URS Corporation (NYSE:URS) Q2 2015 Earnings Conference Call - Final Transcript

May 12, 2015 • 12:00 pm ET

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URS Corporation (NYSE:URS) Q2 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good morning and welcome to AECOM second-quarter 2015 earnings conference call. I would like to inform all participants this call is being recorded at the request of AECOM. This broadcast is the copyrighted property of AECOM. Any rebroadcast of this information in whole or in part without the prior written permission of AECOM is prohibited. As a reminder, AECOM is also simulcasting this presentation with slides at the investor section at www.AECOM.com.

(Operator Instructions) I would like to turn the call over to Will Gabrielski, Vice President Investor Relations.

Executive
Will Gabrielski

Thank you, operator. Before reviewing our fiscal 2015 second-quarter results, I would like to direct you to the Safe Harbor statement on page 2 of today's presentation.

(Forward Looking Statements)

We are using certain non-GAAP financial measures as references in the presentation.

The appropriate GAAP financial reconciliations are incorporated into our press release which is posted on our website.

Please also note that the percentages refer to year-over-year progress except where otherwise noted. Additionally, we may refer to certain metrics on a constant currency basis. In addition, our discussion of financial results and our outlook will exclude the impact of acquisition and integration related expenses, financing charges in interest expense and the amortization of intangible assets unless otherwise noted.

Please turn to slide three. Beginning today's presentation is Mike Burke, AECOM's Chairman and Chief Executive Officer. Mike?

Executive
Mike Burke

Thank you, Will. Welcome everyone to our fiscal second-quarter earnings call. Joining me today is Steve Kadenacy, President and Chief Financial Officer. I will begin with an overview of AECOM's results for the first quarter. Then Steve will review our financial performance in greater detail and provide an update on our full-year outlook. I will conclude with additional remarks on the trends across our diverse business.

Please turn to slide four. Our second-quarter financial results beat our expectations and the forecast we provided last quarter and we are on track for the full year. Organic revenue grew nearly 10% at constant currency marking our highest growth rate since 2009. The result was driven by 62% growth in our Construction Services segment and a return to growth in DCS. We delivered $4.6 billion of wins and our backlog grew to nearly $41 billion. We also delivered on our commitment to pay down debt with our strong cash generation.

Uneven global economic activity creates both opportunities and challenges. However, our diversification allows us to deliver consistent financial performance as evidenced by our solid second-quarter results. We are particularly proud of this quarter considering the enormous integration efforts underway. We are also pleased with the progress of our integration and cost synergy efforts.I will now turn the call over to Steve who will discuss the quarter's financial performance in greater detail.

Executive
Steve Kadenacy

Thanks, Mike. Please turn to slide five. I want to remind everyone that my comments today speak to our adjusted results unless otherwise noted. Before beginning, I would like to provide some additional background on the impact of our financial results from acquisition and integration related accounting