Evolving Our AECOM
Total Page:16
File Type:pdf, Size:1020Kb
Evolving Our AECOM 2012Annual Report Fiscal year 2012 marked a period of continued revenue growth as we serviced our clients’ evolving needs worldwide and maintained an intense focus on financial performance and operational excellence. Our mix of global coverage, local operations, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural, and social environments still differentiates as we strive to make the world a better place. Growth and financial performance During fiscal year 2012, AECOM As we continue to focus on shareholder continued to evolve our services, value during fiscal year 2013, our capital organizational structure and capital allocation priorities are to: allocation strategy to remain a trusted partner to our clients in more than 140 - Pursue organic and acquisitive investments that further our strategy countries and a valuable investment to and present attractive long-term our shareholders. We have firmly returns. We will continue to invest positioned ourselves as thought leaders in our existing business and pursue within our own industry and continue to acquisitions where it makes sense achieve professional success and to add new services or further our growth around the globe. geographic reach. Despite key macroeconomic challenges - Maintain ample liquidity and a in various parts of the world, our vision strong balance sheet. We had a and diversified growth strategy have record free cash flow of US$370 allowed us to bolster our strong million, equivalent to US$3.29 positions in the transportation, per share, for fiscal year 2012. Moreover, our total debt decreased facilities, government services, by 8 percent from US$1.16 billion to environment, and energy markets. US$1.07 billion, and net debt, which equals short- and long-term debt Our operating success is built upon our minus cash and cash equivalents, intense client focus and effective decreased by 33 percent from decision making, which position us US$706 million to US$476 million. well for the future. For fiscal year 2012, our revenue grew 2.2 percent - Deleverage when appropriate: A from US$8.0 billion to US $8.2 billion, strong example of this tenet in and our backlog expanded 3 percent action is our repayment of US$179 from US$15.6 billion to US$16.0 billion. million in debt during the second half of fiscal year 2012. In connection with our annual goodwill - Opportunistically repurchase impairment testing, for the fiscal year stock: During the 2012 fiscal year, 2012, we did record an impairment we completed our first share- charge of US$336 million, which repurchase authorization of $200 caused our earnings to be negative for million, and our Board of Directors the year. This write-down, however, authorized another $300 million was a non-cash item that has no worth of repurchases during August. impact on our liquidity, cash flow from All told, during the year, we spent operations or financial covenants. US$160 million to repurchase 7.9 million shares. Clearly, our share In addition to continuing to integrate repurchase program complements our previous acquisitions, which grow our strategy for balanced growth our footprint in new service areas and/ and sustainable returns. or geographic regions, during fiscal year 2012 we were joined by CEC, a Taiwan-based engineering and environmental services firm. Positioning for Success “Our AECOM” Today, AECOM is a global enterprise, relationships with Meridiam, which Since the founding of AECOM in 1990, with more than 60 percent of our work assists in the funding of public- we have built our company on a solid being done outside the United States. private partnerships (P3s); and the foundation of diversification and sound Our teams of highly skilled creation of AECOM Capital — a fund Core Values that have guided our professionals work to enhance that is intended to help jumpstart business ever since. Our unwavering P3 projects that are smaller in scope AECOM’s diversified global growth commitment to these Core Values in that those aided by Meridiam. strategy, which is the hallmark of our everything we do establishes our business model. This strategy positions - Increase our penetration of the top commitment to never compromise our us well to take advantage of private and multi-national clients. integrity. For this reason, we were opportunities in high-growth end Our diversification efforts enable us named by Ethisphere magazine as one of markets and geographies, including to be a desired partner with these key the World’s Most Ethical Companies for naturally resource rich areas. private sector clients. 2012 and 2011. Given our intense focus on improving our - Increase our business in emerging Throughout fiscal year 2012, we strove profitability and our value as an markets. Africa, China, Eastern to align our mission, culture, spirit and Europe, India, Latin America and the investment, as well as expanding our passion across AECOM. We have worked Middle East remain areas of focus services and geographic reach, we have hard to further intensify our client focus, for us. In fact, since the beginning of identified six long-term objectives: fiscal year 2013, we have completed streamline our internal processes and the acquisition of BKS in Africa, manage our costs, and will continue to - Enhance shareholder value. We continue which expands our core services in do so during 2013. These efforts benefit to advance our capital-allocation the region, and KPK in Asia, which the professional development and strategy and financial discipline. enables us to now offer our project, morale of our employees as well as the - Increase profit margins. Evolve cost, consulting services throughout fiscal health of our firm. our services to improve our overall the continent. profitability, including the expansion There is no question that our industry is of our construction management and rapidly changing, but as AECOM moves oil and gas operations. into the next fiscal year, we will continue to foster our commitment to the highest - Advance our organic growth. We performance standards. We believe our intend to further integrate and invest long term strategy of increasing in our existing service offerings as sustainable returns on investments and part of our end market focus. maximizing shareholder value will only - Adjust our mix of public and private fuel success in the long run. sector clients. This objective is further bolstered by our knowledge of alternative delivery methods; our Social Responsibility Safety Good corporate citizenship is a crucial Safety is fundamental to our everyday - The San Francisco Public Utility part of AECOM’s business operations. culture. Whether working in the office or Commission was honored with the Our global policies, practices and at a project site, we are dedicated to 2012 Exceptional Performance in responsibilities reflect our commitment operating, and maintaining our projects, Safety recognition by the American to doing what is right. During 2012, the in a safe manner. Avidly championed by Public Works Association. AECOM oversees the safety performance collective energy and efforts of our our leaders, our commitments are for the commission’s Water System employees around the world showed outlined in our Safety, Health and Improvement Program, which has their commitment to care for the Environment (SH&E) policy statement been coined as one of the largest and communities where they live and work. and guiding principles. The policy most complex construction programs Our people gave their time and financial statement establishes and maintains a in the United States. resources to Engineers Without framework for our overall SH&E Borders, Water for People, the program. This drives us to proactively - Kristine Brobst, our safety, health International Committee of the Red incorporate these safety standards into and environment manager based in Cross and its affiliates around the everything we do. Pittsburgh, Pennsylvania, United States, was named as one of the world, additional natural disaster relief 2012 National Safety Council Rising efforts and a variety of other We believe that there’s no “one size fits all” approach. As a global company, we Stars of Safety. This is the third philanthropic organizations. consecutive year an AECOM employee realize that each region is different and has received this title. our regional safety leaders ensure that safety remains a priority everywhere we - AECOM’s Steve Wood, director for operate. We abide by all applicable SH&E in the Middle East, was elected safety rules and regulations — no chairman of the Middle East and matter the location — and encourage North Africa chapter of the National our employees to make Construction Safety Executives. recommendations for improvements. AECOM continues to be positioned well During fiscal year 2012, we saw many to meet our clients’ evolving needs. As successes with our safety programs as we move forward, we will remain well as external recognition of our committed to delivering excellent efforts. Following are some highlights: service and innovative solutions to our clients, being the place to grow professionally for employees, and maintaining our status as a valuable investment for our shareholders. Our capabilities Architecture Government Building Engineering Mining Construction Services Oil + Gas Design + Planning Program, Cost, Consultancy Economics Program Management Energy Transportation Environment Water UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM