AECOM reports third quarter fiscal 2022 results
AECOM (NYSE:ACM) reported third quarter fiscal 2022 results with notable highlights. Revenue decreased by 5% to $3.2 billion, while net service revenue (NSR) grew by 6% to $1.6 billion. Operating income rose 14% to $183 million, with net income up 282% to $107 million. Diluted EPS surged 295% to $0.75. AECOM's total backlog reached $41.1 billion, marking a 10% increase in design backlog. The company increased its fiscal 2022 adjusted EPS guidance to between $3.35 and $3.50, reflecting strong operational performance and client demand.
- Net service revenue growth accelerated to 6%, indicating robust client budgets and record backlog.
- Increased mid-point of adjusted EPS guidance for fiscal 2022 to $3.35-$3.50, suggesting strong operational performance.
- Operating income rose by 14% to $183 million, leading to improved operating margin of 5.6%.
- Total backlog increased to $41.1 billion, with a book-to-burn ratio of 1.2, highlighting solid business wins.
- Revenue decreased by 5% year-over-year, raising concerns about top-line performance.
- Organic NSR growth accelerated consistent with the Company’s expectations
- Margins reached a new high for a fiscal third quarter
-
Total design backlog at constant-currency increased
10% to a new high - Strong cash flow enabled capital returns through dividends and repurchases
- Increased the mid-point of adjusted EPS guidance for fiscal 2022, reflecting strong operational performance
- Reiterated long-term fiscal 2024 financial targets
|
Third Quarter Fiscal 2022 |
|
Year-to-Date Fiscal 2022 |
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(from Continuing Operations; $ in millions, except EPS) |
As
|
Adjusted1 (Non-GAAP) |
As
|
Adjusted
|
|
As
|
Adjusted1 (Non-GAAP) |
As
|
Adjusted
|
Revenue |
|
-- |
( |
-- |
|
|
-- |
( |
-- |
Net Service Revenue (NSR)2 |
-- |
|
-- |
|
|
-- |
|
-- |
|
Operating Income |
|
|
|
|
|
|
|
|
|
Segment Operating Margin3 (NSR) |
-- |
|
-- |
+50 bps |
|
-- |
|
-- |
+60 bps |
Net Income |
|
|
|
|
|
|
|
|
|
EPS (Fully Diluted) |
|
|
|
|
|
|
|
|
|
EBITDA4 |
-- |
|
-- |
|
|
-- |
|
-- |
|
Operating Cash Flow |
|
-- |
( |
-- |
|
|
-- |
|
-- |
Free Cash Flow5 |
-- |
|
-- |
( |
|
-- |
|
-- |
|
Third Quarter Fiscal 2022 Highlights
-
Revenue decreased
5% to$3.2 billion 14% to$183 million 5.6% , net income increased282% to$107 million 295% to$0.75 -
Net service revenue2 growth accelerated to
6% , with growth across the business.
– This performance was underpinned by strong client budgets, a continued record high win rate and a record backlog in the Company’s design business.
-
The segment adjusted1 operating margin3 increased 50 basis points to
14.6% , which marked a new high for a fiscal third quarter, reflecting strong execution and the Company’s focus on allocating time and resources to the highest returning and best growth opportunities. -
Adjusted1 EBITDA4 increased by
7% and adjusted1 EPS increased by18% . -
Total backlog of
$41.1 billion 10% 6 growth in the design business; contracted backlog increased by17% .
– Strong wins resulted in a 1.2 book-to-burn ratio7 across the enterprise, highlighted by a 1.5 book-to-burn ratio in the
Cash Flow, Balance Sheet and Capital Allocation Update
-
Third quarter operating cash flow of
$205 million $183 million 15% . - The Company’s capital allocation policy is built on the continued intent to return substantially all available cash flow to stockholders through share repurchases and dividends.
– Returned more than
– Capital returns over the past 12 months equate to approximately
– Repurchased more than
Increased Fiscal 2022 EPS Guidance and Affirmed Long-Term Fiscal 2024 Financial Targets
-
AECOM raised the mid-point its fiscal 2022 diluted adjusted1 EPS guidance to between$3.35 $3.50 21% growth over the prior year and reflect strong operational performance. -
The Company also affirmed the mid-point and narrowed the range for adjusted1 EBITDA4 guidance to between
$890 $910 million 8% growth at the mid-point. - Guidance includes the following assumptions:
– Approximately
– A segment adjusted1 operating margin3 of at least
– An average fully diluted share count of 143 million, reflecting only shares repurchased to date, even as the Company intends to continue to repurchase stock consistent with its capital allocation policy.
– An effective tax rate of approximately
–
-
The Company continues to expect free cash flow5 of between
$450 million $650 million -
The Company also reiterated its long-term financial targets for fiscal 2024, which include an expectation for adjusted1 EPS of
$4 15% segment adjusted1 operating margin3, and a15% return on invested capital8, as well as a long-term segment adjusted operating margin goal of17% .
“We continue to execute well on our shared purpose of delivering a better world, which has resulted in consistent outperformance, including
“Our professionals have embraced our Think and Act Globally strategy, which is directly translating to strong employee engagement, client satisfaction and financial results,” said
“Our third quarter and year-to-date results, along with our increased adjusted EPS guidance, are a testament to our professionals, our strategy and our capital allocation discipline, which are allowing us to deliver through varied macroeconomic backdrops and external factors, including the rapid appreciation of the
Business Segments
Revenue in the third quarter was
Operating income increased by
International
Revenue in the third quarter was
Operating income increased by
Balance Sheet
As of
Tax Rate
The effective tax rate was
Conference Call
1 Excludes the impact of non-operating items, such as non-core operating losses and transaction-related expenses, restructuring costs and other items. See Regulation G Information for a reconciliation of non-GAAP measures to the comparable GAAP measures.
2 Revenue, less pass-through revenue; growth rates are presented on a constant-currency basis.
3 Reflects segment operating performance, excluding
4 Net income before interest expense, tax expense, depreciation and amortization.
5 Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from equipment disposals.
6 On a constant-currency basis.
7 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.
8 Return on invested capital, or ROIC, is calculated as the sum of adjusted net income as presented in the Company’s Regulation G Information and interest expense, net of interest income, divided by average quarterly invested capital as defined as the sum of attributable shareholder’s equity and total debt, less cash and cash equivalents.
9 Net leverage is comprised of EBITDA as defined in the Company’s credit agreement dated
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
Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, coronavirus impacts, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of
Non-GAAP Financial Information
This press release contains financial information calculated other than in accordance with
Our non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of these non-GAAP measures is found in the Regulation G Information tables at the back of this release. The Company is unable to reconcile its non-GAAP financial guidance and long-term financial targets due to uncertainties in these non-operating items as well as other adjustments to net income.
Consolidated Statements of Income (unaudited - in thousands, except per share data) |
||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
|
|
%
|
|
|
%
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
$ |
3,408,357 |
|
$ |
3,241,695 |
|
(4.9 |
)% |
$ |
9,987,085 |
|
$ |
9,722,069 |
|
(2.7 |
)% |
||||||
Cost of revenue |
|
3,206,823 |
|
|
3,021,145 |
|
(5.8 |
)% |
|
9,405,922 |
|
|
9,091,363 |
|
(3.3 |
)% |
||||||
Gross profit |
|
201,534 |
|
|
220,550 |
|
9.4 |
% |
|
581,163 |
|
|
630,706 |
|
8.5 |
% |
||||||
Equity in earnings of joint ventures |
|
8,270 |
|
|
7,489 |
|
(9.4 |
)% |
|
23,628 |
|
|
27,358 |
|
15.8 |
% |
||||||
General and administrative expenses |
|
(36,340 |
) |
|
(32,766 |
) |
(9.8 |
)% |
|
(110,707 |
) |
|
(106,365 |
) |
(3.9 |
)% |
||||||
Restructuring costs |
|
(12,971 |
) |
|
(12,264 |
) |
(5.5 |
)% |
|
(34,755 |
) |
|
(88,927 |
) |
155.9 |
% |
||||||
Income from operations |
|
160,493 |
|
|
183,009 |
|
14.0 |
% |
|
459,329 |
|
|
462,772 |
|
0.7 |
% |
||||||
Other income |
|
4,482 |
|
|
4,314 |
|
(3.7 |
)% |
|
11,812 |
|
|
10,517 |
|
(11.0 |
)% |
||||||
Interest expense |
|
(149,038 |
) |
|
(27,416 |
) |
(81.6 |
)% |
|
(212,489 |
) |
|
(76,972 |
) |
(63.8 |
)% |
||||||
Income from continuing operations before taxes |
|
15,937 |
|
|
159,907 |
|
903.4 |
% |
|
258,652 |
|
|
396,317 |
|
53.2 |
% |
||||||
Income tax (benefit) expense for continuing operations |
|
(17,938 |
) |
|
44,517 |
|
(348.2 |
)% |
|
42,811 |
|
|
103,084 |
|
140.8 |
% |
||||||
Income from continuing operations |
|
33,875 |
|
|
115,390 |
|
240.6 |
% |
|
215,841 |
|
|
293,233 |
|
35.9 |
% |
||||||
Loss from discontinued operations |
|
(15,502 |
) |
|
(3,481 |
) |
(77.5 |
)% |
|
(119,168 |
) |
|
(71,534 |
) |
(40.0 |
)% |
||||||
Net income |
|
18,373 |
|
|
111,909 |
|
509.1 |
% |
|
96,673 |
|
|
221,699 |
|
129.3 |
% |
||||||
Net income attributable to noncontrolling interests
|
|
(5,901 |
) |
|
(8,487 |
) |
43.8 |
% |
|
(16,160 |
) |
|
(19,535 |
) |
20.9 |
% |
||||||
Net (income) loss attributable to noncontrolling interests from discontinued operations |
|
(941 |
) |
|
(1,534 |
) |
63.0 |
% |
|
(3,495 |
) |
|
2,829 |
|
(180.9 |
)% |
||||||
Net income attributable to noncontrolling interests |
|
(6,842 |
) |
|
(10,021 |
) |
46.5 |
% |
|
(19,655 |
) |
|
(16,706 |
) |
(15.0 |
)% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Net income attributable to |
|
27,974 |
|
|
106,903 |
|
282.2 |
% |
|
199,681 |
|
|
273,698 |
|
37.1 |
% |
||||||
Net loss attributable to |
|
(16,443 |
) |
|
(5,015 |
) |
(69.5 |
)% |
|
(122,663 |
) |
|
(68,705 |
) |
(44.0 |
)% |
||||||
Net income attributable to |
$ |
11,531 |
|
$ |
101,888 |
|
783.6 |
% |
$ |
77,018 |
|
$ |
204,993 |
|
166.2 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss) attributable to |
|
|
|
|
|
|
||||||||||||||||
Basic continuing operations per share |
$ |
0.19 |
|
$ |
0.76 |
|
300.0 |
% |
$ |
1.35 |
|
$ |
1.94 |
|
43.7 |
% |
||||||
Basic discontinued operations per share |
|
(0.11 |
) |
|
(0.04 |
) |
(63.6 |
)% |
|
(0.83 |
) |
|
(0.49 |
) |
(41.0 |
)% |
||||||
Basic earnings per share |
$ |
0.08 |
|
$ |
0.72 |
|
800.0 |
% |
$ |
0.52 |
|
$ |
1.45 |
|
178.8 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Diluted continuing operations per share |
$ |
0.19 |
|
$ |
0.75 |
|
294.7 |
% |
$ |
1.32 |
|
$ |
1.91 |
|
44.7 |
% |
||||||
Diluted discontinued operations per share |
|
(0.11 |
) |
|
(0.03 |
) |
(72.7 |
)% |
|
(0.81 |
) |
|
(0.48 |
) |
(40.7 |
)% |
||||||
Diluted earnings per share |
$ |
0.08 |
|
$ |
0.72 |
|
800.0 |
% |
$ |
0.51 |
|
$ |
1.43 |
|
180.4 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
||||||||||||||||
Basic |
|
146,109 |
|
|
140,608 |
|
(3.8 |
)% |
|
148,434 |
|
|
141,149 |
|
(4.9 |
)% |
||||||
Diluted |
|
148,859 |
|
|
142,178 |
|
(4.5 |
)% |
|
150,707 |
|
|
143,147 |
|
(5.0 |
)% |
||||||
Balance Sheet Information (unaudited - in thousands) |
||||||
|
|
|
||||
Balance Sheet Information: |
|
|
||||
Total cash and cash equivalents |
$ |
1,229,196 |
$ |
1,010,722 |
||
Accounts receivable and contract assets, net |
|
3,988,522 |
|
3,874,683 |
||
Working capital |
|
651,828 |
|
330,848 |
||
Total debt, excluding unamortized debt issuance costs |
|
2,235,661 |
|
2,227,434 |
||
Total assets |
|
11,733,954 |
|
11,248,347 |
||
Total |
|
2,712,470 |
|
2,451,010 |
||
Reportable Segments (unaudited - in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
International |
|
Corporate |
Total |
|||||||||||||||
| Three Months Ended
|
|
|
|
|
|
|||||||||||||||
Revenue |
$ |
2,456,954 |
|
$ |
784,169 |
|
$ |
572 |
|
$ |
- |
|
$ |
3,241,695 |
|
|||||
Cost of revenue |
|
2,292,291 |
|
|
728,854 |
|
|
- |
|
|
- |
|
|
3,021,145 |
|
|||||
Gross profit |
|
164,663 |
|
|
55,315 |
|
|
572 |
|
|
- |
|
|
220,550 |
|
|||||
Equity in earnings of joint ventures |
|
2,859 |
|
|
400 |
|
|
4,230 |
|
|
- |
|
|
7,489 |
|
|||||
General and administrative expenses |
|
- |
|
|
- |
|
|
(3,006 |
) |
|
(29,760 |
) |
|
(32,766 |
) |
|||||
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
(12,264 |
) |
|
(12,264 |
) |
|||||
Income from operations |
$ |
167,522 |
|
$ |
55,715 |
|
$ |
1,796 |
|
$ |
(42,024 |
) |
$ |
183,009 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Gross profit as a % of revenue |
|
6.7 |
% |
|
7.1 |
% |
|
- |
|
|
- |
|
|
6.8 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
| Three Months Ended
|
|
|
|
|
|
|||||||||||||||
Revenue |
$ |
2,618,393 |
|
$ |
789,338 |
|
$ |
626 |
|
$ |
- |
|
$ |
3,408,357 |
|
|||||
Cost of revenue |
|
2,457,818 |
|
|
749,005 |
|
|
- |
|
|
- |
|
|
3,206,823 |
|
|||||
Gross profit |
|
160,575 |
|
|
40,333 |
|
|
626 |
|
|
- |
|
|
201,534 |
|
|||||
Equity in earnings of joint ventures |
|
3,239 |
|
|
5,137 |
|
|
(106 |
) |
|
- |
|
|
8,270 |
|
|||||
General and administrative expenses |
|
- |
|
|
- |
|
|
(2,409 |
) |
|
(33,931 |
) |
|
(36,340 |
) |
|||||
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
(12,971 |
) |
|
(12,971 |
) |
|||||
Income (loss) from operations |
$ |
163,814 |
|
$ |
45,470 |
|
$ |
(1,889 |
) |
$ |
(46,902 |
) |
$ |
160,493 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Gross profit as a % of revenue |
|
6.1 |
% |
|
5.1 |
% |
|
- |
|
|
- |
|
|
5.9 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
| Nine Months Ended
|
|
|
|
|
|
|||||||||||||||
Revenue |
$ |
7,320,369 |
|
$ |
2,399,901 |
|
$ |
1,799 |
|
$ |
- |
|
$ |
9,722,069 |
|
|||||
Cost of revenue |
|
6,845,292 |
|
|
2,246,071 |
|
|
- |
|
|
- |
|
|
9,091,363 |
|
|||||
Gross profit |
|
475,077 |
|
|
153,830 |
|
|
1,799 |
|
|
- |
|
|
630,706 |
|
|||||
Equity in earnings of joint ventures |
|
9,224 |
|
|
9,728 |
|
|
8,406 |
|
|
- |
|
|
27,358 |
|
|||||
General and administrative expenses |
|
- |
|
|
- |
|
|
(8,644 |
) |
|
(97,721 |
) |
|
(106,365 |
) |
|||||
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
(88,927 |
) |
|
(88,927 |
) |
|||||
Income from operations |
$ |
484,301 |
|
$ |
163,558 |
|
$ |
1,561 |
|
$ |
(186,648 |
) |
$ |
462,772 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Gross profit as a % of revenue |
|
6.5 |
% |
|
6.4 |
% |
|
- |
|
|
- |
|
|
6.5 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
Contracted backlog |
$ |
17,902,802 |
|
$ |
4,110,497 |
|
$ |
- |
|
$ |
- |
|
$ |
22,013,299 |
|
|||||
Awarded backlog |
|
17,553,997 |
|
|
1,286,094 |
|
|
- |
|
|
- |
|
|
18,840,091 |
|
|||||
Unconsolidated JV backlog |
|
276,829 |
|
|
- |
|
|
- |
|
|
- |
|
|
276,829 |
|
|||||
Total backlog |
$ |
35,733,628 |
|
$ |
5,396,591 |
|
$ |
- |
|
$ |
- |
|
$ |
41,130,219 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
| Nine Months Ended
|
|
|
|
|
|
|||||||||||||||
Revenue |
$ |
7,644,054 |
|
$ |
2,341,391 |
|
$ |
1,640 |
|
$ |
- |
|
$ |
9,987,085 |
|
|||||
Cost of revenue |
|
7,186,772 |
|
|
2,219,150 |
|
|
- |
|
|
- |
|
|
9,405,922 |
|
|||||
Gross profit |
|
457,282 |
|
|
122,241 |
|
|
1,640 |
|
|
- |
|
|
581,163 |
|
|||||
Equity in earnings of joint ventures |
|
7,624 |
|
|
11,148 |
|
|
4,856 |
|
|
- |
|
|
23,628 |
|
|||||
General and administrative expenses |
|
- |
|
|
- |
|
|
(5,770 |
) |
|
(104,937 |
) |
|
(110,707 |
) |
|||||
Restructuring costs |
|
- |
|
|
- |
|
|
- |
|
|
(34,755 |
) |
|
(34,755 |
) |
|||||
Income from operations |
$ |
464,906 |
|
$ |
133,389 |
|
$ |
726 |
|
$ |
(139,692 |
) |
$ |
459,329 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Gross profit as a % of revenue |
|
6.0 |
% |
|
5.2 |
% |
|
- |
|
|
- |
|
|
5.8 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
Contracted backlog |
$ |
15,072,850 |
|
$ |
4,011,633 |
|
$ |
- |
|
$ |
- |
|
$ |
19,084,483 |
|
|||||
Awarded backlog |
|
19,291,834 |
|
|
995,155 |
|
|
- |
|
|
- |
|
|
20,286,989 |
|
|||||
Unconsolidated JV backlog |
|
315,116 |
|
|
- |
|
|
- |
|
|
- |
|
|
315,116 |
|
|||||
Total backlog |
$ |
34,679,800 |
|
$ |
5,006,788 |
|
$ |
- |
|
$ |
- |
|
$ |
39,686,588 |
|
|||||
Regulation G Information (in millions) Reconciliation of Revenue to Net Service Revenue (NSR) |
|||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Revenue |
$ |
2,618.5 |
|
$ |
2,399.9 |
|
$ |
2,457.0 |
|
$ |
7,644.1 |
|
$ |
7,320.4 |
|
Less: Pass-through revenue |
|
1,728.0 |
|
|
1,450.4 |
|
|
1,530.7 |
|
|
4,967.0 |
|
|
4,556.8 |
|
Net service revenue |
$ |
890.5 |
|
$ |
949.5 |
|
$ |
926.3 |
|
$ |
2,677.1 |
|
$ |
2,763.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||
International |
|
|
|
|
|
|
|
|
|
||||||
Revenue |
$ |
789.3 |
|
$ |
813.3 |
|
$ |
784.2 |
|
$ |
2,341.4 |
|
$ |
2,399.9 |
|
Less: Pass-through revenue |
|
156.4 |
|
|
149.2 |
|
|
146.4 |
|
|
450.8 |
|
|
443.7 |
|
Net service revenue |
$ |
632.9 |
|
$ |
664.1 |
|
$ |
637.8 |
|
$ |
1,890.6 |
|
$ |
1,956.2 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Segment Performance (excludes ACAP) |
|
|
|
|
|
|
|
|
|
||||||
Revenue |
$ |
3,407.8 |
|
$ |
3,213.2 |
|
$ |
3,241.2 |
|
$ |
9,985.5 |
|
$ |
9,720.3 |
|
Less: Pass-through revenue |
|
1,884.4 |
|
|
1,599.6 |
|
|
1,677.1 |
|
|
5,417.8 |
|
|
5,000.5 |
|
Net service revenue |
$ |
1,523.4 |
|
$ |
1,613.6 |
|
$ |
1,564.1 |
|
$ |
4,567.7 |
|
$ |
4,719.8 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated |
|
|
|
|
|
|
|
|
|
||||||
Revenue |
$ |
3,408.4 |
|
$ |
3,213.7 |
|
$ |
3,241.7 |
|
$ |
9,987.1 |
|
$ |
9,722.1 |
|
Less: Pass-through revenue |
|
1,884.4 |
|
|
1,599.6 |
|
|
1,677.1 |
|
|
5,417.8 |
|
|
5,000.5 |
|
Net service revenue |
$ |
1,524.0 |
|
$ |
1,614.1 |
|
$ |
1,564.6 |
|
$ |
4,569.3 |
|
$ |
4,721.6 |
|
|
|
|
|
|
|
||||||||||
Reconciliation of Total Debt to Net Debt |
|||||||||
Balances at: |
|||||||||
|
|
|
|
||||||
Short-term debt |
$ |
2.9 |
$ |
3.4 |
$ |
2.3 |
|||
Current portion of long-term debt |
|
52.4 |
|
39.4 |
|
42.3 |
|||
Long-term debt, excluding unamortized debt issuance costs |
|
2,178.6 |
|
2,188.1 |
|
2,182.8 |
|||
Total debt |
|
2,233.9 |
|
2,230.9 |
|
2,227.4 |
|||
Less: Total cash and cash equivalents |
|
1,049.0 |
|
965.1 |
|
1,010.7 |
|||
Net debt |
$ |
1,184.9 |
$ |
1,265.8 |
$ |
1,216.7 |
|||
|
|
|
|
||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Net cash provided by (used in) operating activities |
$ |
320.3 |
|
$ |
(1.7 |
) |
$ |
204.9 |
|
$ |
386.6 |
|
$ |
398.1 |
|
|||||
Capital expenditures, net |
|
(25.1 |
) |
|
(15.7 |
) |
|
(22.0 |
) |
|
(102.3 |
) |
|
(69.9 |
) |
|||||
Free cash flow |
$ |
295.2 |
|
$ |
(17.4 |
) |
$ |
182.9 |
|
$ |
284.3 |
|
$ |
328.2 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Regulation G Information (in millions, except per share data) |
||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Reconciliation of Income from Operations to Adjusted Income from Operations |
||||||||||||||||||||
Income from operations |
$ |
160.5 |
|
|
$ |
111.5 |
|
|
$ |
183.0 |
|
|
$ |
459.3 |
|
|
$ |
462.8 |
|
|
Restructuring costs |
|
13.0 |
|
|
|
73.3 |
|
|
|
12.3 |
|
|
|
34.8 |
|
|
|
89.0 |
|
|
Amortization of intangible assets |
|
5.2 |
|
|
|
4.8 |
|
|
|
4.7 |
|
|
|
15.9 |
|
|
|
14.2 |
|
|
Adjusted income from operations |
$ |
178.7 |
|
|
$ |
189.6 |
|
|
$ |
200.0 |
|
|
$ |
510.0 |
|
|
$ |
566.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Income from Continuing Operations Before Taxes to Adjusted Income from Continuing Operations Before Taxes |
||||||||||||||||||||
Income from continuing operations before taxes |
$ |
16.0 |
|
|
$ |
90.6 |
|
|
$ |
159.9 |
|
|
$ |
258.7 |
|
|
$ |
396.3 |
|
|
Restructuring costs |
|
13.0 |
|
|
|
73.3 |
|
|
|
12.3 |
|
|
|
34.8 |
|
|
|
89.0 |
|
|
Amortization of intangible assets |
|
5.2 |
|
|
|
4.8 |
|
|
|
4.7 |
|
|
|
15.9 |
|
|
|
14.2 |
|
|
Prepayment premium on debt |
|
117.5 |
|
|
|
- |
|
|
|
- |
|
|
|
117.5 |
|
|
|
- |
|
|
Financing charges in interest expense |
|
5.7 |
|
|
|
1.2 |
|
|
|
1.2 |
|
|
|
10.1 |
|
|
|
3.6 |
|
|
Adjusted income from continuing operations before taxes |
$ |
157.4 |
|
|
$ |
169.9 |
|
|
$ |
178.1 |
|
|
$ |
437.0 |
|
|
$ |
503.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Income Taxes for Continuing Operations to Adjusted Income Taxes for Continuing Operations |
||||||||||||||||||||
Income tax (benefit) expense for continuing operations |
$ |
(17.8 |
) |
|
$ |
36.0 |
|
|
$ |
44.5 |
|
|
$ |
42.9 |
|
|
$ |
103.1 |
|
|
Tax effect of the above adjustments* |
|
34.5 |
|
|
|
11.1 |
|
|
|
4.6 |
|
|
|
44.6 |
|
|
|
18.0 |
|
|
Valuation allowances and other tax only items |
|
26.5 |
|
|
|
(1.5 |
) |
|
|
(1.6 |
) |
|
|
29.3 |
|
|
|
(7.3 |
) |
|
Adjusted income tax expense for continuing operations |
$ |
43.2 |
|
|
$ |
45.6 |
|
|
$ |
47.5 |
|
|
$ |
116.8 |
|
|
$ |
113.8 |
|
|
* Adjusts income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Net Income Attributable to Noncontrolling Interests from Continuing Operations to Adjusted Net Income Attributable to Noncontrolling Interests from Continuing Operations |
||||||||||||||||||||
Net income attributable to noncontrolling interests from continuing operations |
$ |
(5.9 |
) |
|
$ |
(5.6 |
) |
|
$ |
(8.5 |
) |
|
$ |
(16.2 |
) |
|
$ |
(19.5 |
) |
|
Amortization of intangible assets included in NCI, net of tax |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
Adjusted net income attributable to noncontrolling interests from continuing operations |
$ |
(6.0 |
) |
|
$ |
(5.8 |
) |
|
$ |
(8.6 |
) |
|
$ |
(16.6 |
) |
|
$ |
(19.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of Net Income Attributable to |
||||||||||||||||||||
Net income attributable to |
$ |
27.9 |
|
|
$ |
49.0 |
|
|
$ |
106.9 |
|
|
$ |
199.6 |
|
|
$ |
273.7 |
|
|
Restructuring costs |
|
13.0 |
|
|
|
73.3 |
|
|
|
12.3 |
|
|
|
34.8 |
|
|
|
89.0 |
|
|
Amortization of intangible assets |
|
5.2 |
|
|
|
4.8 |
|
|
|
4.7 |
|
|
|
15.9 |
|
|
|
14.2 |
|
|
Prepayment premium on debt |
|
117.5 |
|
|
|
- |
|
|
|
- |
|
|
|
117.5 |
|
|
|
- |
|
|
Financing charges in interest expense |
|
5.7 |
|
|
|
1.2 |
|
|
|
1.2 |
|
|
|
10.1 |
|
|
|
3.6 |
|
|
Tax effect of the above adjustments* |
|
(34.5 |
) |
|
|
(11.1 |
) |
|
|
(4.6 |
) |
|
|
(44.6 |
) |
|
|
(18.0 |
) |
|
Valuation allowances and other tax only items |
|
(26.5 |
) |
|
|
1.5 |
|
|
|
1.6 |
|
|
|
(29.3 |
) |
|
|
7.3 |
|
|
Amortization of intangible assets included in NCI, net of tax |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
Adjusted net income attributable to |
$ |
108.2 |
|
|
$ |
118.5 |
|
|
$ |
122.0 |
|
|
$ |
303.6 |
|
|
$ |
369.4 |
|
|
* Adjusts income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
||||||||||||||||||||
Regulation G Information (in millions, except per share data) |
||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Reconciliation of Net Income Attributable to |
||||||||||||||||||||
Net income attributable to |
$ |
0.19 |
|
$ |
0.34 |
|
$ |
0.75 |
|
$ |
1.32 |
|
$ |
1.91 |
|
|||||
Per diluted share adjustments: |
|
|
|
|
|
|||||||||||||||
Restructuring costs |
|
0.09 |
|
|
0.51 |
|
|
0.09 |
|
|
0.23 |
|
|
0.62 |
|
|||||
Amortization of intangible assets |
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.11 |
|
|
0.10 |
|
|||||
Prepayment premium on debt |
|
0.79 |
|
|
- |
|
|
- |
|
|
0.78 |
|
|
- |
|
|||||
Financing charges in interest expense |
|
0.04 |
|
|
0.01 |
|
|
0.01 |
|
|
0.07 |
|
|
0.03 |
|
|||||
Tax effect of the above adjustments* |
|
(0.23 |
) |
|
(0.07 |
) |
|
(0.03 |
) |
|
(0.31 |
) |
|
(0.13 |
) |
|||||
Valuation allowances and other tax only items |
|
(0.18 |
) |
|
0.01 |
|
|
0.01 |
|
|
(0.19 |
) |
|
0.05 |
|
|||||
Adjusted net income attributable to |
$ |
0.73 |
|
$ |
0.83 |
|
$ |
0.86 |
|
$ |
2.01 |
|
$ |
2.58 |
|
|||||
Weighted average shares outstanding – basic |
|
146.1 |
|
|
141.1 |
|
|
140.6 |
|
|
148.4 |
|
|
141.1 |
|
|||||
Weighted average shares outstanding – diluted |
|
148.9 |
|
|
142.6 |
|
|
142.2 |
|
|
150.7 |
|
|
143.1 |
|
|||||
* Adjusts income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above.
|
||||||||||||||||||||
|
||||||||||||||||||||
Reconciliation of Net Income Attributable to |
||||||||||||||||||||
Net income attributable to |
$ |
27.9 |
|
$ |
49.0 |
|
$ |
106.9 |
|
$ |
199.6 |
|
$ |
273.7 |
|
|||||
Income tax (benefit) expense |
|
(17.8 |
) |
|
36.0 |
|
|
44.5 |
|
|
42.9 |
|
|
103.1 |
|
|||||
Depreciation and amortization |
|
49.5 |
|
|
43.7 |
|
|
41.3 |
|
|
130.0 |
|
|
126.1 |
|
|||||
Interest income2 |
|
(2.2 |
) |
|
(1.8 |
) |
|
(2.8 |
) |
|
(4.7 |
) |
|
(5.9 |
) |
|||||
Interest expense |
|
149.0 |
|
|
24.2 |
|
|
27.4 |
|
|
212.5 |
|
|
77.0 |
|
|||||
Amortized bank fees included in interest expense |
|
(5.8 |
) |
|
(1.2 |
) |
|
(1.2 |
) |
|
(10.2 |
) |
|
(3.6 |
) |
|||||
EBITDA |
$ |
200.6 |
|
$ |
149.9 |
|
$ |
216.1 |
|
$ |
570.1 |
|
$ |
570.4 |
|
|||||
Restructuring costs |
|
13.0 |
|
|
73.3 |
|
|
12.3 |
|
|
34.8 |
|
|
89.0 |
|
|||||
Adjusted EBITDA |
$ |
213.6 |
|
$ |
223.2 |
|
$ |
228.4 |
|
$ |
604.9 |
|
$ |
659.4 |
|
|||||
Other income |
|
(4.5 |
) |
|
(3.3 |
) |
|
(4.3 |
) |
|
(11.8 |
) |
|
(10.5 |
) |
|||||
Depreciation1 |
|
(38.6 |
) |
|
(37.8 |
) |
|
(35.5 |
) |
|
(104.3 |
) |
|
(108.6 |
) |
|||||
Interest income2 |
|
2.2 |
|
|
1.8 |
|
|
2.8 |
|
|
4.7 |
|
|
5.9 |
|
|||||
Noncontrolling interests in income of consolidated subsidiaries, net of tax |
|
5.9 |
|
|
5.6 |
|
|
8.5 |
|
|
16.1 |
|
|
19.5 |
|
|||||
Amortization of intangible assets included in NCI, net of tax |
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
0.4 |
|
|
0.3 |
|
|||||
Adjusted income from operations |
$ |
178.7 |
|
$ |
189.6 |
|
$ |
200.0 |
|
$ |
510.0 |
|
$ |
566.0 |
|
|||||
1 Excludes depreciation from discontinued operations
|
||||||||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Reconciliation of Segment Income from Operations to Adjusted Income from Operations |
|||||||||||||||
Americas Segment: |
|
|
|
|
|
||||||||||
Income from operations |
$ |
163.8 |
|
$ |
163.6 |
|
$ |
167.5 |
|
$ |
464.9 |
|
$ |
484.3 |
|
Amortization of intangible assets |
|
4.3 |
|
|
4.4 |
|
|
4.3 |
|
|
13.0 |
|
|
13.0 |
|
Adjusted income from operations |
$ |
168.1 |
|
$ |
168.0 |
|
$ |
171.8 |
|
$ |
477.9 |
|
$ |
497.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||
International Segment: |
|
|
|
|
|
|
|
|
|
||||||
Income from operations |
$ |
45.5 |
|
$ |
54.8 |
|
$ |
55.8 |
|
$ |
133.4 |
|
$ |
163.6 |
|
Amortization of intangible assets |
|
0.9 |
|
|
0.4 |
|
|
0.3 |
|
|
2.9 |
|
|
1.1 |
|
Adjusted income from operations |
$ |
46.4 |
|
$ |
55.2 |
|
$ |
56.1 |
|
$ |
136.3 |
|
$ |
164.7 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Segment Performance (excludes ACAP and G&A): |
|
|
|
|
|
|
|
|
|
||||||
Income from operations |
$ |
209.3 |
|
$ |
218.4 |
|
$ |
223.3 |
|
$ |
598.3 |
|
$ |
647.9 |
|
Amortization of intangible assets |
|
5.2 |
|
|
4.8 |
|
|
4.6 |
|
|
15.9 |
|
|
14.1 |
|
Adjusted income from operations |
$ |
214.5 |
|
$ |
223.2 |
|
$ |
227.9 |
|
$ |
614.2 |
|
$ |
662.0 |
|
|
|
|
|
|
|
||||||||||
FY2022 GAAP EPS Guidance based on Adjusted EPS Guidance |
||
(all figures approximate) |
Fiscal Year End 2022 |
|
GAAP EPS Guidance |
|
|
Adjusted EPS excludes: |
|
|
Amortization of intangible assets |
|
|
Amortization of deferred financing fees |
|
|
Restructuring expenses‡ |
|
|
Tax effect of the above items |
( |
|
Adjusted EPS Guidance |
|
|
FY2022 GAAP Net Income Attributable to |
||
(in millions, all figures approximate) |
Fiscal Year End 2022 |
|
GAAP net income attributable to |
|
|
Adjusted net income attributable to |
|
|
Amortization of intangible assets |
|
|
Amortization of deferred financing fees |
|
|
Restructuring expenses‡ |
|
|
Tax effect of the above items |
( |
|
Adjusted net income attributable to |
|
|
Adjusted EBITDA excludes: |
|
|
Depreciation |
|
|
Adjusted interest expense, net |
|
|
Tax expense, including tax effect of above items |
|
|
Adjusted EBITDA Guidance |
|
|
* Calculated based on the mid-point of AECOM’s fiscal year 2022 EPS guidance
‡ Includes a reiterated expectation for |
||
Regulation G Information |
||
FY2022 GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance |
||
(in millions, all figures approximate) |
Fiscal Year End 2022 |
|
GAAP Interest Expense Guidance |
|
|
Finance charges in interest expense |
( |
|
Interest income |
( |
|
Adjusted Net Interest Expense Guidance |
|
|
FY2022 GAAP Income Tax Guidance based on Adjusted Income Tax Guidance |
||
(in millions, all figures approximate) |
Fiscal Year End 2022 |
|
GAAP income tax expense |
|
|
Tax effect of adjusting items |
|
|
Adjusted Income Tax Expense Guidance |
|
|
FY2022 GAAP Operating Cash Flow Guidance based on Free Cash Flow Guidance |
||
(in millions, all figures approximate) |
Fiscal Year End 2022 |
|
Operating cash flow guidance |
|
|
Capital expenditures, net of proceeds from equipment disposals |
( |
|
Free Cash Flow Guidance |
|
|
|
||
FY2022 GAAP Income from Operations as a % of Revenue Guidance based on Segment Adjusted Operating Income as a % of Net Service Revenue Guidance |
||
(all figures approximate) |
Fiscal Year End 2022 |
|
Income from operations as a % of revenue |
|
|
Pass-through revenues |
|
|
Amortization of intangible assets |
|
|
|
(0.1)% |
|
Corporate net expense |
|
|
Restructuring expenses |
|
|
Segment adjusted operating income as a % of net service revenue |
|
|
Note: Variances in tables are due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005190/en/
Investor Contact:
Senior Vice President, Finance, Treasurer
213.593.8208
William.Gabrielski@aecom.com
Media Contact:
Senior Vice President,
213.996.2367
Brendan.Ranson-Walsh@aecom.com
Source:
FAQ
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