AECOM reported first-quarter revenue of $4.2 billion. Operating income equaled $15 million, the net loss totaled $104 million, and the loss per share3 equaled $0.73.
Article continues below
On an adjusted basis, diluted earnings per share1 were $0.71 for the quarter.
New wins in the quarter of $4.6 billion were driven by growth in the Americas, Asia-Pacific and the firm’s building construction business. After adjusting for acquisitions, total backlog increased 16 percent. The company’s book-to-burn ratio5 was 1.1 for the quarter, with total backlog at Dec. 31, 2014, of $41 billion.
In addition to providing consolidated financial results, AECOM reports separate financial information for its three segments: Design & Consulting Services (DCS), Construction Services (CS), and Management Services (MS).
The DCS segment delivers planning, consulting, architectural and engineering design services to commercial and government clients worldwide in major end markets such as transportation, facilities, environmental, energy, water and government.
Revenue of $1.9 billion in the quarter increased 44 percent. Constant currency organic revenue declined 2 percent. Adjusted operating income6 was $83.2 million, a decrease of 8 percent. The growth rate in adjusted operating income was negatively impacted by the inclusion of a gain in the year-ago period from the consolidation of the AECOM Arabia joint venture.
The CS segment provides construction services for energy, commercial, industrial as well as public and private infrastructure clients.
Revenue in the quarter was $1.5 billion. On an organic basis, revenue increased 25 percent. Adjusted operating income6 was $69.3 million. Organic results were favorably impacted by strong performance in the building construction business.
The MS 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, national governments around the world, and commercial customers.
Revenue increased 248 percent to $779 million in the quarter. On an organic basis, revenue declined 8 percent. Adjusted operating income6 was $96 million.
Cash flow from operations for the quarter was $283 million. Free cash flow2, which includes capital expenditures of $30 million in the quarter, was $253 million.
As of December 31, 2014, AECOM had $735 million of total cash and cash equivalents, $4.98 billion of debt and $859 million in unused capacity under the $1.05 billion revolving credit facility.
AECOM is affirming adjusted EPS1 guidance for fiscal year 2015 of $2.75 to $3.35. The mid-point of the range assumes approximately $110 million of realized synergies from the URS combination. ■