AECOM reports second quarter fiscal year 2021 results

NM — not meaningful

Balance Sheet Information
(unaudited - in thousands)

	September 30, 2020	March 31, 2021
Balance Sheet Information:
Total cash and cash equivalents	$ 1,708,332	$ 934,906
Accounts receivable and contract assets – net	4,532,255	4,310,875
Working capital	1,439,912	656,529
Total debt, excluding unamortized debt issuance costs	2,085,017	2,126,553
Total assets	12,998,951	11,983,833
Total AECOM stockholders’ equity	3,292,558	2,822,969

AECOM
Reportable Segments
(unaudited - in thousands)

	Americas	International	AECOM Capital		Corporate		Total
Three Months Ended March 31, 2021
Revenue	$ 2,468,401	$ 796,442	$ 730		$ -		$ 3,265,573
Cost of revenue	2,316,726	753,588	-		-		3,070,314
Gross profit	151,675	42,854	730		-		195,259
Equity in earnings of joint ventures	2,978	3,003	1,176		-		7,157
General and administrative expenses	-	-	(1,432	)	(34,575	)	(36,007	)
Restructuring costs	-	-	-		(8,746	)	(8,746	)
Income (loss) from operations	$ 154,653	$ 45,857	$ 474		$ (43,321	)	$ 157,663

Gross profit as a % of revenue	6.1%	5.4%	-		-		6.0%

Three Months Ended March 31, 2020
Revenue	$ 2,475,694	$ 769,535	$ 508		$ -		$ 3,245,737
Cost of revenue	2,340,061	736,863	-		-		3,076,924
Gross profit	135,633	32,672	508		-		168,813
Equity in earnings of joint ventures	5,341	3,148	5,016		-		13,505
General and administrative expenses	-	-	(1,759	)	(39,278	)	(41,037	)
Restructuring costs	-	-	-		(31,213	)	(31,213	)
Income (loss) from operations	$ 140,974	$ 35,820	$ 3,765		$ (70,491	)	$ 110,068

Gross profit as a % of revenue	5.5%	4.2%	--		--		5.2%

Six Months Ended March 31, 2021
Revenue	$ 5,025,661	$ 1,552,053	$ 1,014		$ -		$ 6,578,728
Cost of revenue	4,728,954	1,470,145	-		-		6,199,099
Gross profit	296,707	81,908	1,014		-		379,629
Equity in earnings of joint ventures	4,385	6,011	4,962		-		15,358
General and administrative expenses	-	-	(3,361	)	(71,006	)	(74,367	)
Restructuring costs	-	-	-		(21,784	)	(21,784	)
Income (loss) from operations	$ 301,092	$ 87,919	$ 2,615		$ (92,790	)	$ 298,836

Gross profit as a % of revenue	5.9%	5.3%	-		-		5.8%

Contracted backlog	$ 15,138,981	$ 4,038,385	$ -		$ -		$ 19,177,366
Awarded backlog	18,779,481	1,084,276	-		-		19,863,757
Unconsolidated JV backlog	386,302	-	-		-		386,302
Total backlog	$ 34,304,764	$ 5,122,661	$ -		$ -		$ 39,427,425

Six Months Ended March 31, 2020
Revenue	$ 4,927,676	$ 1,552,630	$ 1,041		$ -		$ 6,481,347
Cost of revenue	4,652,611	1,494,123	-		-		6,146,734
Gross profit	275,065	58,507	1,041		-		334,613
Equity in earnings of joint ventures	11,770	5,984	5,679		-		23,433
General and administrative expenses	-	-	(4,178	)	(80,473	)	(84,651	)
Restructuring costs	-	-	-		(76,138	)	(76,138	)
Income (loss) from operations	$ 286,835	$ 64,491	$ 2,542		$ (156,611	)	$ 197,257

Gross profit as a % of revenue	5.6%	3.8%	-		-		5.2%

Contracted backlog	$ 13,512,174	$ 3,518,306	$ -		$ -		$ 17,030,480
Awarded backlog	22,907,354	897,933	-		-		23,805,287
Unconsolidated JV backlog	775,275	-	-		-		775,275
Total backlog	$ 37,194,803	$ 4,416,239	$ -		$ -		$ 41,611,042

AECOM
Regulation G Information
($ in millions)

Reconciliation of Revenue to Revenue, Net of Subcontractor and Other Direct Costs (NSR)
	Three Months Ended						Six Months Ended
	Mar 31, 2020		Dec 31, 2020		Mar 31, 2021		Mar 31, 2020		Mar 31, 2021
Americas
Revenue	$	2,475.7	$	2,557.3	$	2,468.3	$	4,927.7	$	5,025.6
Less: Subcontractor and other direct costs		1,542.5		1,694.3		1,544.7		3,088.9		3,239.0
Revenue, net of subcontractor and other direct costs	$	933.2	$	863.0	$	923.6	$	1,838.8	$	1,786.6

International
Revenue	$	769.5	$	755.6	$	796.5	$	1,552.6	$	1,552.1
Less: Subcontractor and other direct costs		143.2		142.6		151.8		292.7		294.4
Revenue, net of subcontractor and other direct costs	$	626.3	$	613.0	$	644.7	$	1,259.9	$	1,257.7

Segment Performance (excludes ACAP)
Revenue	$	3,245.2	$	3,312.9	$	3,264.8	$	6,480.3	$	6,577.7
Less: Subcontractor and other direct costs		1,685.7		1,836.9		1,696.5		3,381.6		3,533.4
Revenue, net of subcontractor and other direct costs	$	1,559.5	$	1,476.0	$	1,568.3	$	3,098.7	$	3,044.3

Consolidated
Revenue	$	3,245.7	$	3,313.2	$	3,265.5	$	6,481.3	$	6,578.7
Less: Subcontractor and other direct costs		1,685.7		1,836.9		1,696.5		3,381.6		3,533.4
Revenue, net of subcontractor and other direct costs	$	1,560.0	$	1,476.3	$	1,569.0	$	3,099.7	$	3,045.3

Reconciliation of Total Debt to Net Debt
	Balances at:
	Mar 31, 2020	Dec 31, 2020	Mar 31, 2021
Short-term debt	$ 27.2	$ 2.3	$ 4.7
Current portion of long-term debt	25.2	22.0	42.2
Long-term debt, gross	2,101.2	2,066.4	2,079.7
Total debt, excluding unamortized debt issuance costs	2,153.6	2,090.7	2,126.6
Less: Total cash and cash equivalents	1,135.1	1,044.7	934.9
Net debt	$ 1,018.5	$ 1,046.0	$ 1,191.7

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
	Three Months Ended									Six Months Ended
	Mar 31, 2020			Dec 31, 2020			Mar 31, 2021			Mar 31, 2020			Mar 31, 2021

Net cash (used in) provided by operating activities	$	(299.1	)	$	7.1		$	59.2		$	(506.0	)	$	66.3
Capital expenditures, net		(13.4	)		(21.3	)		(55.9	)		(44.5	)		(77.2	)
Free cash flow	$	(312.5	)	$	(14.2	)	$	3.3		$	(550.5	)	$	(10.9	)

AECOM
Regulation G Information
($ in millions, except per share data)

	Three Months Ended									Six Months Ended
	Mar 31, 2020			Dec 31, 2020			Mar 31, 2021			Mar 31, 2020			Mar 31, 2021

Reconciliation of Income from Operations to Adjusted Income from Operations
Income from operations	$	110.1		$	141.2		$	157.6		$	197.3		$	298.8
Non-core operating losses & transaction related expenses		-			-			-			5.6			-
Accelerated depreciation of project management tool		11.3			-			-			11.3			-
Restructuring costs		31.2			13.0			8.8			76.1			21.8
Amortization of intangible assets		6.2			5.3			5.4			12.3			10.7
Adjusted income from operations	$	158.8		$	159.5		$	171.8		$	302.6		$	331.3

Reconciliation of Income from Continuing Operations Before Taxes to Adjusted Income from Continuing Operations Before Taxes
Income from continuing operations before tax expense	$	75.4		$	114.4		$	128.3		$	126.2		$	242.7
Non-core operating losses & transaction related expenses		-			-			-			5.6			-
Accelerated depreciation of project management tool		11.3			-			-			11.3			-
Restructuring costs		31.2			13.0			8.8			76.1			21.8
Amortization of intangible assets		6.2			5.3			5.4			12.3			10.7
Financing charges in interest expense		0.9			1.8			2.6			2.9			4.4
Adjusted income from continuing operations before tax expense	$	125.0		$	134.5		$	145.1		$	234.4		$	279.6

Reconciliation of Income Taxes for Continuing Operations to Adjusted Income Taxes for Continuing Operations
Income tax expense for continuing operations	$	21.6		$	25.6		$	35.1		$	37.5		$	60.7
Tax effect of the above adjustments*		11.4			5.5			4.6			26.6			10.1
Valuation allowances and other tax only items		(1.1	)		2.7			0.1			(1.5	)		2.8
Adjusted income tax expense for continuing operations	$	31.9		$	33.8		$	39.8		$	62.6		$	73.6
^* Adjusts 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 Noncontrolling Interests from Continuing Operations to Adjusted Net Income Attributable to Noncontrolling Interests from Continuing Operations
Net income attributable to noncontrolling interests from continuing operations	$	(5.3	)	$	(5.4	)	$	(4.9	)	$	(9.3	)	$	(10.3	)
Amortization of intangible assets included in NCI, net of tax		(0.1	)		(0.1	)		(0.2	)		(0.2	)		(0.3	)
Adjusted net income attributable to noncontrolling interests from continuing operations	$	(5.4	)	$	(5.5	)	$	(5.1	)	$	(9.5	)	$	(10.6	)

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	$	48.5		$	83.4		$	88.3		$	79.4		$	171.7
Non-core operating losses & transaction related expenses		-			-			-			5.6			-
Accelerated depreciation of project management tool		11.3			-			-			11.3			-
Restructuring costs		31.2			13.0			8.8			76.1			21.8
Amortization of intangible assets		6.2			5.3			5.4			12.3			10.7
Financing charges in interest expense		0.9			1.8			2.6			2.9			4.4
Tax effect of the above adjustments *		(11.5	)		(5.5	)		(4.6	)		(26.7	)		(10.1	)
Valuation allowances and other tax only items		1.1			(2.7	)		(0.1	)		1.5			(2.8	)
Amortization of intangible assets included in NCI, net of tax		(0.1	)		(0.1	)		(0.2	)		(0.2	)		(0.3	)
Adjusted net income attributable to AECOM from continuing operations	$	87.6		$	95.2		$	100.2		$	162.2		$	195.4
* Adjusts the income tax expense (benefit) 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, 2020					Dec 31, 2020					Mar 31, 2021						Mar 31, 2020						Mar 31, 2021

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	$	0.30				$	0.54				$		0.59				$		0.49				$		1.13
Per diluted share adjustments:
Non-core operating losses & transaction related expenses		-					-						-						0.03						-
Accelerated depreciation of project management tool		0.07					-						-						0.07						-
Restructuring costs		0.19					0.09						0.06						0.47						0.14
Amortization of intangible assets		0.04					0.04						0.04						0.08						0.07
Financing charges in interest expense		0.01					0.01						0.02						0.02						0.03
Tax effect of the above adjustments *		(0.07		)			(0.04		)				(0.04		)				(0.16		)				(0.06		)
Valuation allowances and other tax only items		0.01					(0.02		)				-						0.01						(0.02		)
Adjusted net income attributable to AECOM from continuing operations per diluted share	$	0.55				$	0.62				$		0.67				$		1.01				$		1.29
Weighted average shares outstanding – basic		158.6					151.4						147.8						157.9						149.6
Weighted average shares outstanding – diluted		160.7					153.7						149.5						160.7						151.6
* Adjusts the income tax expense (benefit) 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 EBITDA to Adjusted EBITDA and to Adjusted Income from Operations
Net income attributable to AECOM from continuing operations	$	48.5			$			83.4				$		88.3				$		79.4				$		171.7
Income tax expense		21.6						25.6						35.1						37.5						60.7
Depreciation and amortization expense ¹		48.7						39.4						41.1						89.8						80.5
Interest income ²		(3.6	)					(1.3		)				(1.2		)				(7.0		)				(2.5	)
Interest expense		37.1						30.7						32.8						77.4						63.5
Amortized bank fees included in interest expense		(1.3	)					(1.8		)				(2.6		)				(3.3		)				(4.4	)
EBITDA	$	151.0			$			176.0				$		193.5				$		273.8				$		369.5
Non-core operating losses & transaction related expenses		-						-						-						5.6						-
Restructuring costs		31.2						13.0						8.8						76.2						21.8
Adjusted EBITDA	$	182.2			$			189.0				$		202.3				$		355.6				$		391.3
Other income		(2.4	)					(3.9		)				(3.4		)				(6.4		)				(7.3	)
Depreciation ¹		(30.0	)					(32.4		)				(33.3		)				(63.1		)				(65.7	)
Interest income ²		3.6						1.3						1.2						7.0						2.5
Noncontrolling interests in income of consolidated subsidiaries, net of tax		5.3						5.4						4.8						9.3						10.2
Amortization of intangible assets included in NCI, net of tax		0.1						0.1						0.2						0.2						0.3
Adjusted income from operations	$	158.8			$			159.5				$		171.8				$		302.6				$		331.3
¹ Excludes depreciation from discontinued operations, non-core operating losses, and accelerated depreciation of project management tool ² Included in other income

AECOM Regulation G Information (in millions, except per share data)
	Three Months Ended								Six Months Ended
	Mar 31, 2020			Dec 31, 2020		Mar 31, 2021			Mar 31, 2020				Mar 31, 2021

Reconciliation of Segment Income from Operations to Adjusted Income from Operations
Americas Segment:
Income from operations	$	141.0	$		146.4		$	154.7		$	286.8			$	301.1
Amortization of intangible assets		4.8			4.3			4.4			9.5				8.7
Adjusted income from operations	$	145.8	$		150.7		$	159.1		$	296.3			$	309.8

International Segment:
Income from operations	$	35.8	$		42.1		$	45.8		$	64.5			$	87.9
Non-core operating losses & transaction related expenses		-			-			-			(0.1	)			-
Amortization of intangible assets		1.4			1.0			1.0			2.8				2.0
Adjusted income from operations	$	37.2	$		43.1		$	46.8		$	67.2			$	89.9

Segment Performance (excludes ACAP):
Income from operations	$	176.8	$		188.5		$	200.5		$	351.3			$	389.0
Non-core operating losses & transaction related expenses		-			-			-			(0.1	)			-
Amortization of intangible assets		6.2			5.3			5.4			12.3				10.7
Adjusted income from operations	$	183.0	$		193.8		$	205.9		$	363.5			$	399.7

AECOM
Regulation G Information

FY2021 GAAP EPS Guidance based on Adjusted EPS Guidance
(all figures approximate)	Fiscal Year End 2021
GAAP EPS Guidance		$2.33 to $2.53
Adjusted EPS excludes:
Amortization of intangible assets		$0.13
Amortization of deferred financing fees		$0.05
Restructuring		$0.27
Tax effect of the above items		($0.13)
Adjusted EPS Guidance		$2.65 to $2.85

FY2021 GAAP Net Income Attributable to AECOM from Continuing Operations Guidance based on Adjusted EBITDA Guidance
(in millions, all figures approximate)	Fiscal Year End 2021
GAAP net income attributable to AECOM from continuing operations guidance*		$350 to $380
Adjusted net income attributable to AECOM from continuing operations excludes:
Amortization of intangible assets		$20
Amortization of deferred financing fees		$7
Restructuring*		$40
Tax effect of the above items		($19)
Adjusted net income attributable to AECOM from continuing operations		$398 to $428
Adjusted EBITDA excludes:
Adjusted interest expense, net		$100
Depreciation		$132
Income tax expense		$160 to $170
Adjusted EBITDA Guidance		$790 to $830
* Calculated based on the mid-point of AECOM’s fiscal year 2021 EPS guidance.

FY2021 GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance
(in millions, all figures approximate)	Fiscal Year End 2021
GAAP Interest Expense Guidance		$111
Financing charges in interest expense		($7)
Interest income		($4)
Adjusted Interest Expense Guidance		$100

FY2021 GAAP Income from Operations as a % of Revenue Guidance based on Segment Adjusted Operating Income as a % of Net Service Revenue Guidance

(all figures approximate)	Fiscal Year End 2021
Income from operations as a % of revenue		4.7%
ACAP income from operations		(0.1)%
Corporate net expense		1.1%
Restructuring expenses*		0.3%
Subcontractor and other direct costs		7.0%
Amortization of intangible assets		0.2%
Segment adjusted operating income as a % of net service revenue		13.2%

FY2021 GAAP Operating Cash Flow Guidance based on Free Cash Flow Guidance

(in millions, all figures approximate)	Fiscal Year End 2021
Operating cash flow guidance		$535 to $735
Capital expenditures, net of proceeds from equipment disposals		($110)
Free cash flow guidance		$425 to $625
* Calculated based on the mid-point of AECOM’s fiscal year 2021 EPS guidance Note: Variances in tables are due to rounding.

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