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AECOM reports first-quarter fiscal year 2013 results and announces new $500-million share repurchase authorization

  AECOM reports first-quarter fiscal year 2013 results and announces new
  $500-million share repurchase authorization

Quarter Highlights

  *Progress on working capital initiatives contributes to $67 million in
    operating cash flow and $54 million in free cash flow.
  *Record backlog of $17.1 billion driven by strength in North America
    construction; book to burn of 1.3x.
  *Key markets of transportation and energy contribute to $2 billion in
    revenue.
  *Company invests $173 million to repurchase 8 million shares.
  *Reported EPS of $0.36.
  *Full-year target diluted EPS range of $2.40 to $2.50 with confidence in
    high end of range.
  *Board authorizes $500 million for additional share repurchase.

Business Wire

LOS ANGELES -- February 5, 2013

AECOM Technology Corporation (NYSE: ACM) reported first-quarter revenue of
$2.0 billion, and revenue, net of other direct costs^1, of $1.2 billion.
Operating income decreased 19.3%* largely driven by previously discussed
actions taken to better align the cost structure of its Australia business in
light of the country’s slowdown in mining. These actions are factored into the
company’s full-year EPS guidance. Reported net income attributable to AECOM in
the quarter was $38 million, and diluted earnings per share were $0.36 for the
first quarter.

                       
                       First Quarter
($ in millions,                                   YOY %
                        Q1 FY12   Q1 FY13   Change
except EPS)
Gross Revenue           $2,029    $2,017    (0.6%)
Net Service Revenue^1   $1,231    $1,245    1.2%
Operating Income        $77       $62       (19.3%)
Net Income^2            $48       $38       (20.5%)
Earnings per Share^2    $0.42     $0.36     (14.3%)
Operating Cash Flow     ($6)      $67       NM
Free Cash Flow^3        ($25)     $54       NM
                                           

*All comparisons are year over year unless noted otherwise.

“We drove solid net service revenue improvement in Asia, Europe, management
support services and in our civil infrastructure markets,” said John M.
Dionisio, AECOM chairman and chief executive officer. “We booked $2.7 billion
in new wins and increased our backlog by 8% to $17.1 billion. As expected, our
results were negatively impacted by actions we took in Australia to align our
business against the backdrop of a country-wide slowdown in mining. Excluding
Australia, operating income margins in our professional technical services
segment were up, reflecting progress against our longer-term margin target
through cost-containment initiatives and improved execution. These results
demonstrate that our diversified growth model, capital allocation strategy and
performance culture are delivering as we work to further improve growth,
profitability and liquidity.”

“Our intense focus on improved returns and cash conversion enabled us to
generate $54 million in free cash flow for the quarter,” said AECOM President
Michael S. Burke. “As a result of our liquidity and the effectiveness of our
capital allocation strategy, we invested $173 million during the quarter to
repurchase 8 million shares. We also completed three niche acquisitions that
strengthen our technical and end market expertise while also expanding our
global footprint.” Burke continued: “Confidence in our long-term outlook
supports our board’s decision to approve an additional $500 million for share
repurchase and also to target returning at least 50% of our free cash flow
over the next two years to our shareholders. Since the inception of our
repurchase program in 2011, we have invested more than $435 million to
repurchase 20 million shares, reducing our share count by 17%.”

New Wins and Backlog

During the quarter, new wins reached $2.7 billion, driven by strength in the
company’s facilities and transportation end markets, particularly in North
America. Book to burn^4 was 1.3x for the quarter, while total backlog at Dec.
31, 2012, was $17.1 billion. These metrics demonstrate the underlying strength
of AECOM’s business as clients increasingly turn to the company for its
integrated service platform and global expertise.

Cash Flow

Cash flow from operations for the quarter was $67 million. Free cash flow,
which includes capital expenditures of $13 million, totaled $54 million. The
net contribution to free cash flow in the quarter from the sale of receivables
was $51 million. Days sales outstanding (DSOs) improved by 1.6 days to 94 in
the quarter. The company reconfirmed that it is well positioned to meet its
fiscal 2013 target of generating free cash flow equal to or in excess of its
net income.

Balance Sheet

As of Dec. 31, 2012, AECOM had $591 million of total cash and cash
equivalents, $1.2 billion of debt and $1.05 billion in committed bank
facilities with $855 million in unused capacity.

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.

First-quarter revenue of $1.77 billion declined 2.0%, and revenue, net of
other direct costs, declined by 0.6% to $1.09billion as double-digit growth
in Asia was offset by the challenging macroeconomic environment in Australia
and the U.S. Profitability declined by 14.7% as the business absorbed costs to
right-size the Australia mining practice. Excluding Australia, operating
profit and margins improved, reflecting the benefits of operational
improvement initiatives and growth. Through the balance of the year, the
company expects significant improvement in profitability in PTS as Australia
completes its right-sizing actions and benefits from improved utilization.

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.

Revenue increased 10.9% to $246million, and revenue, net of other direct
costs, increased 16.4% to $151million driven by growth in Asia and the Middle
East. Operating income declined 20.2% to $9.6million, reflecting a lower
contribution from unconsolidated joint ventures in the quarter. The company
expects full year operating income, on an adjusted basis ^5, to double versus
last year, which indicates a strong profit trajectory for the remainder of the
year.

Fiscal 2013 Outlook

AECOM’s target EPS range for fiscal 2013 is $2.40 to $2.50, and the company
now has increased confidence in the high end of the range. The impact of a
lower full-year diluted share count and effective tax rate gives the company
increased confidence in the high end of the range. EPS guidance is based on a
full-year diluted share count of 103 million shares, which reflects the impact
of shares repurchased through the end of the first fiscal quarter. The company
now expects its full-year effective tax rate to be 27 percent, reflecting the
retroactive adoption of research and development tax credits approved by the
U.S. Congress in January 2013.

Through the year, the company expects sequential growth in profit margins in
PTS supported by improved profitability in Australia as well as an improved
profit trajectory in MSS.

Five-Year Free Cash Flow Target

AECOM confirms its five-year free cash flow target with a range of $1.3
billion to $1.8 billion. This target is based on a range of assumptions
related to growth, profitability and working capital requirements.

AECOM is hosting a conference call today at 11 a.m. EST, during which
management will make a brief presentation focusing on the company's results,
strategies and operating trends. Interested parties 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.

^1AECOM’s revenue includes a significant amount of pass-through costs and,
therefore, the company believes that revenue, net of other direct costs (net
service revenue), which is a non-GAAP measure, also provides a meaningful
perspective on its business results. See the accompanying reconciliation for a
reconciliation of revenue, net of other direct costs, to revenue, the closest
comparable GAAP measure.
^2Attributable to AECOM.
^3Free cash flow is defined as cash flow from operations less capital
expenditures and is a non-GAAP measure. See the accompanying reconciliation
for a reconciliation of free cash flow from operations, the closest comparable
GAAP measure.
^4 Book to burn is defined as the amount of new business divided by gross
revenue recognized during the period.
^5 Adjusted operating income excludes the impact of the goodwill impairment
charge taken in fiscal 2012.

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 140 countries and had revenue of
$8.2billion during the 12 months ended Dec.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,
revenue, profit margins, cash flows, share count 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 global economic conditions and 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 failure 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.

This press release contains financial information calculated other than in
accordance with U.S. generally accepted accounting principles (“GAAP”). In
particular, the company believes that non-GAAP financial measures such as
revenue, net of other direct costs, backlog, and free cash flow also provide a
meaningful perspective on its business results as the company utilizes this
information to evaluate and manage the business. This 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 the company’s
results as reported under GAAP, nor is it necessarily comparable to non-GAAP
performance measures that may be presented by other companies.


AECOM Technology Corporation
Consolidated Statement of Income
(unaudited - in thousands, except per share data)

                            Three Months Ended
                              December 31, 2012   December 31,    % Change
                                                    2011
                                                                      
Revenue                       $    2,017,272        $  2,029,180      -1%
Other direct costs                772,254            798,331        -3%
Revenue, net of other              1,245,018           1,230,849      1%
direct costs (non-GAAP)
Cost of revenue, net of           1,166,900          1,140,503      2%
other direct costs
Gross profit                       78,118              90,346         -14%
                                                                      
Equity in earnings of              5,915               8,962          -34%
joint ventures
General and                       (22,102)           (22,611)       -2%
administrative expenses
Income from operations             61,931              76,697         -19%
                                                                      
Other income                       301                 1,919          -84%
Interest expense, net             (10,551)           (10,614)       -1%
Income before income tax           51,681              68,002         -24%
expense
                                                                      
Income tax expense                12,703             19,578         -35%
                                                                      
Net income                         38,978              48,424         -20%
                                                                      
Non-controlling interest
in income of consolidated          (869)               (493)          76%
subsidiaries, net of tax
                                                   
Net income attributable       $    38,109           $  47,931         -20%
to AECOM
                                                                      
Net income attributable
to AECOM per share:
Basic and diluted             $    0.36             $  0.42           -14%
                                                                      
Weighted average shares
outstanding:
Basic                              104,759             113,965
Diluted                            105,538             114,591
                                                                      


AECOM Technology Corporation
Balance Sheet and Cash Flow Information
(unaudited - in thousands)
                                                       
                                      December 31, 2012     September 30, 2012
Balance Sheet Information:
Cash and cash equivalents             $    591,296          $     593,776
Accounts receivable – net                  2,481,834              2,395,881
Working capital                            1,025,408              1,068,891
Working capital, net of cash and           434,112                475,115
cash equivalents
Total debt                                 1,233,238              1,069,732
Total assets                               5,808,025              5,664,568
Total AECOM stockholders’ equity           2,049,468              2,169,464
                                                            

                                    
                                       Three Months Ended
                                       December 31, 2012   December 31, 2011
Cash Flow Information:
Net cash provided by / (used in)       $     67,089          $     (6,426)
operating activities
Capital expenditures                        (12,925)             (18,284)
Free cash flow                         $     54,164          $     (24,710)
                                                             


AECOM Technology Corporation

Reportable Segments
(unaudited - in thousands)
                                                        
                   Professional     Management
                   Technical        Support         Corporate      Total
                   Services         Services
Three Months
Ended December
31, 2012
Revenue            $ 1,771,221      $ 246,051       $ -            $ 2,017,272
Other direct        677,455         94,799         -             772,254
costs
Revenue, net
of other             1,093,766        151,252         -              1,245,018
direct costs
(non-GAAP)
Cost of
revenue, net        1,024,490       142,410        -             1,166,900
of other
direct costs
Gross profit         69,276           8,842           -              78,118
Equity in
earnings of          5,138            777             -              5,915
joint ventures
General and
administrative      -               -              (22,102)      (22,102)
expenses
Income from        $ 74,414         $ 9,619         $ (22,102)     $ 61,931
operations
                                                                   
Gross profit
as a % of            3.9%             3.6%            -              3.9%
revenue
Gross profit
as a % of
revenue, net         6.3%             5.8%            -              6.3%
of other
direct costs
(non-GAAP)
                                                                   
Contracted         $ 8,301,651      $ 726,072       $ -            $ 9,027,723
backlog
Awarded             6,974,685       1,084,725      -             8,059,410
backlog
Total backlog      $ 15,276,336     $ 1,810,797     $ -            $ 17,087,133
                                                                   
                                                                   
Three Months
Ended December
31, 2011
Revenue            $ 1,807,404      $ 221,776       $ -            $ 2,029,180
Other direct        706,536         91,795         -             798,331
costs
Revenue, net
of other             1,100,868        129,981         -              1,230,849
direct costs
(non-GAAP)
Cost of
revenue, net        1,016,107       124,396        -             1,140,503
of other
direct costs
Gross profit         84,761           5,585           -              90,346
Equity in
earnings of          2,492            6,470           -              8,962
joint ventures
General and
administrative      -               -              (22,611)      (22,611)
expenses
Income from        $ 87,253         $ 12,055        $ (22,611)     $ 76,697
operations
                                                                   
Gross profit
as a % of            4.7%             2.5%            -              4.5%
revenue
Gross profit
as a % of
revenue, net         7.7%             4.3%            -              7.3%
of other
direct costs
(non-GAAP)
                                                                   
Contracted         $ 7,664,175      $ 888,615       $ -            $ 8,552,790
backlog
Awarded             6,078,771       1,194,993      -             7,273,764
backlog
Total backlog      $ 13,742,946     $ 2,083,608     $ -            $ 15,826,554
                                                                   


AECOM Technology Corporation

Regulation G Information

($ in millions)

Reconciliation of Revenue to Revenue, Net of Other Direct Costs
                              Three Months Ended
                                Dec 31, 2012   Sep 30, 2012   Dec 31, 2011
Consolidated
Revenue                         $   2,017.3      $   2,082.9      $   2,029.2
Less: Other direct costs           772.3           742.8           798.4
Revenue, net of other           $   1,245.0      $   1,340.1      $   1,230.8
direct costs
                                                                  
PTS Segment
Revenue                         $   1,771.2      $   1,821.8      $   1,807.4
Less: Other direct costs           677.4           643.1           706.5
Revenue, net of other           $   1,093.8      $   1,178.7      $   1,100.9
direct costs
                                                                  
MSS Segment
Revenue                         $   246.1        $   261.1        $   221.8
Less: Other direct costs           94.9            99.7            91.9
Revenue, net of other           $   151.2        $   161.4        $   129.9
direct costs
                                                                  


Reconciliation of Income from Operations before Goodwill Impairment to Income
from Operations
                                               Three Months Ended
                                               Sep 30, 2012
Consolidated
Income from operations before goodwill         $             136.9
impairment
Goodwill impairment                                         (336.0)
Income from Operations                         $             (199.1)
                                               


Reconciliation of Net Income and Diluted EPS Before Goodwill Impairment to Net
Income and Diluted EPS
                                  Three Months Ended
                                    Sep 30, 2012
                                    Net Income ^(1)          Diluted EPS
Amount before goodwill              $       92.3              $     0.83
impairment
Goodwill impairment, net                   (317.2)                (2.88)
of tax
Amount, including                   $       (224.9)           $     (2.05)
goodwill impairment
^(1) Attributable to
AECOM
                                                              

Reconciliation of Amounts Provided by Acquired Companies
                            Three Months Ended Dec 31, 2012
                                              Provided by     Excluding Effect
                              Total         Acquired      of Acquired
                                              Companies       Companies
                                                              
Revenue, net of other
direct costs –                $  1,245.0     $    21.3       $     1,223.7
Consolidated
Revenue, net of other
direct costs – PTS            $   1,093.8     $    21.3       $     1,072.5
Segment


AECOM Technology Corporation

Regulation G Information

($ in millions)

Reconciliation of EBITDA Before Goodwill Impairment to Net Income Attributable to AECOM
               Three Months Ended
                 Dec        Sep 30,       Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Mar 31,
                 31,      2012        2012      2012      2011      2011      2011      2011
                 2012
EBITDA
before           $ 84.7     $ 163.9       $ 129.0     $ 101.6     $ 103.0     $ 157.8     $ 136.2     $ 114.3
goodwill
impairment
Less:
Goodwill          -         336.0        -          -          -          -          -          -
impairment
                                                                                                      
EBITDA             84.7       (172.1)       129.0       101.6       103.0       157.8       136.2       114.3
Less:
Interest           10.0       10.0          12.1        10.6        10.0        8.9         10.4        10.0
expense*
Less:
Depreciation      23.9      26.1         26.1       25.3       25.5       25.1       28.0       27.4
and
amortization
Income
(loss)
attributable
to AECOM           50.8       (208.2)       90.8        65.7        67.5        123.8       97.8        76.9
before
income tax
expense
Less: Income      12.7      16.7         21.4       16.7       19.6       36.4       24.0       19.2
tax expense
Net income
(loss)           $ 38.1     $ (224.9)     $ 69.4      $ 49.0      $ 47.9      $ 87.4      $ 73.8      $ 57.7
attributable
to AECOM
* Excluding
related
amortization
                                                                                                      


Reconciliation of Total Debt to Net Debt
                              Balances at
                                Dec 31, 2012   Sep 30, 2012   Dec 31, 2011
Short-term debt                 $   18.4         $   1.6          $   13.0
Current portion of                  193.1            161.0            10.8
long-term debt
Long-term debt                     1,021.8         907.1           1,217.7
Total debt                          1,233.3          1,069.7          1,241.5
Less: Total cash and cash          591.3           593.8           507.5
equivalents
Net Debt                        $   642.0        $   475.9        $   734.0
                                                                  


Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
                Three Months Ended
                  Dec 31,    Sep 30,    Jun 30,    Mar 31,    Dec 31,
                  2012         2012         2012         2012         2011
Net cash
provided by /
(used in)         $ 67.1       $ 226.4      $ 202.0      $ 11.4       $ (6.4)
operating
activities
Capital            (12.9)      (15.1)      (15.6)      (13.9)      (18.3)
expenditures
Free Cash         $ 54.2       $ 211.3      $ 186.4      $ (2.5)      $ (24.7)
Flow
                                                                      

                                                 
                                                    Fiscal Years Ended Sep 30,
                                                    2012           2011
Net cash provided by operating activities           $  433.4         $  132.0
Capital expenditures                                   (62.9)           (78.0)
Settlement of deferred compensation plan               -                90.0
liability
Excess tax benefit from share-based payment                            
(associated
with DCP termination)                                 -               58.0
Free Cash Flow                                      $  370.5         $  202.0
                                                                     

NR 13-0202

Contact:

For AECOM Technology Corporation
Media:
Paul Gennaro, 212-973-3167
SVP & Chief Communications Officer
Paul.Gennaro@aecom.com
or
Investors:
Lynn Antipas Tyson, 646-432-8428
SVP, Investor Relations
Lynn.Tyson@aecom.com
 
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