AECOM Earnings 2021-03-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-52423

AECOM

(Exact name of registrant as specified in its charter)

Delaware		61-1088522
State or Other Jurisdiction Of Incorporation or Organization		I.R.S. Employer Identification Number

300 South Grand Avenue, Suite 900
Los Angeles, California		90071
Address of Principal Executive Offices		Zip Code

(213) 593-8100

Registrant’s Telephone Number, Including Area Code

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.01 par value		ACM		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	⌧	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

As of May 6, 2021, 146,392,928 shares of the registrant’s common stock were outstanding.

Table of Contents

AECOM

INDEX


PART I.	FINANCIAL INFORMATION	1

Item 1.	Financial Statements	1

	Consolidated Balance Sheets as of March 31, 2021 (unaudited) and September 30, 2020	1

	Consolidated Statements of Operations for the Three and Six Months Ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)	3

	Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)	4

	Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)	6

	Notes to Consolidated Financial Statements (unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50

Item 4.	Controls and Procedures	50

PART II.	OTHER INFORMATION	51

Item 1.	Legal Proceedings	51

Item 1A.	Risk Factors	51

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51

Item 4.	Mine Safety Disclosure	52

Item 6.	Exhibits	53

SIGNATURES		54

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AECOM

Consolidated Balance Sheets

(unaudited - in thousands, except share data)


	March 31,		September 30,
	2021		2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	815,569	$	1,599,688
Cash in consolidated joint ventures		119,337		108,644
Total cash and cash equivalents		934,906		1,708,332
Accounts receivable—net		2,793,212		2,920,730
Contract assets		1,517,663		1,611,525
Prepaid expenses and other current assets		870,962		691,707
Current assets held for sale		102,859		562,435
Income taxes receivable		38,824		35,637
TOTAL CURRENT ASSETS		6,258,426		7,530,366
PROPERTY AND EQUIPMENT—NET		408,168		381,672
DEFERRED TAX ASSETS—NET		380,686		361,675
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES		326,958		297,595
GOODWILL		3,512,839		3,484,221
INTANGIBLE ASSETS—NET		66,791		76,917
OTHER NON-CURRENT ASSETS		313,158		160,036
OPERATING LEASE RIGHT-OF-USE ASSETS		657,978		652,115
NON-CURRENT ASSETS HELD FOR SALE		58,829		54,354
TOTAL ASSETS	$	11,983,833	$	12,998,951
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	4,667	$	223
Accounts payable		2,115,110		2,358,228
Accrued expenses and other current liabilities		2,342,285		2,249,704
Income taxes payable		38,457		47,103
Contract liabilities		985,043		996,922
Current liabilities held for sale		74,103		417,623
Current portion of long-term debt		42,232		20,651
TOTAL CURRENT LIABILITIES		5,601,897		6,090,454
OTHER LONG-TERM LIABILITIES		146,225		162,784
OPERATING LEASE LIABILITIES, NON-CURRENT		734,218		745,287
LONG-TERM LIABILITIES HELD FOR SALE		60,263		79,254
DEFERRED TAX LIABILITY-NET		5,966		3,491
PENSION BENEFIT OBLIGATIONS		451,836		463,001
LONG-TERM DEBT		2,056,728		2,041,136
TOTAL LIABILITIES		9,057,133		9,585,407

COMMITMENTS AND CONTINGENCIES (Note 15)

AECOM STOCKHOLDERS’ EQUITY:
Common stock—authorized, 300,000,000 shares of $0.01 par value as of March 31, 2021 and September 30, 2020; issued and outstanding 146,751,065 and 157,044,687 shares as of March 31, 2021 and September 30, 2020, respectively		1,468		1,570
Additional paid-in capital		4,054,089		4,035,414
Accumulated other comprehensive loss		(895,736)		(918,674)
(Accumulated deficits) Retained earnings		(336,852)		174,248
TOTAL AECOM STOCKHOLDERS’ EQUITY		2,822,969		3,292,558
Noncontrolling interests		103,731		120,986
TOTAL STOCKHOLDERS’ EQUITY		2,926,700		3,413,544
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	11,983,833	$	12,998,951

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

AECOM

Consolidated Statements of Operations

(unaudited - in thousands, except per share data)


	Three Months Ended				Six Months Ended
	March 31,		March 31,		March 31,		March 31,
	2021		2020		2021		2020
Revenue	$	3,265,573	$	3,245,737	$	6,578,728	$	6,481,347
Cost of revenue		3,070,314		3,076,924		6,199,099		6,146,734
Gross profit		195,259		168,813		379,629		334,613

Equity in earnings of joint ventures		7,157		13,505		15,358		23,433
General and administrative expenses		(36,007)		(41,037)		(74,367)		(84,651)
Restructuring costs		(8,746)		(31,213)		(21,784)		(76,138)
Income from operations		157,663		110,068		298,836		197,257

Other income		3,477		2,430		7,330		6,438
Interest expense		(32,800)		(37,111)		(63,451)		(77,488)
Income from continuing operations before taxes		128,340		75,387		242,715		126,207
Income tax expense for continuing operations		35,148		21,604		60,749		37,510
Net income from continuing operations		93,192		53,783		181,966		88,697
Net loss from discontinued operations		(47,914)		(130,749)		(103,666)		(112,569)
Net income (loss)		45,278		(76,966)		78,300		(23,872)

Net income attributable to noncontrolling interests from continuing operations		(4,845)		(5,243)		(10,259)		(9,290)
Net income attributable to noncontrolling interests from discontinued operations		(1,074)		(3,917)		(2,554)		(12,360)
Net income attributable to noncontrolling interests		(5,919)		(9,160)		(12,813)		(21,650)

Net income attributable to AECOM from continuing operations		88,347		48,540		171,707		79,407
Net loss attributable to AECOM from discontinued operations		(48,988)		(134,666)		(106,220)		(124,929)
Net income (loss) attributable to AECOM	$	39,359	$	(86,126)	$	65,487	$	(45,522)

Net income (loss) attributable to AECOM per share:
Basic continuing operations per share	$	0.60	$	0.31	$	1.15	$	0.50
Basic discontinued operations per share	$	(0.33)	$	(0.85)	$	(0.71)	$	(0.79)
Basic earnings per share	$	0.27	$	(0.54)	$	0.44	$	(0.29)

Diluted continuing operations per share	$	0.59	$	0.30	$	1.13	$	0.49
Diluted discontinued operations per share	$	(0.33)	$	(0.84)	$	(0.70)	$	(0.77)
Diluted earnings per share	$	0.26	$	(0.54)	$	0.43	$	(0.28)

Weighted average shares outstanding:
Basic		147,770		158,550		149,597		157,941
Diluted		149,519		160,718		151,632		160,687

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

AECOM

Consolidated Statements of Comprehensive Income (Loss)

(unaudited—in thousands)


	Three Months Ended				Six Months Ended
	March 31,		March 31,		March 31,		March 31,
	2021		2020		2021		2020

Net income (loss)	$	45,278	$	(76,966)	$	78,300	$	(23,872)

Other comprehensive income (loss), net of tax:
Net unrealized gain on derivatives, net of tax		1,064		144		1,953		3,175
Foreign currency translation adjustments		(20,065)		(91,688)		31,886		(43,482)
Pension adjustments, net of tax		42		32,311		(10,711)		22,712
Other comprehensive income (loss), net of tax		(18,959)		(59,233)		23,128		(17,595)
Comprehensive income (loss), net of tax		26,319		(136,199)		101,428		(41,467)
Noncontrolling interests in comprehensive income (loss) of consolidated subsidiaries, net of tax		(5,904)		(8,835)		(13,003)		(21,432)
Comprehensive income (loss) attributable to AECOM, net of tax	$	20,415	$	(145,034)	$	88,425	$	(62,899)

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

AECOM

Consolidated Statements of Stockholders’ Equity

(unaudited—in thousands)


					Accumulated				Total
			Additional		Other		Retained		AECOM		Non-		Total
	Common		Paid-In		Comprehensive		Earnings		Stockholders’		Controlling		Stockholders’
	Stock		Capital		Loss		(Deficits)		Equity		Interests		Equity

BALANCE AT DECEMBER 31, 2020	$	1,486	$	4,038,149	$	(876,792)	$	(254,639)	$	2,908,204	$	111,973	$	3,020,177
Net income		—		—		—		39,359		39,359		5,919		45,278
Other comprehensive loss		—		—		(18,944)		—		(18,944)		(15)		(18,959)
Issuance of stock		4		7,901		—		—		7,905		—		7,905
Repurchases of stock		(22)		(1,220)		—		(121,572)		(122,814)		—		(122,814)
Stock based compensation		—		9,259		—		—		9,259		—		9,259
Other transactions with noncontrolling interests		—		—		—		—		—		(1,727)		(1,727)
Disposal of noncontrolling interest of business sold		—		—		—		—		—		(10,969)		(10,969)
Contributions from noncontrolling interests		—		—		—		—		—		147		147
Distributions to noncontrolling interests		—		—		—		—		—		(1,597)		(1,597)
BALANCE AT MARCH 31, 2021	$	1,468	$	4,054,089	$	(895,736)	$	(336,852)	$	2,822,969	$	103,731	$	2,926,700


					Accumulated				Total
			Additional		Other		Retained		AECOM		Non-		Total
	Common		Paid-In		Comprehensive		Earnings		Stockholders’		Controlling		Stockholders’
	Stock		Capital		Loss		(Deficits)		Equity		Interests		Equity

BALANCE AT DECEMBER 31, 2019	$	1,582	$	3,956,596	$	(822,666)	$	537,490	$	3,673,002	$	186,402	$	3,859,404
Net loss		—		—		—		(86,126)		(86,126)		9,160		(76,966)
Other comprehensive loss		—		—		(58,908)		—		(58,908)		(325)		(59,233)
Issuance of stock		10		9,931		—		—		9,941		—		9,941
Repurchases of stock		(3)		(11,686)		—		—		(11,689)		—		(11,689)
Stock based compensation		—		5,282		—		—		5,282		—		5,282
Other transactions with noncontrolling interests		—		—		—		—		—		1,002		1,002
Disposal of noncontrolling interest of business sold		—		—		—		—		—		(60,089)		(60,089)
Contributions from noncontrolling interests		—		—		—		—		—		3,368		3,368
Distributions to noncontrolling interests		—		—		—		—		—		(5,497)		(5,497)
BALANCE AT MARCH 31, 2020	$	1,589	$	3,960,123	$	(881,574)	$	451,364	$	3,531,502	$	134,021	$	3,665,523

Table of Contents


					Accumulated				Total
			Additional		Other		Retained		AECOM		Non-		Total
	Common		Paid-In		Comprehensive		Earnings		Stockholders’		Controlling		Stockholders’
	Stock		Capital		Loss		(Deficits)		Equity		Interests		Equity

BALANCE AT SEPTEMBER 30, 2020	$	1,570	$	4,035,414	$	(918,674)	$	174,248	$	3,292,558	$	120,986	$	3,413,544
Net income		—		—		—		65,487		65,487		12,813		78,300
Cumulative effect of accounting standard adoption		—		—		—		(7,979)		(7,979)		—		(7,979)
Other comprehensive income		—		—		22,938		—		22,938		190		23,128
Issuance of stock		19		16,995		—		—		17,014		—		17,014
Repurchases of stock		(121)		(22,942)		—		(568,608)		(591,671)		—		(591,671)
Stock based compensation		—

Price	37.45	EPS	-1
Shares	158	P/E	-32
MCap	5,906	P/FCF	8
Net Debt	2,205	EBIT	-184
TEV	8,111	TEV/EBIT	-44
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-05-12
10-Q	2020-12-31	Filed 2021-02-10
10-K	2020-09-30	Filed 2020-11-19
10-Q	2020-06-30	Filed 2020-08-05
10-Q	2020-03-31	Filed 2020-05-06
10-Q	2019-12-31	Filed 2020-02-05
10-K	2019-09-30	Filed 2019-11-13
10-Q	2019-06-28	Filed 2019-08-07
10-Q	2019-03-29	Filed 2019-05-08
10-Q	2018-12-28	Filed 2019-02-06
10-K	2018-09-28	Filed 2018-11-13
10-Q	2018-06-29	Filed 2018-08-08
10-Q	2018-03-30	Filed 2018-05-09
10-Q	2017-12-29	Filed 2018-02-07
10-K	2017-09-29	Filed 2017-11-14
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-10
10-Q	2016-12-30	Filed 2017-02-08
10-K	2016-09-30	Filed 2016-11-16
10-Q	2016-07-01	Filed 2016-08-10
10-Q	2016-04-01	Filed 2016-05-11
10-Q	2016-01-01	Filed 2016-02-10
10-K	2015-10-02	Filed 2015-11-25
10-Q	2015-06-30	Filed 2015-08-12
10-Q	2015-04-03	Filed 2015-05-13
10-Q	2015-01-02	Filed 2015-02-11
10-K	2014-09-30	Filed 2014-11-17
10-Q	2014-06-30	Filed 2014-08-06
10-Q	2014-03-31	Filed 2014-05-07
10-Q	2013-12-31	Filed 2014-02-05
10-K	2013-09-30	Filed 2013-11-13
10-Q	2013-06-30	Filed 2013-08-07
10-Q	2013-03-31	Filed 2013-05-08
10-Q	2012-12-31	Filed 2013-02-06
10-K	2012-09-30	Filed 2012-11-19
10-Q	2012-06-30	Filed 2012-08-08
10-Q	2012-03-31	Filed 2012-05-07
10-Q	2011-12-31	Filed 2012-02-06
10-K	2011-09-30	Filed 2011-11-21
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-06
10-Q	2010-12-31	Filed 2011-02-09
10-K	2010-09-30	Filed 2010-11-22
10-Q	2010-06-30	Filed 2010-08-06
10-Q	2010-03-31	Filed 2010-05-07
10-Q	2009-12-31	Filed 2010-02-10

8-K	2021-02-16
8-K	2021-02-08
8-K	2020-12-07
8-K	2020-11-18
8-K	2020-11-16
8-K	2020-11-03
8-K	2020-10-02
8-K	2020-10-02
8-K	2020-09-22
8-K	2020-09-09
8-K	2020-08-31
8-K	2020-08-10
8-K	2020-08-04
8-K	2020-07-30
8-K	2020-07-21
8-K	2020-06-16
8-K	2020-06-15
8-K	2020-05-26
8-K	2020-05-19
8-K	2020-05-05
8-K	2020-04-03
8-K	2020-03-10
8-K	2020-01-28
8-K	2019-12-10
8-K	2019-11-27
8-K	2019-11-22
8-K	2019-11-18
8-K	2019-11-12
8-K	2019-10-12
8-K	2019-08-23
8-K	2019-08-06
8-K	2019-06-17
8-K	2019-05-08
8-K	2019-03-06
8-K	2019-02-04
8-K	2018-11-14
8-K	2018-11-12
8-K	2018-08-09
8-K	2018-08-07
8-K	2018-05-08
8-K	2018-03-13
8-K	2018-02-28
8-K	2018-02-14
8-K	2018-02-06

EX-31.1	acm-20210331xex31d1.htm
EX-31.2	acm-20210331xex31d2.htm
EX-32	acm-20210331xex32.htm

ACM 10Q Quarterly Report

AECOM Earnings 2021-03-31