- Delivered strong second quarter and first half financial
performance
- Increased financial guidance based on year-to-date
operational outperformance and confidence in the second half of the
year
- Backlog reached an all-time high, driven by a continued near
record win rate and strength in nearly all end markets
- Strong cash flow enabled the return of $145 million to
shareholders in the first half of the year through share
repurchases and dividends, consistent with the Company’s
returns-focused capital allocation policy
AECOM (NYSE:ACM), the world’s trusted infrastructure consulting
firm, today reported second quarter fiscal 2024 results.
Second Quarter Fiscal
2024
(from Continuing Operations;
$ in millions, except EPS)
As Reported
Adjusted1
(Non-GAAP)
As Reported YoY %
Change
Adjusted YoY % Change
Revenue
$3,944
--
13%
--
Net Service Revenue (NSR)2
--
$1,820
--
8%
Operating Income
$200
$240
2%
13%
Segment Operating Margin3
--
15.1%
--
+70 bps
Net Income
$111
$142
(6%)
10%
EPS (Fully Diluted)
$0.81
$1.04
(4%)
13%
EBITDA4
--
$268
--
10%
EBITDA Margin5
--
15.4%
--
+40 bps
Operating Cash Flow
$94
--
725%
--
Free Cash Flow6
--
$74
--
NM
Total Backlog
$23,745
--
3%7
--
Second Quarter Fiscal 2024
Highlights
- Reflecting as reported performance from continuing operations,
revenue increased 13% to $3.9 billion, operating income increased
2% to $200 million, the operating margin decreased 60 basis points
to 5.1% due to restructuring-related expenses, net income decreased
6% to $111 million, and diluted earnings per share decreased 4% to
$0.81.
- Net service revenue2 increased by 8%, driven by the Water,
Transportation and Environment end markets, where AECOM is ranked
#1 by ENR, and a growing contribution from larger wins.
- The net service revenue growth rate included an approximately
100 basis point headwind from fewer working days compared to the
prior year period.
- The segment adjusted1 operating margin3 increased by 70 basis
points to 15.1% and the adjusted EBITDA margin5 increased by 40
basis points to 15.4%; both metrics set a new second quarter record
driven by the benefits of growth, operating efficiencies, and
strong execution, while enabling strong investments in business
development.
- Adjusted1 EBITDA4 increased by 10% to a new record and
adjusted1 EPS increased by 13%; adjusted1 EPS increased by 17% on
an operational basis8, which was partially offset by a higher tax
rate compared to the prior year.
- Total backlog increased by 3%7 to a record level driven by a
continued high win rate and a growing contribution from larger wins
that enhance long-term earnings visibility.
‒ Program Management backlog increased by 45%
to a record high, with strength driven by large Transportation,
Water, and energy transition related wins.
‒ Through ongoing investments in Program
Management and Advisory, the Company has extended its competitive
advantages, expanded its addressable share of the high value global
infrastructure cycle, and elevated its value proposition for
clients.
Fiscal 2024 Financial
Guidance
- The Company raised its fiscal 2024 adjusted EBITDA4 guidance to
between $1,070 million and $1,105 million, reflecting strong
operational performance to date and confidence in the second half
of the fiscal year, supported by a record backlog position.
- The Company’s guidance also includes expectations for:
‒ Organic NSR2 growth of approximately 8% to
10%.
‒ A segment adjusted1 operating income
margin3 of approximately 15.6%, representing a 90 basis point
increase from fiscal 2023.
‒ Adjusted1 EPS of between $4.35 and $4.55,
representing a 20% increase at the mid-point over fiscal 2023.
- Other assumptions incorporated into guidance:
‒ 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 137
million, which reflects only shares repurchased to-date, though the
Company intends to continue repurchasing stock which would provide
a benefit to per share earnings.
‒ An adjusted effective tax rate of between
24% and 26% for the full year; this includes an expected tax rate
in the high 20%’s in the third fiscal quarter, consistent with last
year’s phasing.
- The Company expects to deliver a return on invested capital9
(ROIC) of approximately 20% in fiscal 2024.
- See the Regulation G Information tables at the back 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
- Operating cash flow in the second quarter was $94 million and
free cash flow6 was $74 million, which contributed to a 156%
increase in free cash flow in the first half of the fiscal year as
compared to the prior year period.
- The Company’s returns-focused capital allocation policy
prioritizes investments in organic growth followed by share
repurchases and dividends.
– Returned $145 million to shareholders
through share repurchases and dividends in the first half of the
fiscal year, consistent with the Company’s free cash flow
phasing.
– In total, the Company has returned nearly
$2.1 billion of capital to shareholders through share repurchases
and dividends since September 2020.
- In April, the Company completed a strategic refinancing of its
revolving credit facility, Term Loan A and Term Loan B to lock in
historically attractive pricing and extend the maturity of its
debt, with no material change to expected annual net interest
expense. This transaction enhanced the Company’s ability to operate
with greater certainty, invest in organic growth, and return
capital to shareholders.
“We delivered strong second quarter and first half financial
performance, and as a result we are increasing the mid-point of our
adjusted EBITDA guidance for the full year,” said Troy Rudd,
AECOM’s chief executive officer. “Across our performance, our
strong revenue growth, record profitability, and a record backlog
and pipeline demonstrate the competitive advantage we have built.
Our Program Management and Advisory services are a key element of
our success as we leverage the strength of our 52,000 technical
experts, elevate the value of our capabilities and capture a
greater share of the profit opportunity on our pursuits. Our
Program Management backlog increased 45% year-over-year in the
quarter and continues to represent an increasing share of our work,
which provides us with greater visibility as the secular mega
trends of global infrastructure investment, sustainability and
resilience, and the energy transition accelerate.”
“We are investing in our technical expertise and in global
collaboration, and as a result, we continue to win at a high rate,
which is evident in our record backlog and pipeline,” said Lara
Poloni, AECOM’s president. “To build on this momentum, we recently
launched our TechEx initiative aimed at elevating our culture
through an unrivaled commitment to technical and professional
development programs for our teams. When combined with our focus on
our highest-returning markets and largest clients, we have created
a platform that allows us to consistently bring our best resources
to our clients’ most challenging infrastructure investments. As a
result, on all of our largest wins, it is the strength of our
technical proposal and expertise that have led to our
successes.”
“Our strong second quarter and year-to-date results underpin our
confidence in the full year, including in delivering on the
increase to the mid-point of our adjusted EBITDA guidance,” said
Gaurav Kapoor, AECOM’s chief financial and operations officer.
“Building on the strength of our financial performance, after the
quarter ended, we successfully amended and extended our credit
facility, creating greater certainty around our cost of capital and
maintaining a prudent mix of approximately 70% fixed and 30%
floating rate debt. Importantly, even in the current higher
interest rate environment, we maintained our historically low cost
of debt and are able to continue to execute on our returns-focused
capital allocation policy with confidence.”
Business Segments
Americas
Revenue in the second quarter was $3.0 billion. Net service
revenue2 was $1.1 billion, a 10% increase from the prior year.
Operating income increased by 6% over the prior year to $189
million. On an adjusted1 basis, operating income increased by 6% to
$194 million. The adjusted operating margin on net service revenue
was 18.0%, which remains at the top of our industry, and includes
the positive impacts of growth and enables investments to enhance
the Company’s technical and digital capabilities and to pursue a
record volume of opportunities.
International
Revenue in the second quarter was $905 million. Net service
revenue2 was $746 million, a 6% increase from the prior year. The
Company had fewer working days compared to the prior year period,
which resulted in an approximately 200 basis point headwind to net
service revenue growth.
Operating income and adjusted1 operating income both increased
by 35% over the prior year to $81 million and $82 million,
respectively. The adjusted operating margin on net service revenue
increased by 240 basis points over the prior year to 10.9%, which
is driven by the Company’s narrowed geographic focus, reduced real
estate footprint, and ongoing operational efficiencies.
AECOM Capital
After the quarter ended, the Company completed a transaction
that transitioned the AECOM Capital team to a new platform and
enabled the team to continue to support AECOM Capital’s existing
investments and investment vehicles in a manner consistent with its
current obligations, while capping expected future G&A costs
associated with the wind-down of activities.
Discontinued Operations
The Company recorded a $103 million loss related to revisions of
estimated contingent consideration receivables recognized at the
time of sale related to the 2021 sale of the Company’s civil
construction business.
Balance Sheet
As of March 31, 2024, AECOM had $1.2 billion of total cash and
cash equivalents, $2.2 billion of total debt and $1.0 billion of
net debt (total debt less cash and cash equivalents). Net
leverage10 was 0.9x.
Tax Rate
The effective tax rate was 26.6% in the second quarter. On an
adjusted1 basis, the effective tax rate was 28.2%. 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 Includes the impact from net service
revenue growth, margin expansion and lower share count.
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, 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
Six Months Ended
March 31, 2023
March 31, 2024
% Change
March 31, 2023
March 31, 2024
% Change
Revenue
$
3,490,172
$
3,943,833
13.0 %
$
6,872,527
$
7,843,753
14.1 %
Cost of revenue
3,262,078
3,682,659
12.9 %
6,429,445
7,338,609
14.1 %
Gross profit
228,094
261,174
14.5 %
443,082
505,144
14.0 %
Equity in earnings (losses) of joint
ventures
7,456
19,459
161.0 %
17,285
(9,482)
(154.9)%
General and administrative expenses
(34,147)
(44,686)
30.9 %
(69,759)
(80,410)
15.3 %
Restructuring costs
(3,973)
(35,465)
792.7 %
(41,432)
(51,645)
24.7 %
Income from operations
197,430
200,482
1.5 %
349,176
363,607
4.1 %
Other income
2,501
2,622
4.8 %
4,485
5,191
15.7 %
Interest income
9,804
15,422
57.3 %
15,690
27,524
75.4 %
Interest expense
(42,372)
(47,723)
12.6 %
(79,072)
(88,980)
12.5 %
Income from continuing operations before
taxes
167,363
170,803
2.1 %
290,279
307,342
5.9 %
Income tax expense for continuing
operations
41,105
45,385
10.4 %
66,870
72,043
7.7 %
Income from continuing operations
126,258
125,418
(0.7)%
223,409
235,299
5.3 %
Loss from discontinued operations
(41,775)
(109,388)
161.9 %
(42,163)
(110,675)
162.5 %
Net income
84,483
16,030
(81.0)%
181,246
124,624
(31.2)%
Net income attributable to noncontrolling
interests from continuing operations
(8,089)
(14,113)
74.5 %
(17,733)
(27,230)
53.6 %
Net loss (income) attributable to
noncontrolling interests from discontinued operations
221
(910)
(511.8)%
1,047
(1,949)
(286.2)%
Net income attributable to noncontrolling
interests
(7,868)
(15,023)
90.9 %
(16,686)
(29,179)
74.9 %
Net income attributable to AECOM from
continuing operations
118,169
111,305
(5.8)%
205,676
208,069
1.2 %
Net loss attributable to AECOM from
discontinued operations
(41,554)
(110,298)
165.4 %
(41,116)
(112,624)
173.9 %
Net income attributable to AECOM
$
76,615
$
1,007
(98.7)%
$
164,560
$
95,445
(42.0)%
Net income (loss) attributable to AECOM
per share:
Basic continuing operations per share
$
0.85
$
0.82
(3.5)%
$
1.48
$
1.53
3.4 %
Basic discontinued operations per
share
(0.30)
(0.81)
170.0 %
(0.29)
(0.83)
186.2 %
Basic earnings per share
$
0.55
$
0.01
(98.2)%
$
1.19
$
0.70
(41.2)%
Diluted continuing operations per
share
$
0.84
$
0.81
(3.6)%
$
1.46
$
1.52
4.1 %
Diluted discontinued operations per
share
(0.29)
(0.80)
175.9 %
(0.29)
(0.82)
182.8 %
Diluted earnings per share
$
0.55
$
0.01
(98.2)%
$
1.17
$
0.70
(40.2)%
Weighted average shares outstanding:
Basic
138,927
136,006
(2.1)%
138,807
135,952
(2.1)%
Diluted
140,335
136,712
(2.6)%
140,489
136,907
(2.5)%
AECOM
Balance Sheet
Information
(unaudited - in
thousands)
September 30, 2023
March 31, 2024
Balance Sheet Information:
Total cash and cash equivalents
$
1,260,206
$
1,185,806
Accounts receivable and contract assets –
net
4,069,504
4,452,344
Working capital
319,228
361,671
Total debt, excluding unamortized debt
issuance costs
2,217,255
2,205,837
Total assets
11,233,398
11,457,393
Total AECOM stockholders’ equity
2,212,332
2,198,667
AECOM
Reportable Segments
(unaudited - in
thousands)
Americas
International
AECOM Capital
Corporate
Total
Three Months Ended March 31,
2024
Revenue
$
3,038,575
$
904,787
$
471
$
-
$
3,943,833
Cost of revenue
2,854,102
828,557
-
-
3,682,659
Gross profit
184,473
76,230
471
-
261,174
Equity in earnings of joint ventures
4,730
4,948
9,781
-
19,459
General and administrative expenses
-
-
(9,676)
(35,010)
(44,686)
Restructuring costs
-
-
-
(35,465)
(35,465)
Income from operations
$
189,203
$
81,178
$
576
$
(70,475)
$
200,482
Gross profit as a % of revenue
6.1%
8.4%
-
-
6.6%
Three Months Ended March 31,
2023
Revenue
$
2,630,170
$
859,821
$
181
$
-
$
3,490,172
Cost of revenue
2,456,859
805,219
-
-
3,262,078
Gross profit
173,311
54,602
181
-
228,094
Equity in earnings (losses) of joint
ventures
4,878
5,411
(2,833)
-
7,456
General and administrative expenses
-
-
(2,917)
(31,230)
(34,147)
Restructuring costs
-
-
-
(3,973)
(3,973)
Income (loss) from operations
$
178,189
$
60,013
$
(5,569)
$
(35,203)
$
197,430
Gross profit as a % of revenue
6.6%
6.4%
-
-
6.5%
Six Months Ended March 31, 2024
Revenue
$
6,077,258
$
1,765,828
$
667
$
-
$
7,843,753
Cost of revenue
5,721,810
1,616,799
-
-
7,338,609
Gross profit
355,448
149,029
667
-
505,144
Equity in earnings (losses) of joint
ventures
8,388
9,230
(27,100)
-
(9,482)
General and administrative expenses
-
-
(12,127)
(68,283)
(80,410)
Restructuring costs
-
-
-
(51,645)
(51,645)
Income (loss) from operations
$
363,836
$
158,259
$
(38,560)
$
(119,928)
$
363,607
Gross profit as a % of revenue
5.8%
8.4%
-
-
6.4%
Contracted backlog
$
8,760,619
$
4,261,367
$
-
$
-
$
13,021,986
Awarded backlog
8,616,783
2,105,750
-
-
10,722,533
Total backlog
$
17,377,402
$
6,367,117
$
-
$
-
$
23,744,519
Total backlog – Design only
$
15,924,738
$
6,367,117
$
-
$
-
$
22,291,855
Six Months Ended March 31, 2023
Revenue
$
5,209,481
$
1,662,617
$
429
$
-
$
6,872,527
Cost of revenue
4,873,265
1,556,180
-
-
6,429,445
Gross profit
336,216
106,437
429
-
443,082
Equity in earnings of joint ventures
5,761
8,709
2,815
-
17,285
General and administrative expenses
-
-
(5,595)
(64,164)
(69,759)
Restructuring costs
-
-
-
(41,432)
(41,432)
Income (loss) from operations
$
341,977
$
115,146
$
(2,351)
$
(105,596)
$
349,176
Gross profit as a % of revenue
6.5%
6.4%
-
-
6.4%
Contracted backlog
$
7,887,466
$
4,097,400
$
-
$
-
$
1,984,866
Awarded backlog
8,999,950
1,996,188
-
-
10,996,138
Total backlog
$
16,887,416
$
6,093,588
$
-
$
-
$
22,981,004
Total backlog – Design only
$
14,865,535
$
6,093,58
$
-
$
-
$
20,959,123
AECOM
Regulation G
Information
(in millions)
Reconciliation of Revenue to Net Service Revenue
(NSR)
Three Months Ended
Six Months Ended
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Mar 31, 2023
Mar 31, 2024
Americas
Revenue
$
2,630.2
$
3,038.7
$
3,038.6
$
5,209.5
$
6,077.3
Less: Pass-through revenue
1,654.5
2,061.0
1,965.4
3,310.1
4,026.4
Net service revenue
$
975.7
$
977.7
$
1,073.2
$
1,899.4
$
2,050.9
International
Revenue
$
859.8
$
861.0
$
904.8
$
1,662.6
$
1,765.8
Less: Pass-through revenue
156.9
131.1
159.0
290.8
290.1
Net service revenue
$
702.9
$
729.9
$
745.8
$
1,371.8
$
1,475.7
Segment
Performance (excludes ACAP)
Revenue
$
3,490.0
$
3,899.7
$
3,943.4
$
6,872.1
$
7,843.1
Less: Pass-through revenue
1,811.4
2,192.1
2,124.4
3,600.9
4,316.5
Net service revenue
$
1,678.6
$
1,707.6
$
1,819.0
$
3,271.2
$
3,526.6
Consolidated
Revenue
$
3,490.1
$
3,899.9
$
3,943.9
$
6,872.5
$
7,843.8
Less: Pass-through revenue
1,811.4
2,192.1
2,124.4
3,600.9
4,316.5
Net service revenue
$
1,678.7
$
1,707.8
$
1,819.5
$
3,271.6
$
3,527.3
Reconciliation of
Total Debt to Net Debt
Balances at:
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Short-term debt
$
4.7
$
3.2
$
2.9
Current portion of long-term debt
52.3
88.4
88.6
Long-term debt, excluding unamortized debt
issuance costs
2,169.1
2,123.4
2,114.4
Total debt
2,226.1
2,215.0
2,205.9
Less: Total cash and cash equivalents
1,073.5
1,192.3
1,185.8
Net debt
$
1,152.6
$
1,022.7
$
1,020.1
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash
Flow
Three Months Ended
Six Months Ended
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Mar 31, 2023
Mar 31, 2024
Net cash provided by operating
activities
$
11.5
$
143.1
$
94.3
$
131.5
$
237.4
Capital expenditures, net
(32.3)
(56.2)
(20.3)
(68.6)
(76.5)
Free cash flow
$
(20.8)
$
86.9
$
74.0
$
62.9
$
160.9
AECOM
Regulation G
Information
(in millions, except per share
data)
Three Months Ended
Six Months Ended
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Mar 31, 2023
Mar 31, 2024
Reconciliation of
Income from Operations to Adjusted Income from
Operations
to Adjusted
EBITDA with Noncontrolling Interests (NCI) to Adjusted
EBITDA
Income from operations
$
197.5
$
163.1
$
200.5
$
349.2
$
363.6
Noncore AECOM Capital loss (income)
5.6
39.1
(0.6)
2.4
38.5
Restructuring costs
3.9
16.2
35.5
41.4
51.7
Amortization of intangible assets
4.6
4.6
4.7
9.3
9.3
Adjusted income from operations
$
211.6
$
223.0
$
240.1
$
402.3
$
463.1
Other income
2.5
2.6
2.5
4.5
5.1
Depreciation
38.4
37.5
38.3
76.1
75.8
Adjusted EBITDA with NCI
$
252.5
$
263.1
$
280.9
$
482.9
$
544.0
Net income attributable to NCI from
continuing operations excluding interest income included in NCI
(8.1)
(11.7)
(12.7)
(17.7)
(24.4)
Amortization of intangible assets included
in NCI
(0.1)
(0.2)
-
(0.3)
(0.2)
Adjusted EBITDA
$
244.3
$
251.2
$
268.2
$
464.9
$
519.4
Reconciliation of
Income from Continuing Operations Before Taxes to Adjusted Income
from Continuing Operations Before Taxes
Income from continuing operations before
taxes
$
167.4
$
136.5
$
170.8
$
290.3
$
307.3
Noncore AECOM Capital loss (income)
5.6
39.1
(0.6)
2.4
38.5
Restructuring costs
3.9
16.2
35.5
41.4
51.7
Amortization of intangible assets
4.6
4.6
4.7
9.3
9.3
Financing charges in interest expense
1.2
1.3
1.2
2.4
2.5
Adjusted income from continuing operations
before taxes
$
182.7
$
197.7
$
211.6
$
345.8
$
409.3
Reconciliation of
Income Taxes for Continuing Operations to Adjusted Income Taxes for
Continuing Operations
Income tax expense for continuing
operations
$
41.1
$
26.6
$
45.4
$
66.9
$
72.0
Tax effect of the above adjustments(1)
4.3
14.0
10.4
13.7
24.4
Valuation allowances and other tax only
items
0.6
-
-
0.6
-
Adjusted income tax expense for continuing
operations
$
46.0
$
40.6
$
55.8
$
81.2
$
96.4
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
$
(8.1)
$
(13.1)
$
(14.1)
$
(17.7)
$
(27.2)
Amortization of intangible assets included
in NCI
(0.1)
(0.2)
-
(0.3)
(0.2)
Adjusted net income attributable to
noncontrolling interests from continuing operations
$
(8.2)
$
(13.3)
$
(14.1)
$
(18.0)
$
(27.4)
Reconciliation of
Net Income Attributable to AECOM from Continuing Operations to
Adjusted Net Income Attributable to AECOM from Continuing
Operations
Net income attributable to AECOM from
continuing operations
$
118.2
$
96.8
$
111.3
$
205.7
$
208.1
Noncore AECOM Capital loss (income), net
of NCI
5.6
39.1
(0.6)
2.4
38.5
Restructuring costs
3.9
16.2
35.5
41.4
51.7
Amortization of intangible assets
4.6
4.6
4.7
9.3
9.3
Financing charges in interest expense
1.2
1.3
1.2
2.4
2.5
Tax effect of the above adjustments(1)
(4.3)
(14.0)
(10.4)
(13.7)
(24.4)
Valuation allowances and other tax only
items
(0.6)
-
-
(0.6)
-
Amortization of intangible assets included
in NCI
(0.1)
(0.2)
-
(0.3)
(0.2)
Adjusted net income attributable to AECOM
from continuing operations
$
128.5
$
143.8
$
141.7
$
246.6
$
285.5
______________________________
(1) Adjusts the income taxes during the
period to exclude the impact on our effective tax rate of the
pre-tax adjustments shown above
AECOM
Regulation G
Information
(in millions, except per share
data)
Three Months Ended
Six Months Ended
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Mar 31, 2023
Mar 31, 2024
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 income attributable to AECOM from
continuing operations per diluted share
$
0.84
$
0.71
$
0.81
$
1.46
$
1.52
Per diluted share adjustments:
Noncore AECOM Capital loss, net of NCI
0.04
0.29
-
0.02
0.28
Restructuring costs
0.03
0.12
0.26
0.29
0.38
Amortization of intangible assets
0.03
0.03
0.03
0.07
0.07
Financing charges in interest expense
0.01
0.01
0.01
0.02
0.02
Tax effect of the above adjustments(1)
(0.03)
(0.11)
(0.07)
(0.11)
(0.18)
Adjusted net income attributable to AECOM
from continuing operations per diluted share
$
0.92
$
1.05
$
1.04
$
1.75
$
2.09
Weighted average shares outstanding –
basic
138.9
135.9
136.0
138.8
136.0
Weighted average shares outstanding –
diluted
140.3
137.1
136.7
140.5
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 income attributable to AECOM from
continuing operations
$
118.2
$
96.8
$
111.3
$
205.7
$
208.1
Income tax expense
41.1
26.6
45.4
66.9
72.0
Depreciation and amortization
44.0
43.1
44.2
87.4
87.3
Interest income, net of NCI
(9.8)
(10.7)
(14.1)
(15.7)
(24.8)
Interest expense
42.4
41.3
47.7
79.1
89.0
Amortized bank fees included in interest
expense
(1.2)
(1.2)
(1.2)
(2.4)
(2.4)
Noncore AECOM Capital (income) loss, net
of NCI
5.6
39.1
(0.6)
2.4
38.5
Restructuring costs
4.0
16.2
35.5
41.5
51.7
Adjusted EBITDA
$
244.3
$
251.2
$
268.2
$
464.9
$
519.4
Reconciliation of
Segment Income from Operations to Adjusted Segment Income from
Operations
Americas Segment:
Segment Income from operations
$
178.2
$
174.6
$
189.2
$
342.0
$
363.8
Amortization of intangible assets
4.3
4.3
4.3
8.7
8.6
Adjusted segment income from
operations
$
182.5
$
178.9
$
193.5
$
350.7
$
372.4
International Segment:
Segment Income from operations
$
60.0
$
77.1
$
81.2
$
115.1
$
158.3
Amortization of intangible assets
0.3
0.3
0.4
0.6
0.7
Adjusted segment income from
operations
$
60.3
$
77.4
$
81.6
$
115.7
$
159.0
Segment Performance (excludes ACAP
& G&A):
Segment Income from operations
$
238.2
$
251.7
$
270.4
$
457.1
$
522.1
Amortization of intangible assets
4.6
4.6
4.7
9.3
9.3
Adjusted segment income from
operations
$
242.8
$
256.3
$
275.1
$
466.4
$
531.4
AECOM
Regulation G Information
FY2024 GAAP EPS Guidance based on
Adjusted EPS Guidance
(all figures approximate)
Fiscal Year End 2024
GAAP EPS Guidance
$3.63 to $3.95
Adjusted EPS excludes:
Amortization of intangible assets
$0.13
Amortization of deferred financing fees
$0.04
Noncore AECOM Capital
$0.28
Restructuring expenses
$0.51 to $0.36
Tax effect of the above items
($0.24) to ($0.21)
Adjusted EPS Guidance
$4.35 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
$558 to $589
Net income attributable to noncontrolling
interest from continuing operations
($60) to ($50)
Net income attributable to AECOM from
continuing operations
$498 to $539
Adjusted net income attributable to AECOM
from continuing operations excludes:
Amortization of intangible assets
$18
Amortization of deferred financing
fees
$5
Noncore AECOM Capital
$39
Restructuring expenses
$70 to $50
Tax effect of the above items
($33) to ($28)
Adjusted net income attributable to AECOM
from continuing operations
$597 to $623
Adjusted EBITDA excludes:
Depreciation
$152
Adjusted interest expense, net
$120
Tax expense, including tax effect of above
items
$201 to $210
Adjusted EBITDA Guidance
$1,070 to $1,105
FY2024 GAAP Interest Expense Guidance
based on Adjusted Interest Expense Guidance
(millions, all figures approximate)
Fiscal Year End 2024
GAAP interest expense guidance
$170
Finance charges in interest expense
($5)
Interest income, net of NCI
($45)
Adjusted net interest expense guidance
$120
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
$168 to $182
Tax effect of adjusting items
$33 to $28
Adjusted income tax expense guidance
$201 to $210
FY2024 GAAP Income from Operations as a %
of Revenue Guidance based onSegment Adjusted Operating Income as a
% of Net Service Revenue Guidance
(all figures approximate)
Fiscal Year End 2024
Income from operations as a % of
revenue
5.9%
Pass-through revenues
8.3%
Amortization of intangible assets
0.1%
Corporate net expense
0.9%
Restructuring expenses*
0.4%
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506176932/en/
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
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