AECOM (NYSE:ACM), the world’s premier infrastructure firm, today
shared an update on the multiple steps it has taken throughout the
global coronavirus pandemic to safeguard its employees and
operations, while continuing to deliver services and solutions to
help clients and communities along the path to recovery.
Taken together, these actions best position the Company to
continue to invest in people and innovation, and effectively
navigate business uncertainties during this time.
Safeguarding employees and operations
Following the lead of AECOM’s safety and health experts, as well
as guidance from government agencies and leading health
organizations, the Company has implemented comprehensive enterprise
resilience plans to include the restriction of all non-essential
business travel, enhancement of virtual consultation tools, and the
expansion of office and project site safety procedures. Further,
AECOM’s global workforce has seamlessly transitioned to remote
working where appropriate, bolstered by key investments in
information technology to enable robust remote work environments.
For example, nearly 90% of the firm’s design team in the Americas
is working remotely.
Leveraging the firm’s direct experience and successful
mitigating actions with the coronavirus outbreak in Asia, coupled
with its extensive business resilience and continuity expertise,
AECOM’s workforce is applying best practices in real-time. The
Company’s global teams are maximizing technology to collaborate,
sustain client delivery, and share industry-leading disaster
response and recovery credentials with public-sector and private
clients.
Delivering for clients
AECOM’s disaster recovery history includes rapid response
efforts in the aftermath of major hurricanes and other disasters.
Most recently, AECOM was selected by key U.S. federal and state
government agencies to assist in their responses to the coronavirus
crisis, including several substantial design and program management
projects to support the construction of emergency triage hospitals
on the East Coast.
AECOM will continue to work with its federal, state and local
clients, as well as engage with government officials, to aid both
immediate and long-term demands created by the coronavirus crisis
and as funding from economic stimulus programs begins to enter the
market. This includes the $2.2 trillion emergency aid package
approved by U.S. Congress. AECOM is supporting similar government
response efforts in the United Kingdom and other parts of the
world.
Ensuring business and financial resiliency
AECOM has a strong financial foundation and substantial
liquidity position, reflecting the benefit of the cash proceeds
from the sale of its Management Services business for aggregate
consideration of approximately $2.4 billion, which closed on
January 31, 2020. As previously disclosed, on a pro forma basis
giving effect to the Management Services sale, as of December 31,
2019, AECOM had cash and equivalents of approximately $1.7 billion,
total debt of $2.2 billion and net leverage1 of approximately 0.5x.
In addition, the Company has access to a $1.35 billion revolving
credit facility, which remains undrawn as of today.
AECOM has conducted a rigorous bottom-up review of the impact of
coronavirus at a client, project and office level under multiple
scenarios and different durations of virus impacts. As a result of
this analysis, the Company has implemented several immediate
actions designed to mitigate financial impacts and to ensure
business resiliency, including a focus on limiting impacts to
employees and keeping teams intact as response moves to recovery.
This includes a temporary 20% reduction in salaries among the Board
of Directors, Executive Leadership Team and other senior
leaders.
The Company anticipates reporting results for the second quarter
of fiscal 2020 on May 5th.
1 Net debt-to-EBITDA, or net leverage, is
comprised of EBITDA as defined in the Company’s credit agreement
dated October 17, 2014, as amended, which excludes stock-based
compensation, and net debt as defined as total debt on the
Company’s financial statements, net of total cash and cash
equivalents.
About AECOM
AECOM (NYSE:ACM) is the world’s premier infrastructure firm,
delivering professional services across the project lifecycle –
from planning, design and engineering to consulting and
construction management. We partner with our clients in the public
and private sectors to solve their most complex challenges and
build legacies for generations to come. On projects spanning
transportation, buildings, water, governments, energy and the
environment, our teams are driven by a common purpose to deliver a
better world. AECOM is a Fortune 500 firm with revenue of
approximately $20.2 billion during fiscal year 2019. See how we
deliver what others can only imagine at aecom.com and @AECOM.
Forward-Looking Statements
All statements in this release other than statements of
historical fact are “forward-looking statements” for purposes of
federal and state securities laws, including any statements of our
plans and strategies to mitigate the financial, liquidity and
business resiliency impacts associated with the coronavirus as well
as 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 our
forward-looking statements include, but are not limited to, the
following: our business is cyclical and vulnerable to economic
downturns and client spending reductions; impacts caused by the
coronavirus and the related economic instability and market
volatility, including the reaction of governments to the
coronavirus, including any prolonged period of travel, commercial
or other similar restrictions, the delay in commencement, or
temporary or permanent halting of construction, infrastructure or
other projects, requirements that we remove our employees or
personnel from the field for their protection, and delays in
planned initiatives by our governmental or commercial clients or
potential clients; losses under fixed-price contracts; limited
control over operations run through our joint venture entities;
liability for misconduct by our employees or consultants; failure
to comply with laws or regulations applicable to our business;
maintaining adequate surety and financial capacity; high leverage
and potential inability to service our debt and guarantees;
exposure to Brexit; exposure to political and economic risks in
different countries; currency exchange rate fluctuations; retaining
and recruiting key technical and management personnel; legal
claims; inadequate insurance coverage; environmental law compliance
and adequate nuclear indemnification; unexpected adjustments and
cancellations related to our backlog; partners and third parties
who may fail to satisfy their legal obligations; AECOM Capital real
estate development projects; managing pension cost; cybersecurity
issues, IT outages and data privacy; risks associated with the
benefits and costs of the Management Services transaction,
including the risk that the expected benefits of the Management
Services transaction or any contingent purchase price will not be
realized within the expected time frame, in full or at all, or that
any purchase price adjustments could be unfavorable or result in
lower aggregate cash proceeds; the risk that costs of restructuring
transactions and other costs incurred in connection with the
Management Services transaction will exceed our estimates or
otherwise adversely affect our business or operations; as well as
other additional risks and factors that could cause actual results
to differ materially from our forward-looking statements set forth
in our reports filed with the Securities and Exchange Commission.
Any forward-looking statements are made as of the date hereof. We
do not intend, and undertake no obligation, to update any
forward-looking statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20200403005059/en/
Investor: Will Gabrielski Senior Vice President, Investor
Relations 213.593.8208 William.Gabrielski@aecom.com
Media: Brendan Ranson-Walsh Vice President, Global
Communications & Corporate Responsibility 213.996.2367
Brendan.Ranson-Walsh@aecom.com
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