LOS ANGELES — (BUSINESS WIRE) — February 6, 2018 — AECOM (NYSE: ACM), a premier, fully integrated global infrastructure firm, today reported first quarter revenue of $4.9 billion. Net income and diluted earnings per share were $111 million and $0.69 in the first quarter, respectively. On an adjusted basis, diluted earnings per share1 was $0.57.
| ($ in millions, except EPS) | As Reported | Adjusted (Non-GAAP) | As Reported YoY % Change | Adjusted YoY % Change | ||||||||
| Revenue | $4,911 | - | 13% | - | ||||||||
| Operating Income | $131 | $1581 | (9%) | (16%) | ||||||||
| Net Income | $111 | $921 | 136% | 9% | ||||||||
| EPS (Fully Diluted) | $0.69 | $0.571 | 130% | 8% | ||||||||
| Operating Cash Flow | $52 | - | (32%) | - | ||||||||
| Free Cash Flow | - | $342 | - | (40%) | ||||||||
| Backlog | $48,790 | - | 11%3 | - | ||||||||
First Quarter 2018 Accomplishments:
- Organic4 revenue increased by 8% to a new all-time high and included growth in each of the DCS, CS and MS segments.
- Wins of $6.1 billion included book-to-burn5 ratios greater than 1.0 in all three segments, led by 1.5 and 1.2 in the higher-margin MS and DCS segments, respectively.
- Total backlog reached a new record of $49 billion, which is an 11%3 year-over-year increase.
- Adjusted EBITDA1 as reported would have increased by 18% after also excluding $22 million of restructuring costs in the quarter and a $35 million benefit from a legal settlement in the year-ago period.
- Reiterating fiscal 2018 adjusted EBITDA1 guidance of $910 million and adjusted EPS1 guidance of between $2.50 and $2.90.
- The Company remains on track to achieve 2.5x net debt-to-EBITDA6 by the end of fiscal year 2018 and thereafter intends to return substantially all free cash flow to investors under a $1 billion stock repurchase authorization.
“We are capitalizing on market momentum and the benefits of our investments in growth, as evidenced by continued strong organic revenue performance, more than $6 billion of wins for the third time in our history, and 11% backlog growth to a new record of $49 billion, led by our higher-margin MS and DCS segments,” said Michael S. Burke, AECOM’s chairman and chief executive officer. “Confidence across our markets is increasing and has been bolstered by the anticipated positive benefits of U.S. tax reform and improving economic growth expectations. As a result, we are reaffirming our industry-leading five-year financial targets through fiscal 2022, including a 5%+ organic revenue CAGR, a 7%+ adjusted EBITDA CAGR, a 12 – 15% adjusted EPS CAGR and at least $3.5 billion of free cash flow.”
“Our strong first quarter results have us on track with our full-year financial goals, and we remain confident in creating substantial value for our investors through the execution of our strategy and capital allocation policy,” said W. Troy Rudd, AECOM’s chief financial officer. “Importantly, free cash flow was consistent with normal seasonality, highlighting the benefits of our diverse business model and our culture focused on risk management and driving cash flow. Accordingly, we are on track with our full year guidance for between $600 million and $800 million of free cash flow.”
Wins and Backlog
Wins were $6.1 billion, and resulted in a book-to-burn ratio5 of 1.2. Wins were highlighted by strength across the business, including greater than 1 book-to-burn ratios in the DCS, CS and MS segments. Total backlog increased 11%3 over the prior-year period to nearly $49 billion, and continued to reflect a favorable mix shift to the higher-margin DCS and MS segments.
