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UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION
13 OR 15(d) OF THE
SECURITIES EXCHANGE
ACT OF 1934
Date of Report (Date of earliest event reported):
August 5, 2024
AECOM
(Exact name of Registrant as specified in its charter)
| Delaware |
|
0-52423 |
|
61-1088522 |
| (State or Other Jurisdiction |
|
(Commission |
|
(I.R.S. Employer |
| of Incorporation) |
|
File Number) |
|
Identification No.) |
| 13355 Noel Road |
|
|
| Dallas, Texas
75240 |
|
75240 |
(Address of Principal
Executive Offices) |
|
(Zip
Code) |
Registrant’s telephone number, including
area code: (972) 788-1000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions ( see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-(b) under the Exchange
Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
Securities registered
pursuant to Section 12(b) of the Act:
| Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
| Common Stock, $0.01 par value |
|
ACM |
|
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
Growth Company ¨
If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with
any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨
| Item 2.02 |
Results of Operations and Financial Condition. |
On
August 5, 2024, AECOM issued a press release announcing its financial results for the quarter ended June 30, 2024. A
copy of the press release is attached to this report as Exhibit 99.1. Exhibit 99.1 attached hereto shall not be deemed “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended.
AECOM reports its results of operations based on 52 or 53-week periods
ending on the Friday nearest September 30, December 31, March 31, and June 30. For clarity of presentation, all periods
are presented as if the periods ended on September 30, December 31, March 31, and June 30.
| Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.
| | AECOM |
| | | |
| Dated: August 5, 2024 | By: | /s/ David Y. Gan |
| | | David Y. Gan |
| | | Executive Vice President, Chief Legal Officer |
Exhibit
99.1
|
|
|
Press
Release
|
Investor
Contact:
Will Gabrielski
Senior Vice President, Finance, Treasurer
213.593.8208
William.Gabrielski@aecom.com |
Media
Contact:
Brendan Ranson-Walsh
Senior Vice President, Global Communications
213.996.2367
Brendan.Ranson-Walsh@aecom.com |
AECOM
reports third quarter fiscal 2024 results
| · | Increased
earnings guidance for fiscal 2024 |
| · | Delivered
record third quarter performance |
| · | Backlog
remains near an all-time high, and total pipeline is at a record level |
| · | Returned
$407 million to shareholders fiscal year-to-date, including $150 million of share repurchases
since the end of the fiscal third quarter |
DALLAS
(August 5, 2024) — AECOM (NYSE:ACM), the world’s trusted infrastructure consulting firm, today reported third quarter
fiscal 2024 results.
| |
|
Third
Quarter Fiscal 2024 |
|
Year-to-Date
Fiscal 2024 |
(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 |
|
$4,151 |
|
-- |
|
|
13% |
|
|
-- |
|
$11,995 |
|
-- |
|
|
14% |
|
|
-- |
| Net Service Revenue
(NSR)2 |
|
-- |
|
$1,826 |
|
|
-- |
|
|
8% |
|
-- |
|
$5,353 |
|
|
-- |
|
|
8% |
| Operating Income |
|
$227 |
|
$261 |
|
|
NM |
|
|
19% |
|
$591 |
|
$724 |
|
|
142% |
|
|
16% |
| Segment Operating
Margin3 |
|
-- |
|
16.3% |
|
|
-- |
|
|
+110
bps |
|
-- |
|
15.5% |
|
|
-- |
|
|
+90
bps |
| Net Income |
|
$129 |
|
$159 |
|
|
NM |
|
|
21% |
|
$338 |
|
$445 |
|
|
321% |
|
|
17% |
| EPS (Fully Diluted) |
|
$0.95 |
|
$1.16 |
|
|
NM |
|
|
23% |
|
$2.47 |
|
$3.25 |
|
|
333% |
|
|
20% |
| EBITDA4 |
|
-- |
|
$286 |
|
|
-- |
|
|
16% |
|
-- |
|
$805 |
|
|
-- |
|
|
13% |
| EBITDA Margin5 |
|
-- |
|
16.5% |
|
|
-- |
|
|
+130
bps |
|
-- |
|
15.8% |
|
|
-- |
|
|
+90 bps |
| Operating Cash
Flow |
|
$291 |
|
-- |
|
|
4% |
|
|
-- |
|
-- |
|
$529 |
|
|
-- |
|
|
29% |
| Free Cash Flow6 |
|
-- |
|
$273 |
|
|
-- |
|
|
3% |
|
-- |
|
$434 |
|
|
-- |
|
|
32% |
| Total Backlog |
|
$23,362 |
|
-- |
|
|
1%7 |
|
|
-- |
|
|
|
|
|
|
|
|
|
|
Third
Quarter Fiscal 2024 Highlights:
| · | Reflecting
as reported performance from continuing operations, revenue increased 13% to $4.2 billion,
operating income increased to $227 million, net income increased to $129 million, and diluted earnings
per share increased to $0.95. |
| · | Net
service revenue2 increased by 8% to a record high, driven by growth across all of the
Company’s largest end markets and the benefits from continued addressable market expansion. |
| · | The
adjusted EBITDA margin5 increased by 130 basis points to 16.5% and the segment
adjusted1 operating margin3 increased by 110 basis points to 16.3%,
both of which set quarterly records, reflecting strong execution and the high return on the
Company’s organic growth investments. |
| ‒ | The
Company is investing in growth while delivering record quarterly margins. |
| · | Adjusted1
EBITDA4 increased by 16% and adjusted1 EPS increased by 23%. |
| · | Total
backlog increased and is near an all-time high. |
| ‒ | The
book-to-burn ratio8 in the higher margin Americas segment was 1.1. |
| ‒ | The
Company’s win rate across the enterprise remains at a record high. |
| ‒ | The
pipeline of opportunities reached another new high, and the pipeline of larger $25+ million
pursuits with decisions expected in fiscal 2025 is approximately 70% higher compared to this
time last year. |
| ‒ | Long-term
demand and funding for investments in global infrastructure, sustainability and resilience,
and the energy transition, combined with the Company’s focus on expanding its addressable
market and gaining market share, support its long-term annual 5 - 8% net service revenue
growth target. |
Fiscal
2024 Financial Guidance
| · | The
Company increased its earnings guidance for fiscal 2024, including its expectation to deliver
adjusted1 EBITDA4 of between $1,075 million and $1,105 million and
adjusted1 EPS of between $4.45 and $4.55, reflecting 13% and 21% year-over-year
growth, respectively. |
| · | The
Company’s fiscal 2024 guidance also includes expectations for: |
| – | Organic
NSR2 growth at the lower end of the 8% to 10% range. |
| – | A
segment adjusted1 operating income margin3 of approximately 15.6%,
representing a 90 basis point increase from fiscal 2023. |
| – | 100%+
free cash flow6 conversion, reflecting the highly cash generative nature of the
Company’s Professional Services business. |
| – | An
average fully diluted share count of 136 million, which reflects only shares repurchased
to-date, though the Company intends to continue repurchasing stock that would provide a benefit
to per share earnings. |
| – | An
adjusted effective tax rate of approximately 25% for the full year. |
| – | Return
on invested capital9 (ROIC) of approximately 20%. |
| · | See
the Regulation G Information tables at the end of this release for a reconciliation of non-GAAP
measures to the most directly comparable GAAP measures. |
Cash
Flow, Balance Sheet and Capital Allocation Update
| · | Third
quarter operating cash flow of $291 million and free cash flow6 of $273 million,
contributed to year-to-date free cash flow6 of $434 million, an increase of 32%
over the prior year period. |
| · | The
Company’s returns-focused capital allocation policy prioritizes investments in organic
growth followed by share repurchases and dividends. |
| – | Inclusive
of $150 million of share repurchases since the end of the fiscal third quarter and the Company’s
July dividend payment, the Company has returned $407 million to shareholders this year. |
| – | The
Company has more than $700 million remaining under the current share repurchase authorization. |
“Our
third quarter performance was highlighted by record revenue and margins, strong cash flow growth, and we increased our earnings guidance
for a second time this year, which reflects our competitive advantages,” said Troy Rudd, AECOM’s chief executive officer.
“We have built a record pipeline, trends across our markets are strong, and we are energized by the opportunities ahead. As the
number one ranked water, environmental engineering, transportation and facilities design firm by ENR, along with our most recent rise
to number two in Program Management, the leadership position we’ve built in each of our market sectors is unrivaled. We remain
confident in delivering on our near- and long-term financial commitments and will continue to deploy capital to share repurchases to
fully realize the value creation opportunity.”
“With
record levels of investment across nearly every market in which we operate, clients are turning to AECOM now more than ever to help deliver
the largest and most complex projects and programs in the world,” said Lara Poloni, AECOM’s president. “We are increasingly
capitalizing on opportunities to expand our addressable market and lead with high-value advisory and consulting services that complement
our industry-leading technical expertise. The investments we are making in our technical academies and in leadership development programs
are fortifying and expanding this advantage as the employer of choice in our industry.”
“Through
our consistent execution, double-digit earnings growth and strong cash flow, we are delivering on the key elements of shareholder value
creation,” said Gaurav Kapoor, AECOM’s chief financial and operations officer. “We are executing on our returns-focused
capital allocation policy, which is led by share repurchases after investments in high-returning organic growth opportunities. We will
not hesitate to continue deploying capital in this manner to maximize shareholder value.”
Business
Segments
Americas
Revenue
in the third quarter was $3.2 billion. Net service revenue2 was $1.1 billion, an 8% increase from the prior year.
Operating
income increased by 11% over the prior year to $207 million. On an adjusted1 basis, operating income increased by 11% to $212
million. The adjusted operating margin on net service revenue increased by 50 basis points to 19.3%. The Company’s profitability
reflects the strong returns on investments in business development, leadership development and technical training, as well as productivity
enhancing investments in digital initiatives.
International
Revenue
in the third quarter was $904 million. Net service revenue2 was $729 million, a 7% increase from the prior year.
Operating
income and adjusted1 operating income both increased by 25% to $85 million. The adjusted operating margin on net service revenue
increased by 180 basis points over the prior year to 11.7%, which marked a new quarterly high for the International segment. This result
reflects the benefits of the Company’s focus on its highest-returning end markets.
Balance
Sheet
As
of June 30, 2024, AECOM had $1.6 billion of total cash and cash equivalents, $2.5 billion of total debt and $897 million of net
debt (total debt less cash and cash equivalents). Net leverage10 was 0.8x.
Tax
Rate
The
effective tax rate was 23.9% in the third quarter. On an adjusted1 basis, the effective tax rate was 26.9%. The adjusted tax
rate was derived by re-computing the quarterly effective tax rate on adjusted net income11. 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.
Conference
Call
AECOM
is hosting a conference call tomorrow at 8 a.m. Eastern Time, during which management will make a brief presentation focusing on
the Company's results, strategy and operating trends, and outlook. 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 certain items, such as restructuring costs, amortization of intangible assets, non-core AECOM Capital 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 AECOM Capital and G&A, and margins are presented on a net service revenue
basis.
4
Net income before interest expense, tax expense, depreciation and amortization.
5
Adjusted EBITDA margin includes non-controlling interests in EBITDA and is on a net service revenue basis.
6
Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from disposals of property and
equipment; free cash flow conversion is defined as free cash flow divided by adjusted net income attributable to AECOM.
7
Backlog represents the total value of work for which AECOM has been selected that is expected to be completed by consolidated subsidiaries
and includes the proportionate share of work expected to be performed by unconsolidated joint ventures. Backlog in the construction management
business is included on a net service revenue basis. Growth rates are presented 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
Return on invested capital, or ROIC, reflects continuing operations and is calculated as the sum of adjusted net income as presented
in the Company’s Regulation G Information and adjusted 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.
10
Net leverage is comprised of EBITDA as defined in the Company’s credit agreement dated October 17, 2014, as amended,
and total debt on the Company’s financial statements, net of total cash and cash equivalents.
11
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 trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle
– from advisory, planning, design and engineering to program and construction management. On projects spanning transportation,
buildings, water, new 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 and digital expertise, 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 $14.4 billion in fiscal year 2023. See how we are delivering sustainable legacies for
generations to come at aecom.com and @AECOM.
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, capital allocation strategy including stock repurchases, 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; potential government
shutdowns or other funding circumstances that may cause governmental agencies to modify, curtail or terminate our contracts; losses under
fixed-price contracts; limited control over operations that 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;
potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political
and economic risks in different countries, including tariffs, geopolitical events, and conflicts; currency exchange rate and interest
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; managing pension costs; AECOM Capital real estate development projects; cybersecurity
issues, IT outages and data privacy; risks associated with the benefits and costs of the sale of our Management Services and self-perform
at-risk civil infrastructure, power construction and oil and gas businesses, including the risk that any purchase adjustments from those
transactions could be unfavorable and result in any future proceeds owed to us as part of the transactions could be lower than we expect;
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, segment adjusted
operating margin, 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 operating income, adjusted net income,
adjusted EBITDA and adjusted EPS to exclude the impact of certain items, such as amortization expense and taxes to aid investors in better
understanding our core performance results. We use free cash flow to present the cash generated from operations after capital expenditures
to maintain our business. We present net service revenue (NSR) to exclude pass-through 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. We present adjusted tax rate to reflect
the tax rate on adjusted earnings. We also use constant-currency growth rates where appropriate, which are calculated by conforming
the current period results to the comparable period exchange rates.
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 certain
of 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. The Company is unable to provide a reconciliation of its guidance for NSR to GAAP revenue because it
is unable to predict with reasonable certainty its pass-through revenue.
AECOM
Consolidated
Statements of Income
(unaudited
- in thousands, except per share data)
| | |
Three Months
Ended | |
|
Nine Months
Ended | |
| | |
June 30,
2023 | |
|
June 30,
2024 | |
|
%
Change | |
|
June 30,
2023 | |
|
June 30,
2024 | |
|
%
Change | |
| Revenue | |
$ | 3,663,549 | |
|
$ | 4,151,251 | |
|
| 13.3 | % |
|
$ | 10,536,076 | |
|
$ | 11,995,004 | |
|
| 13.8 | % |
| Cost of revenue | |
| 3,413,471 | |
|
| 3,866,207 | |
|
| 13.3 | % |
|
| 9,842,916 | |
|
| 11,204,816 | |
|
| 13.8 | % |
| Gross
profit | |
| 250,078 | |
|
| 285,044 | |
|
| 14.0 | % |
|
| 693,160 | |
|
| 790,188 | |
|
| 14.0 | % |
| Equity in (losses) earnings
of joint ventures | |
| (303,503 | ) |
|
| 7,647 | |
|
| (102.5 | )% |
|
| (286,218 | ) |
|
| (1,835 | ) |
|
| (99.4 | )% |
| General and administrative expenses | |
| (42,883 | ) |
|
| (36,209 | ) |
|
| (15.6 | )% |
|
| (112,642 | ) |
|
| (116,619 | ) |
|
| 3.5 | % |
| Restructuring costs | |
| (9,115 | ) |
|
| (29,025 | ) |
|
| 218.4 | % |
|
| (50,547 | ) |
|
| (80,670 | ) |
|
| 59.6 | % |
| (Loss)
income from operations | |
| (105,423 | ) |
|
| 227,457 | |
|
| (315.8 | )% |
|
| 243,753 | |
|
| 591,064 | |
|
| 142.5 | % |
| Other income | |
| 1,797 | |
|
| 963 | |
|
| (46.4 | )% |
|
| 6,282 | |
|
| 6,154 | |
|
| (2.0 | )% |
| Interest income | |
| 8,802 | |
|
| 15,817 | |
|
| 79.7 | % |
|
| 24,492 | |
|
| 43,341 | |
|
| 77.0 | % |
| Interest expense | |
| (38,868 | ) |
|
| (51,370 | ) |
|
| 32.2 | % |
|
| (117,940 | ) |
|
| (140,350 | ) |
|
| 19.0 | % |
| (Loss)
income from continuing operations before taxes | |
| (133,692 | ) |
|
| 192,867 | |
|
| (244.3 | )% |
|
| 156,587 | |
|
| 500,209 | |
|
| 219.4 | % |
| Income
tax (benefit) expense for continuing operations | |
| (20,000 | ) |
|
| 46,035 | |
|
| (330.2 | )% |
|
| 46,870 | |
|
| 118,078 | |
|
| 151.9 | % |
| (Loss) income from continuing
operations | |
| (113,692 | ) |
|
| 146,832 | |
|
| (229.1 | )% |
|
| 109,717 | |
|
| 382,131 | |
|
| 248.3 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| (Loss) income from discontinued
operations | |
| (7,607 | ) |
|
| 5,677 | |
|
| (174.6 | )% |
|
| (49,770 | ) |
|
| (104,998 | ) |
|
| 111.0 | % |
| Net (loss)
income | |
| (121,299 | ) |
|
| 152,509 | |
|
| (225.7 | )% |
|
| 59,947 | |
|
| 277,133 | |
|
| 362.3 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Net
income attributable to noncontrolling interests from continuing operations | |
| (11,829 | ) |
|
| (17,355 | ) |
|
| 46.7 | % |
|
| (29,562 | ) |
|
| (44,585 | ) |
|
| 50.8 | % |
| Net
income attributable to noncontrolling interests from discontinued operations | |
| (1,573 | ) |
|
| (881 | ) |
|
| (44.0 | )% |
|
| (526 | ) |
|
| (2,830 | ) |
|
| 438.0 | % |
| Net
income attributable to noncontrolling interests | |
| (13,402 | ) |
|
| (18,236 | ) |
|
| 36.1 | % |
|
| (30,088 | ) |
|
| (47,415 | ) |
|
| 57.6 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Net
(loss) income attributable to AECOM from continuing operations | |
| (125,521 | ) |
|
| 129,477 | |
|
| (203.2 | )% |
|
| 80,155 | |
|
| 337,546 | |
|
| 321.1 | % |
| Net
(loss) income attributable to AECOM from discontinued operations | |
| (9,180 | ) |
|
| 4,796 | |
|
| (152.2 | )% |
|
| (50,296 | ) |
|
| (107,828 | ) |
|
| 114.4 | % |
| Net (loss)
income attributable to AECOM | |
$ | (134,701 | ) |
|
$ | 134,273 | |
|
| (199.7 | )% |
|
$ | 29,859 | |
|
$ | 229,718 | |
|
| 669.3 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
Net
(loss) income attributable to AECOM
per share: | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Basic
continuing operations per share | |
$ | (0.90 | ) |
|
$ | 0.95 | |
|
| (205.6 | )% |
|
$ | 0.58 | |
|
$ | 2.48 | |
|
| 327.6 | % |
| Basic
discontinued operations per share | |
| (0.07 | ) |
|
| 0.04 | |
|
| (157.1 | )% |
|
| (0.36 | ) |
|
| (0.79 | ) |
|
| 119.4 | % |
| Basic
earnings per share | |
$ | (0.97 | ) |
|
$ | 0.99 | |
|
| (202.1 | )% |
|
$ | 0.22 | |
|
$ | 1.69 | |
|
| 668.2 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Diluted continuing operations
per share | |
$ | (0.90 | ) |
|
$ | 0.95 | |
|
| (205.6 | )% |
|
$ | 0.57 | |
|
$ | 2.47 | |
|
| 333.3 | % |
| Diluted discontinued operations
per share | |
| (0.07 | ) |
|
| 0.03 | |
|
| (142.9 | )% |
|
| (0.36 | ) |
|
| (0.79 | ) |
|
| 119.4 | % |
| Diluted
earnings per share | |
$ | (0.97 | ) |
|
$ | 0.98 | |
|
| (201.0 | )% |
|
$ | 0.21 | |
|
$ | 1.68 | |
|
| 700.0 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Weighted average shares outstanding: | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Basic | |
| 138,741 | |
|
| 136,025 | |
|
| (2.0 | )% |
|
| 138,785 | |
|
| 135,976 | |
|
| (2.0 | )% |
| Diluted | |
| 138,741 | |
|
| 136,790 | |
|
| (1.4 | )% |
|
| 140,339 | |
|
| 136,868 | |
|
| (2.5 | )% |
AECOM
Balance
Sheet Information
(unaudited
- in thousands)
| | |
September 30,
2023 | |
|
June 30,
2024 | |
| Balance Sheet Information: | |
| | |
|
| | |
| Total cash and cash equivalents | |
$ | 1,260,206 | |
|
$ | 1,644,812 | |
| Accounts receivable and contract assets, net | |
| 4,069,504 | |
|
| 4,545,176 | |
| Working capital | |
| 319,228 | |
|
| 829,020 | |
| Total debt, excluding unamortized debt issuance costs | |
| 2,217,255 | |
|
| 2,541,521 | |
| Total assets | |
| 11,233,398 | |
|
| 12,046,598 | |
| Total AECOM stockholders’ equity | |
| 2,212,332 | |
|
| 2,298,326 | |
AECOM
Reportable
Segments
(unaudited
- in thousands)
| | |
Americas | |
|
International | |
|
AECOM
Capital | |
|
Corporate | |
|
Total | |
Three
Months Ended June 30, 2024 | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Revenue | |
$ | 3,246,882 | |
|
$ | 904,206 | |
|
$ | 163 | |
|
$ | — | |
|
$ | 4,151,251 | |
| Cost of revenue | |
| 3,043,053 | |
|
| 823,154 | |
|
| — | |
|
| — | |
|
| 3,866,207 | |
| Gross profit | |
| 203,829 | |
|
| 81,052 | |
|
| 163 | |
|
| — | |
|
| 285,044 | |
| Equity in earnings of joint
ventures | |
| 3,478 | |
|
| 3,617 | |
|
| 552 | |
|
| — | |
|
| 7,647 | |
| General and administrative expenses | |
| — | |
|
| — | |
|
| (540 | ) |
|
| (35,669 | ) |
|
| (36,209 | ) |
| Restructuring costs | |
| — | |
|
| — | |
|
| — | |
|
| (29,025 | ) |
|
| (29,025 | ) |
| Income from operations | |
$ | 207,307 | |
|
$ | 84,669 | |
|
$ | 175 | |
|
$ | (64,694 | ) |
|
$ | 227,457 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Gross profit as a % of revenue | |
| 6.3 | % |
|
| 9.0 | % |
|
| — | |
|
| — | |
|
| 6.9 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
Three
Months Ended June 30, 2023 | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Revenue | |
$ | 2,829,519 | |
|
$ | 834,262 | |
|
$ | (232 | ) |
|
$ | — | |
|
$ | 3,663,549 | |
| Cost of revenue | |
| 2,646,633 | |
|
| 766,838 | |
|
| — | |
|
| — | |
|
| 3,413,471 | |
| Gross profit (loss) | |
| 182,886 | |
|
| 67,424 | |
|
| (232 | ) |
|
| — | |
|
| 250,078 | |
| Equity in earnings (losses)
of joint ventures | |
| 3,517 | |
|
| 234 | |
|
| (307,254 | ) |
|
| — | |
|
| (303,503 | ) |
| General and administrative expenses | |
| — | |
|
| — | |
|
| (4,010 | ) |
|
| (38,873 | ) |
|
| (42,883 | ) |
| Restructuring costs | |
| — | |
|
| — | |
|
| — | |
|
| (9,115 | ) |
|
| (9,115 | ) |
| Income (loss) from operations | |
$ | 186,403 | |
|
$ | 67,658 | |
|
$ | (311,496 | ) |
|
$ | (47,988 | ) |
|
$ | (105,423 | ) |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Gross profit as a % of revenue | |
| 6.5 | % |
|
| 8.1 | % |
|
| — | |
|
| — | |
|
| 6.8 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
Nine
Months Ended June 30, 2024 | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Revenue | |
$ | 9,324,140 | |
|
$ | 2,670,034 | |
|
$ | 830 | |
|
$ | — | |
|
$ | 11,995,004 | |
| Cost of revenue | |
| 8,764,863 | |
|
| 2,439,953 | |
|
| — | |
|
| — | |
|
| 11,204,816 | |
| Gross profit | |
| 559,277 | |
|
| 230,081 | |
|
| 830 | |
|
| — | |
|
| 790,188 | |
| Equity in earnings (losses)
of joint ventures | |
| 11,866 | |
|
| 12,847 | |
|
| (26,548 | ) |
|
| — | |
|
| (1,835 | ) |
| General and administrative expenses | |
| — | |
|
| — | |
|
| (12,667 | ) |
|
| (103,952 | ) |
|
| (116,619 | ) |
| Restructuring costs | |
| — | |
|
| — | |
|
| — | |
|
| (80,670 | ) |
|
| (80,670 | ) |
| Income (loss) from operations | |
$ | 571,143 | |
|
$ | 242,928 | |
|
$ | (38,385 | ) |
|
$ | (184,622 | ) |
|
$ | 591,064 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Gross profit as a % of revenue | |
| 6.0 | % |
|
| 8.6 | % |
|
| — | |
|
| — | |
|
| 6.6 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Contracted backlog | |
$ | 8,883,852 | |
|
$ | 3,909,146 | |
|
$ | — | |
|
$ | — | |
|
$ | 12,792,998 | |
| Awarded backlog | |
| 8,468,398 | |
|
| 2,100,828 | |
|
| — | |
|
| — | |
|
| 10,569,226 | |
| Total backlog | |
$ | 17,352,250 | |
|
$ | 6,009,974 | |
|
$ | — | |
|
$ | — | |
|
$ | 23,362,224 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Total backlog – Design
only | |
$ | 15,884,131 | |
|
$ | 6,009,974 | |
|
$ | — | |
|
$ | — | |
|
$ | 21,894,105 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
Nine
Months Ended June 30, 2023 | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Revenue | |
$ | 8,039,000 | |
|
$ | 2,496,879 | |
|
$ | 197 | |
|
$ | — | |
|
$ | 10,536,076 | |
| Cost of revenue | |
| 7,519,898 | |
|
| 2,323,018 | |
|
| — | |
|
| — | |
|
| 9,842,916 | |
| Gross profit | |
| 519,102 | |
|
| 173,861 | |
|
| 197 | |
|
| — | |
|
| 693,160 | |
| Equity in earnings (losses)
of joint ventures | |
| 9,278 | |
|
| 8,943 | |
|
| (304,439 | ) |
|
| — | |
|
| (286,218 | ) |
| General and administrative expenses | |
| — | |
|
| — | |
|
| (9,605 | ) |
|
| (103,037 | ) |
|
| (112,642 | ) |
| Restructuring costs | |
| — | |
|
| — | |
|
| — | |
|
| (50,547 | ) |
|
| (50,547 | ) |
| Income (loss) from operations | |
$ | 528,380 | |
|
$ | 182,804 | |
|
$ | (313,847 | ) |
|
$ | (153,584 | ) |
|
$ | 243,753 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Gross profit as a % of revenue | |
| 6.5 | % |
|
| 7.0 | % |
|
| — | |
|
| — | |
|
| 6.6 | % |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Contracted backlog | |
$ | 8,094,025 | |
|
$ | 4,219,746 | |
|
$ | — | |
|
$ | — | |
|
$ | 12,313,771 | |
| Awarded backlog | |
| 8,771,369 | |
|
| 2,125,692 | |
|
| — | |
|
| — | |
|
| 10,897,061 | |
| Total backlog | |
$ | 16,865,394 | |
|
$ | 6,345,438 | |
|
$ | — | |
|
$ | — | |
|
$ | 23,210,832 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Total backlog – Design
only | |
$ | 14,918,971 | |
|
$ | 6,345,438 | |
|
$ | — | |
|
$ | — | |
|
$ | 21,264,409 | |
| AECOM |
| Regulation
G Information |
(in
millions) |
Reconciliation of Revenue to Net
Service Revenue (NSR)
| | |
Three
Months Ended | |
|
Nine
Months Ended | |
| | |
Jun
30,
2023 | |
|
Mar
31,
2024 | |
|
Jun
30,
2024 | |
|
Jun
30,
2023 | |
|
Jun
30,
2024 | |
| Americas | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Revenue | |
$ | 2,829.5 | |
|
$ | 3,038.6 | |
|
$ | 3,246.9 | |
|
$ | 8,039.0 | |
|
$ | 9,324.2 | |
| Less: Pass-through revenue | |
| 1,814.5 | |
|
| 1,965.4 | |
|
| 2,150.6 | |
|
| 5,124.6 | |
|
| 6,177.0 | |
| Net service revenue | |
$ | 1,015.0 | |
|
$ | 1,073.2 | |
|
$ | 1,096.3 | |
|
$ | 2,914.4 | |
|
$ | 3,147.2 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| International | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Revenue | |
$ | 834.3 | |
|
$ | 904.8 | |
|
$ | 904.2 | |
|
$ | 2,496.9 | |
|
$ | 2,670.0 | |
| Less: Pass-through revenue | |
| 145.4 | |
|
| 159.0 | |
|
| 175.0 | |
|
| 436.2 | |
|
| 465.1 | |
| Net service revenue | |
$ | 688.9 | |
|
$ | 745.8 | |
|
$ | 729.2 | |
|
$ | 2,060.7 | |
|
$ | 2,204.9 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Segment Performance
(excludes ACAP) | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Revenue | |
$ | 3,663.8 | |
|
$ | 3,943.4 | |
|
$ | 4,151.1 | |
|
$ | 10,535.9 | |
|
$ | 11,994.2 | |
| Less: Pass-through revenue | |
| 1,959.9 | |
|
| 2,124.4 | |
|
| 2,325.6 | |
|
| 5,560.8 | |
|
| 6,642.1 | |
| Net service revenue | |
$ | 1,703.9 | |
|
$ | 1,819.0 | |
|
$ | 1,825.5 | |
|
$ | 4,975.1 | |
|
$ | 5,352.1 | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Consolidated | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Revenue | |
$ | 3,663.6 | |
|
$ | 3,943.9 | |
|
$ | 4,151.2 | |
|
$ | 10,536.1 | |
|
$ | 11,995.0 | |
| Less: Pass-through revenue | |
| 1,959.9 | |
|
| 2,124.4 | |
|
| 2,325.6 | |
|
| 5,560.8 | |
|
| 6,642.1 | |
| Net service revenue | |
$ | 1,703.7 | |
|
$ | 1,819.5 | |
|
$ | 1,825.6 | |
|
$ | 4,975.3 | |
|
$ | 5,352.9 | |
Reconciliation of Total Debt to Net Debt
| | |
| Balances
at: | |
| | |
Jun 30, 2023 | |
|
Mar 31, 2024 | |
|
Jun 30, 2024 | |
| Short-term debt | |
$ | 3.9 | |
|
$ | 2.9 | |
|
$ | 2.5 | |
| Current portion of long-term debt | |
| 53.0 | |
|
| 88.6 | |
|
| 63.6 | |
| Long-term debt, excluding unamortized debt issuance costs | |
| 2,162.6 | |
|
| 2,114.4 | |
|
| 2,475.4 | |
| Total debt | |
| 2,219.5 | |
|
| 2,205.9 | |
|
| 2,541.5 | |
| Less: Total cash and cash equivalents | |
| 1,257.7 | |
|
| 1,185.8 | |
|
| 1,644.8 | |
| Net debt | |
$ | 961.8 | |
|
$ | 1,020.1 | |
|
$ | 896.7 | |
Reconciliation of Net Cash Provided
by Operating Activities to Free Cash Flow
| | |
Three Months
Ended | |
|
Nine Months
Ended | |
| | |
Jun 30,
2023 | |
|
Mar 31,
2024 | |
|
Jun 30,
2024 | |
|
Jun 30,
2023 | |
|
Jun 30,
2024 | |
| Net cash provided by operating activities | |
$ | 279.3 | |
|
$ | 94.3 | |
|
$ | 291.3 | |
|
$ | 410.8 | |
|
$ | 528.7 | |
| Capital expenditures, net | |
| (14.4 | ) |
|
| (20.3 | ) |
|
| (18.4 | ) |
|
| (83.0 | ) |
|
| (94.9 | ) |
| Free cash flow | |
$ | 264.9 | |
|
$ | 74.0 | |
|
$ | 272.9 | |
|
$ | 327.8 | |
|
$ | 433.8 | |
AECOM
Regulation
G Information
(in
millions, except per share data)
| |
|
Three
Months Ended |
|
|
Nine
Months Ended |
|
| |
|
Jun
30,
2023 |
|
|
Mar
31,
2024 |
|
|
Jun
30,
2024 |
|
|
Jun
30,
2023 |
|
|
Jun
30,
2024 |
|
| Reconciliation
of Income from Operations to Adjusted Income from Operations to Adjusted EBITDA with Noncontrolling Interests (NCI) to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Loss) income from
operations |
|
$ |
(105.4 |
) |
|
$ |
200.5 |
|
|
$ |
227.5 |
|
|
$ |
243.8 |
|
|
$ |
591.1 |
|
| Noncore
AECOM Capital loss (income) |
|
|
311.5 |
|
|
|
(0.6 |
) |
|
|
(0.2 |
) |
|
|
313.9 |
|
|
|
38.3 |
|
| Restructuring
costs |
|
|
9.1 |
|
|
|
35.5 |
|
|
|
29.0 |
|
|
|
50.5 |
|
|
|
80.7 |
|
| Amortization
of intangible assets |
|
|
4.6 |
|
|
|
4.7 |
|
|
|
4.7 |
|
|
|
13.9 |
|
|
|
14.0 |
|
| Adjusted income from operations |
|
$ |
219.8 |
|
|
$ |
240.1 |
|
|
$ |
261.0 |
|
|
$ |
622.1 |
|
|
$ |
724.1 |
|
| Other
income |
|
|
1.7 |
|
|
|
2.5 |
|
|
|
1.1 |
|
|
|
6.2 |
|
|
|
6.2 |
|
| Fair
value adjustment included in other income |
|
|
— |
|
|
|
— |
|
|
|
1.6 |
|
|
|
— |
|
|
|
1.6 |
|
| Depreciation |
|
|
37.5 |
|
|
|
38.3 |
|
|
|
37.7 |
|
|
|
113.6 |
|
|
|
113.5 |
|
| Adjusted EBITDA with noncontrolling
interests (NCI) |
|
$ |
259.0 |
|
|
$ |
280.9 |
|
|
$ |
301.4 |
|
|
$ |
741.9 |
|
|
$ |
845.4 |
|
| Net
income attributable to NCI from continuing operations excluding interest income included in NCI |
|
|
(11.8 |
) |
|
|
(12.7 |
) |
|
|
(15.9 |
) |
|
|
(29.5 |
) |
|
|
(40.3 |
) |
| Amortization
of intangible assets included in NCI |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
(0.2 |
) |
| Adjusted EBITDA |
|
$ |
247.1 |
|
|
$ |
268.2 |
|
|
$ |
285.5 |
|
|
$ |
712.0 |
|
|
$ |
804.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation
of Income from Continuing Operations Before Taxes to Adjusted Income from Continuing Operations Before Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Loss) income from continuing
operations before taxes |
|
$ |
(133.7 |
) |
|
$ |
170.8 |
|
|
$ |
192.9 |
|
|
$ |
156.6 |
|
|
$ |
500.2 |
|
| Noncore
AECOM Capital loss (income) |
|
|
311.5 |
|
|
|
(0.6 |
) |
|
|
(0.2 |
) |
|
|
313.9 |
|
|
|
38.3 |
|
| Fair
value adjustment included in other income |
|
|
— |
|
|
|
— |
|
|
|
1.6 |
|
|
|
— |
|
|
|
1.6 |
|
| Restructuring
costs |
|
|
9.1 |
|
|
|
35.5 |
|
|
|
29.0 |
|
|
|
50.5 |
|
|
|
80.7 |
|
| Amortization
of intangible assets |
|
|
4.6 |
|
|
|
4.7 |
|
|
|
4.7 |
|
|
|
13.9 |
|
|
|
14.0 |
|
| Financing
charges in interest expense |
|
|
1.2 |
|
|
|
1.2 |
|
|
|
7.0 |
|
|
|
3.6 |
|
|
|
9.5 |
|
| Adjusted income from continuing
operations before taxes |
|
$ |
192.7 |
|
|
$ |
211.6 |
|
|
$ |
235.0 |
|
|
$ |
538.5 |
|
|
$ |
644.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation
of Income Taxes for Continuing Operations to Adjusted Income Taxes for Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax (benefit) expense
for continuing operations |
|
$ |
(20.0 |
) |
|
$ |
45.4 |
|
|
$ |
46.1 |
|
|
$ |
46.9 |
|
|
$ |
118.1 |
|
| Tax
effect of the above adjustments(1) |
|
|
90.2 |
|
|
|
10.4 |
|
|
|
11.6 |
|
|
|
103.9 |
|
|
|
36.0 |
|
| Valuation
allowances and other tax only items |
|
|
(21.4 |
) |
|
|
— |
|
|
|
0.8 |
|
|
|
(20.8 |
) |
|
|
0.8 |
|
| Adjusted income tax expense
for continuing operations |
|
$ |
48.8 |
|
|
$ |
55.8 |
|
|
$ |
58.5 |
|
|
$ |
130.0 |
|
|
$ |
154.9 |
|
(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 Noncontrolling Interests (NCI) from Continuing Operations to Adjusted Net Income Attributable to Noncontrolling
Interests from Continuing Operations | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Net income attributable to noncontrolling
interests from continuing operations | |
$ | (11.8 | ) |
|
$ | (14.1 | ) |
|
$ | (17.4 | ) |
|
$ | (29.5 | ) |
|
$ | (44.6 | ) |
| Amortization of intangible assets
included in NCI | |
| (0.1 | ) |
|
| — | |
|
| — | |
|
| (0.4 | ) |
|
| (0.2 | ) |
| Adjusted net income attributable
to noncontrolling interests from continuing operations | |
$ | (11.9 | ) |
|
$ | (14.1 | ) |
|
$ | (17.4 | ) |
|
$ | (29.9 | ) |
|
$ | (44.8 | ) |
AECOM
Regulation G Information
(in millions, except per
share data)
| | |
Three Months Ended | | |
Nine Months Ended | |
| | |
Jun 30,
2023 | | |
Mar 31,
2024 | | |
Jun 30,
2024 | | |
Jun 30,
2023 | | |
Jun 30,
2024 | |
| Reconciliation of Net Income Attributable to AECOM from Continuing Operations to Adjusted Net Income Attributable to AECOM from Continuing Operations | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net (loss) income attributable to AECOM from continuing operations | |
$ | (125.5 | ) | |
$ | 111.3 | | |
$ | 129.4 | | |
$ | 80.2 | | |
$ | 337.5 | |
| Noncore AECOM Capital loss (income), net of NCI | |
| 311.5 | | |
| (0.6 | ) | |
| (0.2 | ) | |
| 313.9 | | |
| 38.3 | |
| Fair value adjustment included in other income | |
| — | | |
| — | | |
| 1.6 | | |
| — | | |
| 1.6 | |
| Restructuring costs | |
| 9.1 | | |
| 35.5 | | |
| 29.0 | | |
| 50.5 | | |
| 80.7 | |
| Amortization of intangible assets | |
| 4.6 | | |
| 4.7 | | |
| 4.7 | | |
| 13.9 | | |
| 14.0 | |
| Financing charges in interest expense | |
| 1.2 | | |
| 1.2 | | |
| 7.0 | | |
| 3.6 | | |
| 9.5 | |
| Tax effect of the above adjustments(1) | |
| (90.2 | ) | |
| (10.4 | ) | |
| (11.6 | ) | |
| (103.9 | ) | |
| (36.0 | ) |
| Valuation allowances and other tax only items | |
| 21.4 | | |
| — | | |
| (0.8 | ) | |
| 20.8 | | |
| (0.8 | ) |
| Amortization of intangible assets included in NCI | |
| (0.1 | ) | |
| — | | |
| — | | |
| (0.4 | ) | |
| (0.2 | ) |
| Adjusted net income attributable to AECOM from continuing operations | |
$ | 132.0 | | |
$ | 141.7 | | |
$ | 159.1 | | |
$ | 378.6 | | |
$ | 444.6 | |
(1) Adjusts the 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 AECOM from Continuing Operations per Diluted Share to Adjusted Net Income Attributable to AECOM from Continuing Operations per Diluted Share | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net (loss) income attributable to AECOM from continuing operations per diluted share | |
$ | (0.90 | ) | |
$ | 0.81 | | |
$ | 0.95 | | |
$ | 0.57 | | |
$ | 2.47 | |
| Per diluted share adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Noncore AECOM Capital loss, net of NCI | |
| 2.22 | | |
| — | | |
| — | | |
| 2.24 | | |
| 0.28 | |
| Fair value adjustment included in other income | |
| — | | |
| — | | |
| 0.01 | | |
| — | | |
| 0.01 | |
| Restructuring costs | |
| 0.06 | | |
| 0.26 | | |
| 0.21 | | |
| 0.36 | | |
| 0.59 | |
| Amortization of intangible assets | |
| 0.03 | | |
| 0.03 | | |
| 0.03 | | |
| 0.10 | | |
| 0.10 | |
| Financing charges in interest expense | |
| 0.01 | | |
| 0.01 | | |
| 0.05 | | |
| 0.03 | | |
| 0.07 | |
| Tax effect of the above adjustments(1) | |
| (0.63 | ) | |
| (0.07 | ) | |
| (0.08 | ) | |
| (0.75 | ) | |
| (0.26 | ) |
| Valuation allowances and other tax only items | |
| 0.15 | | |
| — | | |
| (0.01 | ) | |
| 0.15 | | |
| (0.01 | ) |
| Adjusted net income attributable to AECOM from continuing operations per diluted share | |
$ | 0.94 | | |
$ | 1.04 | | |
$ | 1.16 | | |
$ | 2.70 | | |
$ | 3.25 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares outstanding – basic | |
| 138.7 | | |
| 136.0 | | |
| 136.0 | | |
| 138.8 | | |
| 136.0 | |
| Weighted average shares outstanding – diluted | |
| 140.0 | | |
| 136.7 | | |
| 136.8 | | |
| 140.3 | | |
| 136.9 | |
(1) Adjusts the 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 AECOM from Continuing Operations to Adjusted EBITDA
| | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net (loss) income attributable to AECOM from continuing operations | |
$ | (125.5 | ) | |
$ | 111.3 | | |
$ | 129.4 | | |
$ | 80.2 | | |
$ | 337.5 | |
| Income tax (benefit) expense | |
| (20.0 | ) | |
| 45.4 | | |
| 46.1 | | |
| 46.9 | | |
| 118.1 | |
| Depreciation and amortization | |
| 43.1 | | |
| 44.2 | | |
| 46.4 | | |
| 130.5 | | |
| 133.7 | |
| Interest income, net of NCI | |
| (8.8 | ) | |
| (14.1 | ) | |
| (14.3 | ) | |
| (24.5 | ) | |
| (39.1 | ) |
| Interest expense | |
| 38.9 | | |
| 47.7 | | |
| 51.4 | | |
| 118.0 | | |
| 140.4 | |
| Amortized bank fees included in interest expense | |
| (1.2 | ) | |
| (1.2 | ) | |
| (4.0 | ) | |
| (3.6 | ) | |
| (6.4 | ) |
| Noncore AECOM Capital loss (income), net of NCI | |
| 311.5 | | |
| (0.6 | ) | |
| (0.2 | ) | |
| 313.9 | | |
| 38.3 | |
| Fair value adjustment included in other income | |
| — | | |
| — | | |
| 1.7 | | |
| — | | |
| 1.7 | |
| Restructuring costs | |
| 9.1 | | |
| 35.5 | | |
| 29.0 | | |
| 50.6 | | |
| 80.7 | |
| Adjusted EBITDA | |
$ | 247.1 | | |
$ | 268.2 | | |
$ | 285.5 | | |
$ | 712.0 | | |
$ | 804.9 | |
AECOM
Regulation G Information
(in millions, except
per share data)
| | |
Three Months Ended | | |
Nine Months Ended | |
| | |
Jun 30,
2023 | | |
Mar 31,
2024 | | |
Jun 30,
2024 | | |
Jun 30,
2023 | | |
Jun 30,
2024 | |
| Reconciliation of Segment Income from Operations to Adjusted Income from Operations | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Americas Segment: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Segment Income from operations | |
$ | 186.4 | | |
$ | 189.2 | | |
$ | 207.4 | | |
$ | 528.4 | | |
$ | 571.2 | |
| Amortization of intangible assets | |
| 4.3 | | |
| 4.3 | | |
| 4.4 | | |
| 13.0 | | |
| 13.0 | |
| Adjusted segment income from operations | |
$ | 190.7 | | |
$ | 193.5 | | |
$ | 211.8 | | |
$ | 541.4 | | |
$ | 584.2 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| International Segment: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Segment Income from operations | |
$ | 67.6 | | |
$ | 81.2 | | |
$ | 84.6 | | |
$ | 182.8 | | |
$ | 242.9 | |
| Amortization of intangible assets | |
| 0.3 | | |
| 0.4 | | |
| 0.3 | | |
| 0.9 | | |
| 1.0 | |
| Adjusted segment income from operations | |
$ | 67.9 | | |
$ | 81.6 | | |
$ | 84.9 | | |
$ | 183.7 | | |
$ | 243.9 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Segment Performance (excludes ACAP and G&A): | |
| | | |
| | | |
| | | |
| | | |
| | |
| Segment Income from operations | |
$ | 254.0 | | |
$ | 270.4 | | |
$ | 292.0 | | |
$ | 711.2 | | |
$ | 814.1 | |
| Amortization of intangible assets | |
| 4.6 | | |
| 4.7 | | |
| 4.7 | | |
| 13.9 | | |
| 14.0 | |
| Adjusted segment income from operations | |
$ | 258.6 | | |
$ | 275.1 | | |
$ | 296.7 | | |
$ | 725.1 | | |
$ | 828.1 | |
AECOM
Regulation G Information
| FY2024 GAAP EPS Guidance based
on Adjusted EPS Guidance |
|
|
|
| (all figures approximate) |
|
|
|
| |
|
|
|
| |
|
Fiscal Year End 2024 |
|
| GAAP EPS guidance |
|
$3.51 to $3.74 |
|
| Adjusted EPS excludes: |
|
|
|
| Amortization of intangible
assets |
|
$0.14 |
|
| Amortization of deferred
financing fees |
|
$0.08 |
|
| Non-core AECOM Capital |
|
$0.28 |
|
| Restructuring expenses |
|
$0.75 to $0.59 |
|
| Tax
effect of the above items |
|
($0.31)
to ($0.28) |
|
| Adjusted EPS guidance |
|
$4.45
to $4.55 |
|
| |
|
|
|
| FY2024 GAAP Net Income from Continuing Operations
Guidance based on Adjusted EBITDA Guidance |
|
|
|
| (in millions, all figures approximate) |
|
|
|
| |
|
|
|
| |
|
Fiscal
Year End 2024 |
|
| GAAP net income from continuing
operations guidance |
|
$537
to $558 |
|
| Net income attributable
to noncontrolling interests from continuing operations |
|
($60)
to ($50) |
|
| Net income attributable
to AECOM from continuing operations |
|
$477
to $508 |
|
| Adjusted net income attributable
to AECOM from continuing operations excludes: |
|
|
|
| Amortization
of intangible assets |
|
$19 |
|
| Amortization
of deferred financing fees |
|
$11 |
|
| Noncore
AECOM Capital |
|
$38 |
|
| Fair
value adjustment |
|
$2 |
|
| Restructuring
expenses |
|
$100
to $80 |
|
| Tax
effect of the above items |
|
($42)
to ($39) |
|
| Adjusted net income attributable
to AECOM from continuing operations |
|
$605
to $619 |
|
| Adjusted EBITDA excludes:
|
|
|
|
| Depreciation
|
|
$152 |
|
| Adjusted
interest expense, net |
|
$118
to $122 |
|
| Tax
expense, including tax effect of the above items |
|
$200
to $212 |
|
| Adjusted EBITDA guidance
|
|
$1,075
to $1,105 |
|
| |
|
|
|
| FY2024 GAAP Interest
Expense Guidance based on Adjusted Interest Expense Guidance |
|
|
|
| (in millions, all figures approximate) |
|
|
|
| |
|
|
|
|
|
Fiscal
Year End 2024 |
|
| GAAP interest expense guidance |
|
$180 to $184 |
|
| Finance charges in interest expense |
|
($11) |
|
| Interest income, net of NCI |
|
($51) |
|
| Adjusted net interest expense guidance |
|
$118
to $122 |
|
| |
|
|
|
| FY2024 GAAP Income
Tax Guidance based on Adjusted Income Tax Guidance |
|
|
|
| (in millions, all figures approximate) |
|
|
|
| |
|
|
|
|
|
Fiscal
Year End 2024 |
|
| GAAP income tax expense
guidance |
|
$158
to $174 |
|
| Tax effect of adjusting
items |
|
$42
to $38 |
|
| Adjusted income tax expense guidance |
|
$200
to $212 |
|
FY2024 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 2024 | |
| Income from operations as a % of revenue | |
5.7 | % |
| Pass-through revenues | |
8.3 | % |
| Amortization of intangible assets | |
0.1 | % |
| Corporate net expense | |
0.9 | % |
| Restructuring expenses* | |
0.6 | % |
| Segment adjusted operating income as a % of net service revenue | |
15.6 | % |
*Based on midpoint of FY2024 guidance
Note:
Variances in tables are due to rounding.
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- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
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| Namespace Prefix: |
dei_ |
| Data Type: |
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| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
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| Namespace Prefix: |
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| Period Type: |
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| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
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| Namespace Prefix: |
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| Data Type: |
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| Balance Type: |
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| Period Type: |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
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| Period Type: |
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| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
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dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
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| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
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