 |
) |
|
|
(1.3 |
) |
Interest expense |
|
40.3 |
|
|
|
47.5 |
|
|
|
30.7 |
|
Amortized bank fees included in interest expense |
|
(2.0 |
) |
|
|
(1.6 |
) |
|
|
(1.8 |
) |
EBITDA |
$ |
122.8 |
|
|
$ |
112.1 |
|
|
$ |
176.0 |
|
Noncore operating losses & transaction related expenses |
|
5.6 |
|
|
|
— |
|
|
|
— |
|
Restructuring costs |
|
45.0 |
|
|
|
91.9 |
|
|
|
13.0 |
|
Adjusted EBITDA |
$ |
173.4 |
|
|
$ |
204.0 |
|
|
$ |
189.0 |
|
Other income |
|
(4.0 |
) |
|
|
(1.5 |
) |
|
|
(3.9 |
) |
Depreciation(1) |
|
(33.1 |
) |
|
|
(37.6 |
) |
|
|
(32.4 |
) |
Interest income(2) |
|
3.4 |
|
|
|
0.8 |
|
|
|
1.3 |
|
Noncontrolling interests in income of consolidated subsidiaries,
|
|
4.0 |
|
|
|
4.0 |
|
|
|
5.4 |
|
Amortization of intangible assets included in NCI, net of tax |
|
0.1 |
|
|
|
0.2 |
|
|
|
0.1 |
|
Adjusted income from operations |
$ |
143.8 |
|
|
$ |
169.9 |
|
|
$ |
159.5 |
|
(1) Excludes depreciation from discontinued operations, noncore operating losses, and accelerated depreciation of project management tool.
|
|||||||||||
|
|||||||||||
Reconciliation of Segment Income from Operations to Adjusted Income from Operations |
|||||||||||
Americas Segment: |
|||||||||||
Income from operations |
$ |
145.8 |
|
|
$ |
152.6 |
|
|
$ |
146.4 |
|
Amortization of intangible assets |
|
4.7 |
|
|
|
4.4 |
|
|
|
4.3 |
|
Adjusted income from operations |
$ |
150.5 |
|
|
$ |
157.0 |
|
|
$ |
150.7 |
|
|
|||||||||||
International Segment: |
|||||||||||
Income from operations |
$ |
28.7 |
|
|
$ |
39.7 |
|
|
$ |
42.1 |
|
Noncore operating losses & transaction related expenses |
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
Amortization of intangible assets |
|
1.4 |
|
|
|
1.4 |
|
|
|
1.0 |
|
Adjusted income from operations |
$ |
30.0 |
|
|
$ |
41.1 |
|
|
$ |
43.1 |
|
|
|||||||||||
Segment Performance (excludes ACAP): |
|||||||||||
Income from operations |
$ |
174.5 |
|
|
$ |
192.3 |
|
|
$ |
188.5 |
|
Noncore operating losses & transaction related expenses |
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
Amortization of intangible assets |
|
6.1 |
|
|
|
5.8 |
|
|
|
5.3 |
|
Adjusted income from operations |
$ |
180.5 |
|
|
$ |
198.1 |
|
|
$ |
193.8 |
|
AECOM |
|
||||||||||||||
Regulation G Information |
|
||||||||||||||
|
FY21 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 |
|
|
|
|||||||||||
|
Restructuring |
|
|
|
|||||||||||
|
Tax effect of the above items |
|
( |
|
|||||||||||
|
Adjusted EPS Guidance |
|
|
|
|||||||||||
|
|
|
|||||||||||||
|
FY21 GAAP Net Income Attributable to AECOM from Continuing Operations Guidance based on
|
||||||||||||||
|
(in millions, all figures approximate) |
Fiscal Year End 2021 |
|
||||||||||||
|
GAAP net income attributable to AECOM from continuing operations guidance |
|
|
|
|||||||||||
|
Adjusted net income attributable to AECOM from continuing operations excludes: |
|
|
|
|||||||||||
|
Amortization of intangible assets |
|
|
|
|||||||||||
|
Amortization of deferred financing fees |
|
|
|
|||||||||||
|
Restructuring* |
|
|
|
|||||||||||
|
Tax effect of the above items |
|
( |
|
|||||||||||
|
Adjusted net income attributable to AECOM from continuing operations |
|
|
|
|||||||||||
|
Adjusted EBITDA excludes: |
|
|
|
|||||||||||
|
Adjusted interest expense, net |
|
|
|
|||||||||||
|
Depreciation |
|
|
|
|||||||||||
|
Income tax expense, including tax effect of above items |
|
|
|
|||||||||||
|
Adjusted EBITDA Guidance |
|
|
|
|||||||||||
|
*Calculated based on the mid-point of AECOM’s fiscal year 2021 guidance. |
|
|||||||||||||
FY21 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 |
|
( |
|
|||
Interest income |
|
( |
|
|||
Adjusted Interest Expense Guidance |
|
|
|
|||
Note: Variances within tables are due to rounding. |
||||||
Reconciliation of FY21 Operating Cash Flow Guidance to 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 |
|
|
|
||
Reconciliation of Income from Operations as a % of Revenue to Segment Adjusted Operating Income as a % of Net Service Revenue |
|||||
|
Fiscal Year End 2021 |
|
|||
|
|
|
|
||
Income from operations as a % of revenue |
|
|
|
||
ACAP income from operations |
|
( |
|
||
Corporate net expenses |
|
|
|
||
Restructuring expenses* |
|
|
|
||
Subcontractor and other direct costs |
|
|
|
||
Amortization of intangibles assets |
|
|
|
||
Segment adjusted operating income as a % of net service revenue |
|
|
|
||
* Calculated based on the mid-point of AECOM’s fiscal year 2021 guidance. Note: Variances within tables are due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210208005737/en/
FAQ
What were AECOM's Q1 2021 earnings results?
How did AECOM's backlog change in Q1 2021?
What is the guidance for AECOM's diluted EPS for fiscal 2021?
What are the key metrics for AECOM in Q1 2021?