AECOM provides business update, reaffirms fiscal 2020 financial guidance & announces participation in upcoming investor confe...
May 26 2020 - 6:55AM
Business Wire
AECOM (NYSE:ACM), the world’s premier infrastructure firm, today
provided an update on its business and operational performance. The
Company also announced that it will participate in the virtual Key
Bank Industrials & Basic Materials conference and Baird Global
Consumer, Technology & Services conference on May 29th and June
2nd, respectively.
Based on the strong financial performance delivered in the first
half of the fiscal year and continued momentum through May, the
Company has reaffirmed its full year financial guidance, including
its expectation for 10% adjusted EBITDA1 growth at the mid-point of
its guidance range and free cash flow2 of between $100 million and
$300 million.
Business Performance
Highlights
- The book-to-burn ratios for AECOM’s design business have
exceeded 1.0 quarter-to-date, with broad-based strength in its
largest market sectors and geographies.
- The Company has maintained industry-leading market share of
U.S. Federal spend for COVID-19 response work, winning
approximately 25% of all work by value, according to Bloomberg
BGOV.
- Capitalizing on key investments in technology over the past
several years, the Company is leading the industry’s digital
transformation and is extending its competitive advantage, as
highlighted by the recent launches of two innovative client
engagement platforms: AECOM Environmental Engagement that
streamlines documentation and stakeholder engagement throughout the
environmental assessment process and AECOM’s virtual public
consultation tool that enables clients to productively engage
stakeholders in digital settings.
- These platforms have deepened client engagement by assisting in
the seamless transition to a remote working environment as a result
of limitations on movement and person-to-person interactions.
- Quarter-to-date cash collections are tracking ahead of the
prior year, which underscores confidence in achieving the
reaffirmed full year free cash flow2 guidance.
- The Company has executed an agreement with Lindsay Goldberg and
American Securities that resolved all post disposition working
capital adjustments related to the sale of the Management Services
business and this cash was collected on May 20th, materially
consistent with previously communicated expectations.
- On May 18th, the Company announced that it successfully turned
over care, custody and control of the West Riverside Energy Center
plant to Alliant Energy, marking a substantial milestone for the
project and in the Company’s commitment to exit all self-perform,
at-risk construction.
Reaffirmed Fiscal Year 2020 Financial
Guidance
- AECOM reaffirmed its financial guidance for fiscal 2020,
including adjusted EBITDA1 of between $700 million and $740
million, which would mark 10% year-over-year growth at the
mid-point of the range and a second consecutive year of
double-digit adjusted EBITDA growth.
- This guidance includes the previously contemplated $15 million
negative impact due to changes in foreign exchange rates and other
assumptions noted in the Company’s fiscal second quarter earnings
announcement.
- The Company also reiterated its full year free cash flow2
guidance of between $100 million and $300 million.
“We are reaffirming our full year guidance, reflecting continued
strong performance so far in our fiscal third quarter that builds
on our outstanding performance in the first half of the year,” said
W. Troy Rudd, AECOM’s chief financial officer. “We entered the year
with tremendous momentum following our many accomplishments in
fiscal 2019, and our employees have responded admirably to the
unprecedented challenges created by the COVID pandemic. While the
severity of the economic downturn and the speed of the recovery
remain unknown, some markets are showing signs of recovery, and our
actions have best positioned the company to achieve our long-term
strategic and financial objectives.”
1 Excludes the impact of non-operating items, such as non-core
operating losses and transaction-related expenses, restructuring
costs and other items, and reflects Continuing Operations. 2 Free
cash flow is defined as cash flow from operations less capital
expenditures net of proceeds from disposals, and includes the net
working capital purchase price adjustment collected in May 2020 in
association with the sale of the Management Services business.
About AECOM
AECOM (NYSE:ACM) is the world’s premier infrastructure firm,
delivering professional services throughout 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 communication other than statements of
historical fact are “forward-looking statements” for purposes of
federal and state securities laws, including any statements of the
plans, strategies and objectives for future operations,
profitability, strategic value creation, coronavirus impacts, risk
profile and investment strategies, and any statements regarding
future economic conditions and performance, and the expected
financial and operational results of AECOM. 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; 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.
Non-GAAP Financial Information
This press release contains financial information calculated
other than in accordance with U.S. generally accepted accounting
principles (“GAAP”). The Company believes that non-GAAP financial
measures such as adjusted EBITDA and free cash flow provide a
meaningful perspective on its business results as the Company
utilizes this information to evaluate and manage the business. We
use adjusted EBITDA to exclude the impact of non-operating items,
such as amortization expense, taxes and non-core operating losses
to aid investors in better understanding our core performance
results. We use free cash flow to represent the cash generated
after capital expenditures to maintain our business.
Our 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 our results as
reported under GAAP, nor is it necessarily comparable to non-GAAP
performance measures that may be presented by other companies.
When we provide our long term projections for adjusted EBITDA
and free cash flow on a forward-looking basis, the closest
corresponding GAAP measure and a reconciliation of the differences
between the non-GAAP expectation and the corresponding GAAP measure
generally is not available without unreasonable effort due to the
length, high variability, complexity and low visibility associated
with the non-GAAP expectation projected against the multi-year
forecast which could significantly impact the GAAP measure.
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version on businesswire.com: https://www.businesswire.com/news/home/20200526005186/en/
Investor Contact: Will Gabrielski Senior Vice President,
Investor Relations 213.593.8208 William.Gabrielski@aecom.com
Media Contact: Brendan Ranson-Walsh Vice President,
Global Communications & Corporate Responsibility 213.996.2367
Brendan.Ranson-Walsh@aecom.com
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