AECOM, the former owner of what is now Department of Energy contractor Amentum, generated $3.2 billion in revenue during its second quarter of fiscal 2020, down from $3.4 billion for the same period a year earlier.
Net income for the Los Angeles-based engineering and infrastructure multinational landed at $49 million, or $0.31 per share, for the quarter ended March 31. That compared to $51 million and $0.33 per share during the second quarter of fiscal 2019, the company said Tuesday in an earnings release.
Due to the COVID-19 pandemic, 90% of AECOM’s global employees are now working remotely. “In the near term, our focus is on the health and safety of our people, on protecting jobs and on delivering for our clients,” AECOM Chairman and CEO Michael Burke said in the release.
Operating cash flow for the quarter was $299 million, according to the release. AECOM had $1.3 billion of total cash and cash equivalents, with $2.2 billion of total debt.
The company now enjoys a “record cash position,” thanks primarily to the $2.4 billion sale of the Management Services business, which closed on Jan. 31. The domestic and global business, with clients including the Energy Department and Pentagon, was sold to affiliates of New York-based investment firms Lindsay Goldberg and American Securities LLC.
AECOM immediately repaid all of its $1.3 billion of secured debt following the sale of Management Services, Burke said.
Amentum leads major joint ventures in the DOE cleanup complex, including teams leading liquid waste management at the Savannah River Site in South Carolina and operations of the Waste Isolation Pilot Plant in New Mexico.
“Discontinued operations,” the earnings line item that encompasses Management Services unit for the quarterly filing, recorded a net loss of $77 million. That was a steep drop from a net gain of $94 million for the second quarter of fiscal 2019. T
“I should note that our results in our discontinued operations in the quarter included and approximately $89 million non-cash impairment of goodwill intangible assets on certain oil and gas related businesses as a result of the dramatic fall in oil prices,” Chief Financial Officer Troy Rudd said during the company’s earnings conference call Tuesday.
