AECOM - FORM 8-K - EX-99.1

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Exhibit 99.1

NR 12-0801

Media Contact:
Paul Gennaro
SVP & Chief Communications Officer
212.973.3167
Paul.Gennaro@aecom.com

Investor Contact:
Lynn Antipas Tyson
SVP, Investor Relations
646.432.8428
Lynn.Tyson@aecom.com

AECOM reports third-quarter fiscal year 2012 financial results

· Strength in Asia-Pacific, Canada, civil infrastructure, and power, energy, and mining drive $2.1 billion in revenue, EPS of $0.63.

· Improved profitability and progress on working capital initiatives produce $186 million in free cash flow.

· Company reaffirms full-year EPS guidance of $2.30 to $2.45.

LOS ANGELES (Aug. 7, 2012) — AECOM Technology Corporation (NYSE: ACM) reported third-quarter revenue of $2.1 billion, a 2.4% increase from the third quarter of fiscal year 2011. Third-quarter revenue, net of other direct costs1, was $1.3 billion. Operating income for the third quarter decreased 6.5% from last year to $103 million due to challenging year-over-year performance in the Management Support Services (MSS) segment. Net income attributable to the company declined 6% to $69 million and earnings per share (EPS) grew 1.6% to 63 cents.

	Third Quarter			Year-to-Date
($ in millions, except EPS)	Q3 FY11	Q3 FY12	YOY % Change	Q3 YTD FY11	Q3 YTD FY12	YOY % Change
Gross Revenue	$2,047	$2,095	2.4%	$5,919	$6,135	3.6%
Net Service Revenue1	$1,314	$1,324	0.7%	$3,821	$3,844	0.6%
Operating Income	$110	$103	(6.5%)	$288	$253	(12.1%)
Net Income2	$74	$69	(6.0%)	$188	$166	(11.7%)
Earnings per Share2	$0.62	$0.63	1.6%	$1.59	$1.47	(7.5%)
Free Cash Flow3	$1	$186	NM	($29)	$159	N-M

All growth comparisons that follow are year over year unless noted otherwise.

“During the quarter, our organic net service revenue, on a currency-neutral basis, improved to 2% led by strength in our Asia, Australia and Canada operations with solid growth in our civil infrastructure as well as our power, energy and mining end markets,” said John M. Dionisio, AECOM chairman and chief executive officer. “In addition, we made further investments to enhance our capabilities to accelerate our growth in the future.”

As of June 30, 2012, AECOM had $398 million of total cash and cash equivalents and $1.1 billion of debt, equating to AECOM’s lowest net debt in seven quarters. In addition, AECOM reported $1.05 billion in committed bank facilities with $985 million in unused capacity. Cash flow from operations totaled $202 million in the quarter, while free cash flow totaled $186 million.

“Our strong third-quarter free cash flow generation of $186 million exceeded our expectations and illustrates the progress we are making to improve our balance of growth, profitability and liquidity. During the quarter, we completed the balance of our initial $200 million share repurchase program and repaid $175 million in debt,” said Michael S. Burke, AECOM president. “Improved execution on our margin initiatives was evident in our sequential earnings growth, and we enter our strongest quarter of the year with good momentum.”

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New Wins and Backlog

During the third quarter, new wins totaled $2.0 billion, while backlog at June 30, 2012, was $15.8 billion. These metrics demonstrate the underlying strength of our business as clients increasingly turn to AECOM for our integrated service platform and global expertise.

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 public sector clients worldwide.

Revenue of $1.85 billion grew 4%, and revenue, net of other direct costs, declined slightly by 0.4% to $1.16 billion. Operating income increased 4.5% to $120 million reflecting the benefits of the company’s operational efficiency and margin improvement initiatives.

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.

Revenue declined 9.2% to $248.7 million, and revenue, net of other direct costs, increased 10.1% to $158.9 million. Operating income declined 80% to $4 million; however, on a sequential basis, operating income grew 92% consistent with the company’s recovery plan for the segment.

Fiscal 2012 Outlook

AECOM reaffirms its EPS outlook for fiscal year 2012 of $2.30 to $2.45 and, given its current outlook, expects to be at the low end of this range. In the fourth quarter, the company expects typical seasonal improvement in its PTS segment, margin improvement across the Americas and Europe, and continued recovery in its MSS segment. On a full-year basis, the company expects free cash flow to meet or exceed next income.

AECOM is hosting a conference call today at 11 a.m. EDT, during which management will make a brief presentation focusing on the company’s results, strategies and operating trends. Those wishing to dial in to the call via telephone can do so by dialing 1-800-706-7741 or 1-617-614-3471 and entering the passcode 61587083. Interested parties also can listen to the conference call and view accompanying slides via webcast at www.aecom.com. The webcast will be available for replay following the call.

1AECOM’s gross revenue includes a significant amount of pass-through costs and, therefore, the company believes that revenue, net of other direct costs (net service revenue), which is a non-GAAP measure, also provides a valuable perspective on its business results.

2Attributable to AECOM.

3Q1 FY11 excludes the deferred compensation plan liability termination and related excess tax benefit effect. This is a non-GAAP measure.

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About AECOM

AECOM is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural, and social environments. A Fortune 500 company, AECOM serves clients in more than 130 countries and had revenue of $8.3 billion during the 12 months ended June 30, 2012. More information on AECOM and its services can be found at www.aecom.com.

Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings or other financial items; any statements of the plans, strategies and objectives for future operations; and 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 forward-looking statements include: uncertainties related to funding, audits, modifications and termination of long-term government contracts; losses under fixed-price contracts; limited control over operations run through our joint venture entities; misconduct by our employees or consultants or our failure to comply with laws or regulations; failure to successfully execute our merger and acquisition strategy; the need to retain and recruit key technical and management personnel; and unexpected adjustments and cancellations related to our backlog. Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in our reports filed with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statement.

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AECOM Technology Corporation

Consolidated Statements of Income

(unaudited - in thousands, except per share data)

	Three Months Ended							Nine Months Ended
	June 30, 2012			June 30, 2011			% Change	June 30, 2012			June 30, 2011			% Change

Revenue	$	2,095,138		$	2,046,725		2%	$	6,135,269		$	5,919,329		4%
Other direct costs	771,736			732,599			5%	2,291,518			2,098,027			9%
Revenue, net of other direct costs (non-GAAP)	1,323,402			1,314,126			1%	3,843,751			3,821,302			1%
Cost of revenue, net of other direct costs	1,212,164			1,192,887			2%	3,566,050			3,494,993			2%
Gross profit	111,238			121,239			(8)%	277,701			326,309			(15)%

Equity in earnings of joint ventures	12,281			12,248			0%	38,141			31,675			20%
General and administrative expenses	(20,682		)	(23,560		)	(12)%	(63,150		)	(70,430		)	(10)%
Income from operations	102,837			109,927			(6)%	252,692			287,554			(12)%

Other income (expense)	1,043			(1,585		)	*	7,433			2,159			244%
Interest expense, net	(12,702		)	(10,452		)	22%	(34,520		)	(30,338		)	14%
Income from continuing operations before income tax expense	91,178			97,890			(7)%	225,605			259,375			(13)%

Income tax expense	21,323			23,959			(11)%	57,670			63,701			(9)%
Net income	69,855			73,931			(6)%	167,935			195,674			(14)%
Noncontrolling interests in income of consolidated subsidiaries, net of tax	(442		)	(97		)	356%	(1,597		)	(7,257		)	(78)%
Net income attributable to AECOM	$	69,413		$	73,834		(6)%	$	166,338		$	188,417		(12)%

Net income allocation:
Preferred stock dividend	$	—		$	—		0%	$	—		$	2		(100)%
Net income available for common stockholders	69,413			73,834			(6)%	166,338			188,415			(12)%
Net income attributable to AECOM	$	69,413		$	73,834		(6)%	$	166,338		$	188,417		(12)%

Net income attributable to AECOM per share:
Basic	$	0.63		$	0.63		0%	$	1.48		$	1.60		(8)%
Diluted	$	0.63		$	0.62		2%	$	1.47		$	1.59		(8)%

Weighted average shares outstanding:
Basic	110,221			117,932				112,513			117,739
Diluted	110,819			118,907				113,233			118,767

* Not meaningful

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AECOM Technology Corporation

Balance Sheet and Cash Flow Information

(unaudited - in thousands)

	June 30, 2012			September 30, 2011
Balance Sheet Information:
Cash and cash equivalents	$	398,394		$	456,940
Accounts receivable, net	2,483,269			2,380,181
Working capital	1,041,775			1,175,620
Working capital, net of cash and cash equivalents	643,381			718,680

Total debt	1,070,267			1,162,469
Total assets	5,863,640			5,789,328
Total AECOM stockholders’ equity	2,455,750			2,339,711





	Three months ended						Nine months ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Cash Flow Information:
Net cash provided by / (used in) operating activities	$	201,965		$	15,911		$	206,963		$	(130,124	)
Net cash provided by / (used in) operating activities, excluding Q1 FY11 deferred compensation plan termination*	$	201,965		$	15,911		$	206,963		$	17,876
Capital expenditures	(15,600		)	(15,176		)	(47,805		)	(47,283		)
Free cash flow (non-GAAP)*	$	186,365		$	735		$	159,158		$	(29,407	)

*Nine months ended June 30, 2011, amount excludes deferred compensation plan termination ($90 million) and associated excess tax benefits ($58 million).

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AECOM TECHNOLOGY CORPORATION

Reportable Segments

(unaudited - $ in thousands)

Reportable Segments:	Professional Technical Services			Management Support Services			Corporate			Total

Three Months Ended June 30, 2012:
Revenue	$	1,846,487		$	248,651		$	—		$	2,095,138
Other direct costs	681,894			89,842			—			771,736
Revenue, net of other direct costs (non-GAAP)	1,164,593			158,809			—			1,323,402
Cost of revenue, net of other direct costs	1,050,438			161,726			—			1,212,164
Gross profit	114,155			(2,917		)	—			111,238
Equity in earnings of joint ventures	5,499			6,782			—			12,281
General and administrative expenses	¾			¾			(20,682		)	(20,682		)
Operating income	$	119,654		$	3,865		$	(20,682	)	$	102,837

Gross profit as a % of revenue	6.2		%	(1.2)		%	—			5.3		%
Gross profit as a % of revenue, net of other direct costs (non-GAAP)	9.8		%	(1.8)		%	—			8.4		%

Three Months Ended June 30, 2011:
Revenue	$	1,772,831		$	273,894		$	—		$	2,046,725
Other direct costs	603,050			129,549			—			732,599
Revenue, net of other direct costs (non-GAAP)	1,169,781			144,345			—			1,314,126
Cost of revenue, net of other direct costs	1,059,503			133,384			—			1,192,887
Gross profit	110,278			10,961			—			121,239
Equity in earnings of joint ventures	4,263			7,985			—			12,248
General and administrative expenses	—			—			(23,560		)	(23,560		)
Operating income	$	114,541		$	18,946		$	(23,560	)	$	109,927

Gross profit as a % of revenue	6.2		%	4.0		%	—			5.9		%
Gross profit as a % of revenue, net of other direct costs (non-GAAP)	9.4		%	7.6		%	—			9.2		%

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	AECOM TECHNOLOGY CORPORATION
	Reportable Segments
	(unaudited - $ in thousands)

Reportable Segments:	Professional Technical Services			Management Support Services			Corporate			Total

Nine Months Ended June 30, 2012:
Revenue	$	5,455,036		$	680,233		$	—		$	6,135,269
Other direct costs	2,026,460			265,058			—			2,291,518
Revenue, net of other direct costs (non-GAAP)	3,428,576			415,175			—			3,843,751
Cost of revenue, net of other direct costs	3,143,219			422,831			—			3,566,050
Gross profit	285,357			(7,656		)	—			277,701
Equity in earnings of joint ventures	12,547			25,594			—			38,141
General and administrative expenses	¾			¾			(63,150		)	(63,150		)
Operating income	$	297,904		$	17,938		$	(63,150	)	$	252,692

Gross profit as a % of revenue	5.2		%	(1.1)		%	—			4.5		%
Gross profit as a % of revenue, net of other direct costs (non-GAAP)	8.3		%	(1.8)		%	—			7.2		%

Contracted backlog	$	7,495,374		$	856,560		$	—		$	8,351,934
Awarded backlog	6,050,922			1,429,864			—			7,480,786
Total backlog	$	13,546,296		$	2,286,424		$	—		$	15,832,720

Nine Months Ended June 30, 2011:
Revenue	$	4,994,235		$	925,094		$	—		$	5,919,329
Other direct costs	1,594,891			503,136			—			2,098,027
Revenue, net of other direct costs (non-GAAP)	3,399,344			421,958			—			3,821,302
Cost of revenue, net of other direct costs	3,111,774			383,219			—			3,494,993
Gross profit	287,570			38,739			—			326,309
Equity in earnings of joint ventures	10,392			21,283			—			31,675
General and administrative expenses	—			—			(70,430		)	(70,430		)
Operating income	$	297,962		$	60,022		$	(70,430	)	$	287,554

Gross profit as a % of revenue	5.8		%	4.2		%	—			5.5		%
Gross profit as a % of revenue, net of other direct costs (non-GAAP)	8.5		%	9.2		%	—			8.5		%

Contracted backlog	$	7,900,596		$	1,145,472		$	—		$	9,046,068
Awarded backlog	5,471,906			1,518,720			—			6,990,626
Total backlog	$	13,372,502		$	2,664,192		$	—		$	16,036,694

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8-8-8	AECOM Technology Corporation
	Regulation G Information
	($ in millions)

Reconciliation of Revenue to Revenue, Net of Other Direct Costs

	Three Months Ended						Nine Months Ended
	June 30, 2012		March 31, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Consolidated
Revenue	$	2,095.2	$	2,010.9	$	2,046.7	$	6,135.3	$	5,919.3
Less: Other direct costs	771.7		721.4		732.6		2,291.5		2,098.0
Revenue, net of other direct costs	$	1,323.5	$	1,289.5	$	1,314.1	$	3,843.8	$	3,821.3

PTS Segment
Revenue	$	1,846.5	$	1,801.1	$	1,772.8	$	5,455.0	$	4,994.2
Less: Other direct costs	681.9		638.0		603.0		2,026.4		1,594.9
Revenue, net of other direct costs	$	1,164.6	$	1,163.1	$	1,169.8	$	3,428.6	$	3,399.3

MSS Segment
Revenue	$	248.7	$	209.8	$	273.9	$	680.3	$	925.1
Less: Other direct costs	89.8		83.4		129.6		265.1		503.1
Revenue, net of other direct costs	$	158.9	$	126.4	$	144.3	$	415.2	$	422.0

Reconciliation of Amounts Provided by Acquired Companies

	Three Months Ended June 30, 2012						Nine Months Ended June 30, 2012
	Total		Provided by Acquired Companies		Excluding Effect of Acquired Companies		Total		Provided by Acquired Companies		Excluding Effect of Acquired Companies
Consolidated
Revenue, net of other direct costs	$	1,323.5	$	5.8	$	1,317.7	$	3,843.8	$	24.3	$	3,819.5

Reconciliation of EBITDA to Net Income Attributable to AECOM

	Three Months Ended
	Jun 30, 2012		Mar 31, 2012		Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Mar 31, 2011		Dec 31, 2010		Sep 30, 2010
EBITDA	$	129.0	$	101.6	$	103.0	$	157.8	$	136.2	$	114.3	$	117.1	$	125.8
Less: Interest expense*	12.1		10.6		10.0		8.9		10.4		10.0		9.9		5.3
Less: Depreciation and amortization	26.1		25.3		25.5		25.1		28.0		27.4		29.8		21.2

Income from continuing operations attributable to AECOM before income taxes	90.8		65.7		67.5		123.8		97.8		76.9		77.4		99.3
Less: Income tax expense	21.4		16.7		19.6		36.4		24.0		19.2		20.5		31.5

Net income attributable to AECOM	$	69.4	$	49.0	$	47.9	$	87.4	$	73.8	$	57.7	$	56.9	$	67.8

Reconciliation of Total Debt to Net Debt

	June 30, 2012		March 31, 2012		June 30, 2011
Short-term debt	$	2.9	$	2.2	$	19.0
Current portion of long-term debt	116.8		86.5		11.6
Long-term debt	950.6		1,172.3		1,165.4
Total debt	1,070.3		1,261.0		1,196.0
Less: Total cash and cash equivalents	398.4		465.7		381.5
Net debt	$	671.9	$	795.3	$	814.5

Reconciliation of Net Cash Provided by / (Used In) Operating Activities to Free Cash Flow

	Three Months Ended									Nine Months Ended
	June 30, 2012			March 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Net cash provided by / (used in) operating activities	$	202.0		$	11.5		$	15.9		$	207.0		$	(130.1	)
Capital expenditures	(15.6		)	(13.9		)	(15.2		)	(47.8		)	(47.3		)
Settlement of deferred compensation plan liability	¾			¾			¾			¾			90.0
Excess tax benefit from share-based payment (associated with DCP termination)	¾			¾			¾			¾			58.0
Free cash flow	$	186.4		$	(2.4	)	$	0.7		$	159.2		$	(29.4	)

* Excluding related amortization.

***

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