AECOM reports second-quarter fiscal year 2012 financial results

  AECOM reports second-quarter fiscal year 2012 financial results

                       Reports backlog of $16.0 billion

  *Revenue for the second quarter of $2.0 billion.
  *Revenue, net of other direct costs, for the second quarter of $1.3
    billion.
  *Second-quarter diluted earnings per share of 43 cents.
  *Net income attributable to AECOM for the second quarter of $49 million.
  *Total backlog at March 31, 2012, of $16.0 billion.
  *FY12 EPS guidance range of $2.30-$2.45.

Business Wire

LOS ANGELES -- May 03, 2012

AECOM Technology Corporation (NYSE: ACM), a leading provider of professional
technical and management support services for public and private sector
clients in more than 130 countries around the world, announced today its
financial results for the second quarter of fiscal year 2012.

Second-quarter revenue was $2.0 billion, a 4% increase from the second quarter
of fiscal year 2011. AECOM’s gross revenue includes a significant amount of
pass-through costs and, therefore, the company believes that revenue, net of
other direct costs, which is a non-GAAP measure, also provides a valuable
perspective on its business results. Second-quarter revenue, net of other
direct costs, was $1.3 billion.

AECOM reported net income attributable to AECOM of $49 million and diluted
earnings per share (EPS) of 43 cents for the second quarter. This represents a
decrease of 15% from net income of $58 million and a decrease of 12% from
diluted earnings per share of 49 cents for the same period last year.
Operating income for the second quarter decreased 16% from last year to $73
million.

For the first six months of fiscal year 2012, AECOM reported net income
attributable to AECOM of $97 million and diluted EPS of 85 cents, a decrease
of 15% and 12%, respectively, compared to the same period last year. Operating
income for the first six months of fiscal 2012 decreased 16% year over year to
$150 million. For the first six months of fiscal year 2012, the company's
revenue, net of other direct costs, increased 1% to $2.5 billion, while
revenue was $4.0 billion — 4% higher than the same period last year.

“During the quarter, we saw strength in our Professional Technical Services
segment driven by accelerated growth in key end markets and regions, including
emerging and natural resources as well as Asia. This growth was enabled by
investments that we have made to enhance our capabilities across AECOM,” said
John M. Dionisio, AECOM chairman and chief executive officer. “Unfortunately,
this strength was overshadowed by challenges in our Management Support
Services segment.”

As a result of these factors, AECOM is adjusting its full-year EPS guidance to
$2.30 to $2.45.

New Wins and Backlog

“Our new wins accelerated sequentially, topping $2.4 billion, while backlog
also was up sequentially to $16 billion — a 4% increase year over year. These
metrics demonstrate the underlying strength of our business as clients
increasingly turn to AECOM for our integrated service platform and global
expertise,” added Michael S. Burke, AECOM president. “This demand, coupled
with a broad-based improvement in profitability during the second half, will
allow us to achieve our target of generating free cash flow roughly equal to
net income this year.”

Business Segments

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 public sector clients worldwide.

For the second quarter of fiscal year 2012, the PTS segment reported revenue
of $1.8 billion and revenue, net of other direct costs, of $1.2 billion,
compared to revenue of $1.6 billion and revenue, net of other direct costs, of
$1.1 billion in the same period last year. This represents a 9% increase in
revenue and a 2% increase in revenue, net of other direct costs. PTS segment
operating income was $91 million compared to $92 million last year.

Management Support Services

The MSS segment provides facilities management and maintenance, training,
logistics, consulting, technical assistance and systems integration services,
primarily for agencies of the U.S. government.

For the second quarter of fiscal year 2012, the MSS segment reported revenue
of $209.8 million and revenue, net of other direct costs, of $126.4 million,
compared to revenue of $290.8 million, and revenue, net of other direct costs,
of $148.6 million for the same period during fiscal year 2011. This represents
a 28% decrease in revenue and a 15% decrease in revenue, net of other direct
costs. In addition, the MSS segment reported operating income of $2 million
compared to $19 million for the same period during fiscal year 2011.

Balance Sheet and Cash Flow

As of March 31, 2012, AECOM had $466 million of total cash and cash
equivalents, $1.3 billion of debt and $1.05 billion in committed bank
facilities with $807 million in unused capacity. Cash flow from operations
totaled $11 million in the quarter.

AECOM is hosting a conference call today at 10 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 1-866-831-6272 or 1-617-213-8859 and entering
the passcode 45169144. Interested parties also can listen to the conference
call and view accompanying slides via webcast at www.aecom.com. The webcast
will be available for replay following the call.

About AECOM

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 more than 130 countries and had revenue of
$8.2 billion during the 12 months ended March 31, 2012. 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.

                                                                                               
AECOM Technology Corporation

Consolidated Statement of Income

(unaudited - in thousands, except per share data)
                                                                      
                       Three Months Ended                      Six Months Ended
                       March 31,           March 31,           March 31,           March 31,
                       2012                2011                2012                2011
                                                                                               
Revenue                $ 2,010,951         $ 1,936,421         $ 4,040,131         $ 3,872,604
Other direct            721,451            643,022            1,519,782          1,365,428
costs
Revenue, net of
other direct             1,289,500           1,293,399           2,520,349           2,507,176
costs (non-GAAP)
Cost of revenue,
net of other            1,213,383          1,193,664          2,353,886          2,302,106
direct costs
Gross profit             76,117              99,735              166,463             205,070
                                                                                               
Equity in
earnings of              16,898              11,330              25,860              19,427
joint ventures
General and
administrative          19,857             23,608             42,468             46,870
expenses
Income from              73,158              87,457              149,855             177,627
operations
                                                                                               
Other income             4,471               1,456               6,390               3,744
Interest                (11,204   )        (10,014   )        (21,818   )        (19,886   )
expense, net
Income from
continuing
operations               66,425              78,899              134,427             161,485
before
income tax
expense
                                                                                               
Income tax              16,769             19,239             36,347             39,742
expense
                                                                                               
Net income               49,656              59,660              98,080              121,743
                                                                                               
Noncontrolling
interest in
income of                (662      )         (1,945    )         (1,155    )         (7,160    )
consolidated
subsidiaries,
net of tax
                                                                                
Net income
attributable to        $ 48,994            $ 57,715            $ 96,925            $ 114,583
AECOM
                                                                                               
Net income
allocation:
Preferred stock        $ –                 $ –                 $ –                 $ 2
dividend
Net income
available for           48,994             57,715             96,925             114,581
common
stockholders
Net income
attributable to        $ 48,994            $ 57,715            $ 96,925            $ 114,583
AECOM
                                                                                               
Net income
attributable to
AECOM per share:
Basic and              $ 0.43              $ 0.49              $ 0.85              $ 0.97
diluted
                                                                                               
Weighted average
shares
outstanding:
Basic                    113,352             117,283             113,659             117,642
Diluted                  114,288             118,278             114,439             118,697
                                                                                               

AECOM Technology Corporation                                              
Balance Sheet and Cash Flow Information
(unaudited - in thousands)
                                               
                                 March 31, 2012       September 30, 2011
Balance Sheet Information:
Cash and cash equivalents        $   465,662          $   456,940
Accounts receivable, net             2,554,224            2,380,181
Working capital                      1,231,222            1,175,620
Working capital, net of              765,560              718,680
cash and cash equivalents
                                                                             
Total debt                           1,260,968            1,162,469
Total assets                         6,013,232            5,789,328
Total AECOM stockholders’            2,433,830            2,339,711
equity
                                                                             
                                                                             
                                 Six Months Ended
                                 March 31, 2012       March 31, 2011
Cash Flow Information:
Net cash provided by (used       $   4,998            $   (146,035    )
in) operating activities*

* March 31, 2011, amount includes deferred compensation plan termination
($90million) and associated excess tax benefits ($58million).

                                                                                            
AECOM TECHNOLOGY CORPORATION
Reportable Segments
($ in thousands)
                                                              
                     Professional        Management
                     Technical           Support           Corporate         Total
                     Services            Services
Three Months
Ended March
31, 2012
Revenue              $ 1,801,145         $ 209,806         $ -               $ 2,010,951
Other direct          638,030           83,421          -               721,451   
costs
Revenue, net
of other               1,163,115           126,385           -                 1,289,500
direct costs
(non-GAAP)
Cost of
revenue, net          1,076,674         136,709         -               1,213,383 
of other
direct costs
Gross profit           86,441              (10,324 )         -                 76,117
Equity in
earnings of            4,556               12,342            -                 16,898
joint ventures
General and
administrative        -                 -               19,857          19,857    
expenses
Income from          $ 90,997           $ 2,018          $ (19,857 )       $ 73,158    
operations
                                                                                               
Gross profit
as a % of              4.8       %         -4.9    %         -                 3.8       %
revenue
Gross profit
as a % of
revenue, net           7.4       %         -8.2    %         -                 5.9       %
of other
direct costs
(non-GAAP)
                                                                                               
Three Months
Ended March
31, 2011
Revenue              $ 1,645,633         $ 290,788         $ -               $ 1,936,421
Other direct          500,877           142,145         -               643,022   
costs
Revenue, net
of other               1,144,756           148,643           -                 1,293,399
direct costs
(non-GAAP)
Cost of
revenue, net          1,056,998         136,666         -               1,193,664 
of other
direct costs
Gross profit           87,758              11,977            -                 99,735
Equity in
earnings of            4,019               7,311             -                 11,330
joint ventures
General and
administrative        -                 -               23,608          23,608    
expenses
Income from          $ 91,777           $ 19,288         $ (23,608 )       $ 87,457    
operations
                                                                                               
Gross profit
as a % of              5.3       %         4.1     %         -                 5.2       %
revenue
Gross profit
as a % of
revenue, net           7.7       %         8.1     %         -                 7.7       %
of other
direct costs
(non-GAAP)

                                                                                                
AECOM TECHNOLOGY CORPORATION
Reportable Segments
($ in thousands)
                                                                 
                     Professional         Management
                     Technical            Support             Corporate         Total
                     Services             Services
Six Months
Ended March
31, 2012
Revenue              $ 3,608,549          $ 431,582           $ -               $ 4,040,131
Other direct          1,344,566          175,216           -               1,519,782  
costs
Revenue, net
of other               2,263,983            256,366             -                 2,520,349
direct costs
(non-GAAP)
Cost of
revenue, net          2,092,781          261,105           -               2,353,886  
of other
direct costs
Gross profit           171,202              (4,739    )         -                 166,463
Equity in
earnings of            7,048                18,812              -                 25,860
joint ventures
General and
administrative        -                  -                 42,468          42,468     
expenses
Income from          $ 178,250           $ 14,073           $ (42,468 )       $ 149,855    
operations
                                                                                                   
Gross profit
as a % of              4.7        %         -1.1      %         -                 4.1        %
revenue
Gross profit
as a % of
revenue, net           7.6        %         -1.8      %         -                 6.6        %
of other
direct costs
(non-GAAP)
                                                                                                   
Contracted           $ 7,409,504          $ 962,125           $ -               $ 8,371,629
backlog
Awarded               6,468,962          1,201,049         -               7,670,011  
backlog
Total backlog        $ 13,878,466        $ 2,163,174        $ -              $ 16,041,640 
                                                                                                   
Six Months
Ended March
31, 2011
Revenue              $ 3,221,404          $ 651,200           $ -               $ 3,872,604
Other direct          991,841            373,587           -               1,365,428  
costs
Revenue, net
of other               2,229,563            277,613             -                 2,507,176
direct costs
(non-GAAP)
Cost of
revenue, net          2,052,271          249,835           -               2,302,106  
of other
direct costs
Gross profit           177,292              27,778              -                 205,070
Equity in
earnings of            6,129                13,298              -                 19,427
joint ventures
General and
administrative        -                  -                 46,870          46,870     
expenses
Income from          $ 183,421           $ 41,076           $ (46,870 )       $ 177,627    
operations
                                                                                                   
Gross profit
as a % of              5.5        %         4.3       %         -                 5.3        %
revenue
Gross profit
as a % of
revenue, net           8.0        %         10.0      %         -                 8.2        %
of other
direct costs
(non-GAAP)
                                                                                                   
Contracted           $ 7,770,349          $ 747,190           $ -               $ 8,517,539
backlog
Awarded               5,189,214          1,647,800         -               6,837,014  
backlog
Total backlog        $ 12,959,563        $ 2,394,990        $ -              $ 15,354,553 

                                                                              
AECOM Technology Corporation
Regulation G Information
($ in millions)
                                                                                 
Reconciliation of Revenue to Revenue, Net of Other Direct Costs
                                                                                 
                Three Months Ended           Six Months Ended
                   March 31,    March 31,       March 31,    March 31,
                   2012            2011            2012            2011
Consolidated
Revenue            $ 2,010.9       $ 1,936.4       $ 4,040.1       $ 3,872.6
Less: Other         721.4          643.0          1,519.8        1,365.4
direct costs
Revenue, net
of other           $ 1,289.5       $ 1,293.4       $ 2,520.3       $ 2,507.2
direct costs
                                                                                 
PTS Segment
Revenue            $ 1,801.1       $ 1,645.6       $ 3,608.5       $ 3,221.4
Less: Other         638.0          500.8          1,344.5        991.8
direct costs
Revenue, net
of other           $ 1,163.1       $ 1,144.8       $ 2,264.0       $ 2,229.6
direct costs
                                                                                 
MSS Segment
Revenue            $ 209.8         $ 290.8         $ 431.6         $ 651.2
Less: Other         83.4           142.2          175.3          373.6
direct costs
Revenue, net
of other           $ 126.4         $ 148.6         $ 256.3         $ 277.6
direct costs

                                                                                                              
Reconciliation of Amounts Provided by Acquired Companies
                Three Months Ended March 31, 2012            Six Months Ended March 31, 2012
                                   Provided        Excluding                       Provided        Excluding
                   Total        by           Effect of       Total        by           Effect of
                                   Acquired        Acquired                        Acquired        Acquired
                                   Companies       Companies                       Companies       Companies
Consolidated
Revenue, net
of other           $ 1,289.5       $   6.4         $ 1,283.1       $ 2,520.3       $   18.6        $ 2,501.7
direct costs

                                                                                                                                   
Reconciliation of EBITDA to Net Income Attributable to AECOM
                     Three Months Ended
                        Mar 31,    Dec 31,    Sep 30,    Jun 30,    Mar 31,    Dec 31,    Sep 30,    Jun 30,
                        2012          2011          2011          2011          2011          2010          2010          2010
                                                                                                                                      
EBITDA                  $ 101.6       $ 103.0       $ 157.8       $ 136.2       $ 114.3       $ 117.1       $ 125.8       $ 105.9
Less: Interest            10.6          10.0          8.9           10.4          10.0          9.9           5.3           1.2
(income)/expense*
Less:
Depreciation and         25.3         25.5         25.1         28.0         27.4         29.8         21.2         17.2
amortization
                                                                                                                                      
Income from
continuing
operations                65.7          67.5          123.8         97.8          76.9          77.4          99.3          87.5
attributable
to AECOM before
income taxes
Less: Income tax         16.7         19.6         36.4         24.0         19.2         20.5         31.5         22.7
expense
                                                                                                                                      
Income from
continuing
operations                49.0          47.9          87.4          73.8          57.7          56.9          67.8          64.8
attributable
to AECOM
Discontinued
operations, net          –            –            –            –            –            –            –            –
of tax
                                                                                                                                      
Net income
attributable to         $ 49.0        $ 47.9        $ 87.4        $ 73.8        $ 57.7        $ 56.9        $ 67.8        $ 64.8
AECOM

                     
                         Fiscal Years Ended September 30,
                         2011       2010         2009       2008
                                                                             
EBITDA                   $ 525.4       $ 417.5         $ 358.5       $ 284.5
Less: Interest           39.2          9.9             10.7          (1.3    )
expense*
Less: Depreciation       110.3         78.9            84.1          62.8
and amortization
                                                                             
Income from
continuing
operations               375.9         328.7           263.7         223.0
attributable
to AECOM before
income taxes
Less: Income tax         100.1         91.7            77.0          76.5
expense
                                                                             
Income from
continuing
operations               275.8         237.0           186.7         146.5
attributable
to AECOM
Discontinued
operations, net of       –             (0.1    )       3.0           0.7
tax
                                                                             
Net income
attributable to          $ 275.8       $ 236.9         $ 189.7       $ 147.2
AECOM

* Excluding related amortization.

NR 12-0501

Contact:

AECOM Technology Corporation
Media:
Paul Gennaro, 212.973.3167
SVP & Chief Communications Officer
Paul.Gennaro@aecom.com
or
Investors:
Paul Cyril, 212.973.2982
SVP, Investor Relations
Paul.Cyril@aecom.com
 
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