AECOM Reports Strong Net Income, Operating Income, Backlog for Second Quarter of Fiscal Year 2008

Business Wire,  May 8, 2008  

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* Second-quarter diluted earnings per share of 35 cents, up 30% from the same period last year.

* Net income for second quarter increased 69% year over year to $35.8 million.

* Operating income for second quarter increased 55% year over year to $59.0 million.

* Revenue for second quarter increased 7% year over year to $1.2 billion.

* Revenue, net of other direct costs increased 27% year over year to $750.8 million.

* Backlog at March 31, 2008, increased 20% year over year to $7.1 billion.

* Diluted earnings-per-share outlook raised to $1.30 to $1.34 for full fiscal year 2008.

LOS ANGELES -- AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today its financial results for the second quarter of fiscal year 2008, which ended March 31, 2008.

AECOM reported net income of $35.8 million for the second quarter, or diluted earnings per share (EPS) of 35 cents. These results represent an increase of 69% over net income of $21.2 million for the same period last year. Operating income for the second quarter increased 55% year over year to $59.0 million. For the first six months of fiscal year 2008, AECOM reported net income of $65.3 million and operating income of $103.5 million, an increase of 40% and 52%, respectively.

Second-quarter revenue increased to $1.2 billion, 7% higher than the second quarter of fiscal year 2007. AECOM's gross revenue includes a significant amount of pass-through costs and, therefore, revenue, net of other direct costs, which is a non-GAAP measure, also provides a valuable perspective on its business results. AECOM's revenue, net of other direct costs for the three months ended March 31, 2008, increased 27% compared to the same period last year, to $750.8 million. For the first six months of fiscal 2008, AECOM reported revenue of $2.2 billion and revenue, net of other direct costs of $1.4 billion, an increase of 11% and 31%, respectively.

"Our second-quarter results were marked by strong global growth," said John M. Dionisio, AECOM president and chief executive officer. "During the quarter, we saw continued strength in our U.S. business, while our non-U.S. revenue continued to increase - our non-U.S. revenue now represents 53% of our total revenue."

"The global infrastructure market continues to fuel a solid demand for our services," said Dionisio. "Projects such as our work in support of Abu Dhabi's Ain Khalid Commercial Avenue project, the Los Angeles International Airport Capital Improvement Program, and evolving work for the Libyan Housing and Infrastructure Board highlight the breadth and diversification of our success."

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 government clients worldwide.

For the second quarter of fiscal 2008, the PTS segment reported revenue of $955.1 million and operating income of $60.6 million, compared to revenue of $843.2 million and operating income of $39.4 million for the same period during fiscal year 2007. This represents a 13% increase in revenue and a 54% increase in operating income year over year. PTS revenue, net of other direct costs, increased 27% for the three months ended March 31, 2008, to $710.6 million.

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.

For the second quarter of fiscal year 2008, the MSS segment reported revenue of $209.1 million and operating income of $14.0 million, compared to revenue of $240.5 million and operating income of $8.3 million for the same period during fiscal year 2007. This represents a 13% decrease in revenue and a 68% increase in operating income year over year. Segment results for the quarter were positively affected by the release of key task orders and the resolution of government contract negotiations. MSS revenue, net of other direct costs, increased 40% for the three months ended March 31, 2008, to $40.1 million.

Outlook

AECOM announced backlog totaling $7.1 billion at March 31, 2008, a 20% increase year over year.

"AECOM continued to deliver strong results across all of our end markets and geographies during the second quarter," said Michael S. Burke, AECOM executive vice president, chief corporate officer and chief financial officer. "Moreover, the $1.2-billion increase in our year-over-year backlog indicates continued strength and solid momentum in our end markets."