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|AECOM reports 62 cents EPS, backlog of $16.0 billion for third quarter of fiscal year 2011|
LOS ANGELES, Aug 04, 2011 (BUSINESS WIRE) --
AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today its financial results for the third quarter of fiscal year 2011, which ended June 30, 2011.
AECOM reported net income from continuing operations of $74 million for the third quarter, or diluted earnings per share (EPS) of 62 cents. These results represent an increase of 14% over net income of $65 million - and an increase of 11% over diluted EPS of 56 cents - for the same period last year. Operating income for the third quarter increased to $110 million, 19% higher than the same period last year.
AECOM's third-quarter revenue, net of other direct costs, increased to $1.3 billion, 24% higher than the same period last year. Organic revenue, net of other direct costs, increased 4% year over year. Third-quarter gross revenue increased to $2.0 billion, 25% higher than the third quarter of fiscal year 2010.
For year-to-date fiscal year 2011, AECOM reported net income from continuing operations of $188 million and operating income of $288 million, an increase of 11% and 19%, respectively, compared to the same period last year. For year-to-date fiscal year 2011, AECOM reported revenue, net of other direct costs, of $3.8 billion and revenue of $5.9 billion, an increase of 24% and 25%, respectively, compared to the same period last year.
"We had a solid third quarter, posting 11% earnings growth, driven by gains in organic and acquisitive net service revenue," said John M. Dionisio, AECOM president and chief executive officer. "We also recorded $2.7 billion in new wins, up from $2.2 billion in the second quarter, and organic backlog increased 18% year over year, the largest increase in over two years.
"Organic growth in the third quarter was led by strong results in Australia, Asia, and the Middle East. AECOM's expanding presence in these high-growth markets, in combination with our integrated platform, position us to capitalize on the full scope of infrastructure opportunities around the world."
In addition to providing consolidated financial results, AECOM reports separate financial information for its two segments: Professional Technical Services (PTS) and Management Support Services (MSS).
Professional Technical Services
The PTS segment delivers planning, consulting, architecture and engineering design, and program and construction management services to institutional, commercial and government clients worldwide.
For the third quarter of fiscal year 2011, the PTS segment reported revenue of $1.8 billion and operating income of $115 million, compared to revenue of $1.3 billion and operating income of $108 million for the same period during fiscal year 2010. This represents a 33% increase in revenue and a 6% increase in operating income year over year. PTS revenue, net of other direct costs, increased 21% year over year to $1.2 billion.
Management Support Services
The MSS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, primarily for agencies of the U.S. government.
For the third quarter of fiscal year 2011, the MSS segment reported gross revenue of $274 million and revenue, net of other direct costs, of $144 million, compared to revenue of $297 million, and revenue, net of other direct costs, of $98 million for the same period during fiscal year 2010. This represents an 8% decrease in revenue contrasted by a 48% increase in revenue, net of other direct costs, highlighting a change in the mix of the business. In addition, the MSS segment reported operating income of $19 million compared to $13 million for the same period during fiscal year 2010, which represents a 48% year-over-year increase.
AECOM announced backlog totaling $16.0 billion at June 30, 2011, a 66% increase year over year. Organically, backlog increased by 18% year over year.
At June 30, 2011, the company had $381 million of total cash and cash equivalents, $1.2 billion of debt and $600 million in committed bank facilities with $293 million in unused capacity. Subsequent to the close of the quarter, the company announced a new 5-year revolving credit facility agreement with total borrowing capacity of $1.05 billion.
"We are pleased to have closed our new revolving credit facility, which substantially increases our borrowing capacity on more favorable terms," said Michael S. Burke, AECOM executive vice president and chief financial officer. "We believe this demonstrates the credit market's confidence in our financial strength and provides us with increased financial flexibility to execute on our growth strategy."
"Improvements in organic growth and a significant increase in new wins and backlog during the third quarter give us confidence in our long-term earnings growth target of 15%," Burke said. "However, continued challenges in our Western European business have led us to evaluate actions to reduce our cost structure, which may negatively impact our earnings by approximately $0.05 in the fourth quarter." As a result, AECOM's EPS outlook for fiscal year 2011 is $2.30-$2.35.
AECOM is hosting a conference call today at 11 a.m. EDT, during which management will make a brief presentation focusing on the company's results, strategies and operating trends. Those wishing to dial in to the call via telephone can do so by dialing 1-866-271-6130 or 1-617-213-8894 and entering the passcode 36315172.
AECOM is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world's built, natural, and social environments. A Fortune 500 company, AECOM serves clients in approximately 125 countries and had revenue of $7.7 billion during the 12 months ended June 30, 2011. More information on AECOM and its services can be found at www.aecom.com.
Forward-Looking Statements: All statements in this press release other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings or other financial items; any statements of the plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements.
Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in forward-looking statements include: uncertainties related to funding, audits, modifications and termination of long-term government contracts; losses under fixed-price contracts; limited control over operations run through our joint venture entities; misconduct by our employees or consultants or our failure to comply with laws or regulations; failure to successfully execute our merger and acquisition strategy; the need to retain and recruit key technical and management personnel; and unexpected adjustments and cancellations related to our backlog. Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in our reports filed with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statement.
* June 30, 2011 amount includes deferred compensation plan termination ($90) million and associated excess tax benefits ($58) million.
SOURCE: AECOM Technology Corporation
AECOM Technology Corporation