AECOM Technology Corporation
) reported fourth-quarter fiscal 2013 net income of $76.6 million
or 77 cents per share, falling short of the Zacks Consensus
Estimate of 79 cents per share. However, the net income was a
significant improvement from a net loss of $224.9 million or
$2.05 per share incurred in the prior-year quarter.
AECOM reported fiscal 2013 net income at $239.2 million or
$2.35 cents a share as compared to the net loss of $58.6 million
or 52 cents a share in fiscal 2012.
Growth in the company's core business primarily drove the
earnings. An absence of goodwill impairment charges that had
impacted the company's year-ago results also benefited earnings
for the reported quarter. AECOM's strategies to improve account
management and capital allocation were the key drivers for the
year-over-year improvement. In addition, AECOM has made
significant amount of share repurchases and has also made some
strategically significant acquisitions in the quarter.
AECOM reported total revenue of $2,079.1 million, marginally
down 0.2% year over year. The revenues were primarily impacted by
the dismal performance of the Management Support Services segment
in the quarter. However, the increased demand for the company's
integrated service platform and global expertise partially offset
the decline. The company's performance in Europe, Asia and the
Americas also remained positive with new orders aggregating $1.8
billion in the quarter. Revenues beat the Zacks Consensus
Estimate of $2074 million by 0.2%.
The company's revenue for fiscal 2013 declined 0.8% to
$8,153.5 million, compared to the last fiscal's figure of
Professional Technical Services (PTS)
revenues in the quarter were $1.9 billion, up 2% on
year-over-year basis. However, the net service revenue (NSR)
decreased 5.8% to $1.1 billion due to decreased NSR demands from
Americas and Australia despite gains from Europe and the emerging
nations like Middle East and Asia. The segments construction
services performed well in the quarter.
Management Support Services (MSS)
reported revenues of $220 million, which declined 15.6% year over
year. The decline was due to the project repositioning initiative
taken by the company to transition itself from lower-margin
projects to higher-margin services.
Income and Expenses
The company's operating income was $123.0 million in the
quarter compared to a loss of $199 million in the prior-year
quarter. However, gross margin fell to 6.7% from 6.9% in the
The company's general and administration expense was $23.9
million versus $17.7 million in the prior-year quarter.
Balance Sheet and Cash Flow
Cash and cash equivalents were $600.7 million at the
quarter-end, compared with $593.8 million at the end of Sep 30,
2012. AECOM's total debt increased to $1.2 billion at the end of
fiscal 2013 compared with $1.1 billion in the last year. The
company reported total equity of $2.0 billion, compared with $2.2
billion at the end of fiscal 2012.
Cash flow from operating activities declined to $160.1 million
from $226.3 million in the prior-year quarter. The cash flow for
fiscal 2013 was $408.6 million, down from $433.3 million in the
last year. The free cash flow for fiscal 2013 also declined to
$356.5 million from $370.5 million in previous fiscal.
AECOM repurchased 2 million shares for $61.6 million in the
fourth quarter to bring the tally to 14.4 million shares for $373
million for fiscal 2013. At the end of the year, the company had
$365 million worth share repurchase authorization.
For fiscal 2014, AECOM projects earnings to be in the range of
$2.35 to $2.45 per share. The company expects the trend in fiscal
2013 to continue in first quarter of 2014.
AECOM reaffirmed its earlier guidance for cumulative free cash
flow for fiscal 2013 to fiscal 2017 to be in the range of $1.3
billion to $1.8 billion.
AECOM currently carries a Zacks Rank #4 (Sell). Other
better-placed stocks worth considering at the moment include
Jiangsu Expressway Co. Ltd.
Jacobs Engineering Group Inc.
Quanta Services, Inc.
). All three carry a Zacks Rank #2 (Buy).
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