AECOM Technology Corporation (AECOM) has reported revenues of $1.4 billion for the first quarter of fiscal 2009, up 35%, compared with the revenues of $1.1 billion in the year-ago quarter. It has also reported a net income of $40.9 million, or $0.38 per diluted share, for the first quarter of fiscal 2009, compared with the net income of $29.5 million, or $0.29 per diluted share, in the year-ago quarter.
The net income amount does not include $0.4 million of earnings from discontinued operations linked with non-strategic assets acquired as part of the 2008 Earth Tech transaction, which AECOM plans to divest. Operating income for the first quarter improved 57% year over year to $69.7 million.
AECOM’s gross revenue includes amount of pass-through costs and, therefore, revenue, net of other direct costs, which is a non-GAAP measure. Gross revenue also provides a valuable perspective on its business results. AECOM’s revenue, net of other direct costs, increased 32% compared to the year-ago quarter, to $889.5 million.
In addition to providing consolidated financial results, AECOM says separate financial information for its two segments:
Professional Technical Services (PTS) and Management Support Services (MSS).
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 first quarter of fiscal year 2009, the PTS segment reported revenue of $1.2 billion and operating income of $76.9 million, compared with the revenue of $893.4 million and operating income of $53.4 million in the year-ago quarter. It represents a 38% increase in revenue and a 44% increase in operating income year over year. PTS revenue, net of other direct costs, improved 30% to $846 million.
The MSS segment will be providing program and facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, primarily for agencies of the US government.
For the first quarter of fiscal year 2009, the MSS segment posted revenue of $223 million and operating income of $10.0 million, compared with the revenue of $187 million and operating income of $3.4 million in the year-ago quarter. It represents a 19% increase in revenue and a 194% increase in operating income year over year. The year over year comparison for MSS is impacted by an adjustment in the year-ago quarter that lowered award fees. MSS revenue, net of other direct costs, increased 60% to $43 million.
AECOM has said backlog totaling $9.0 billion at December 31, 2008, a 32% increase year over year.
“We continued to effectively execute our growth strategy across our end markets and geographies during the first quarter,” said Michael S. Burke, AECOM executive vice president and chief financial officer.
“Our continued positive trends in margin improvement, where we saw a 107-basis-point improvement, and backlog growth, where we achieved a $2.2-billion increase in our year-over-year backlog, indicate continued solid momentum in our global end markets.”
“Our solid first-quarter results reflect the benefits of AECOM’s diversified global business model,” said John M Dionisio, AECOM president and chief executive officer.
“During the quarter, we continued to expand our business in spite of a slowing demand in some of our commercial and private facilities markets. Overall, we saw continued strength and growth in our U.S. businesses as well as our non-U.S. operations. Looking forward, we believe that AECOM is well positioned to benefit from the implementation of stimulus programs around the world.”
“We saw continued demand for our services globally throughout the infrastructure market, and this was reflected in our backlog growth during the quarter,” said Dionisio. “Projects such as our work in support of Zayed University’s new campus in Abu Dhabi, major transit expansions in San Francisco and Toronto, and five task order wins for the U.S. Air Force’s Contract Field Teams program, highlight the breadth and diversification of our success.”