And almost all of the projects that are not operating are paying us our general conditions, which covers our cost on those projects because the clients want to keep our teams at the ready to jump back in when construction is revived. Logo of jester cap with thought bubble. And then in terms of what we're seeing as a result of the pandemic and government stimulus, we haven't planned any of the stimulus into our guidance. The first is the virtual consultation software that Mike talked about that let us respond to U.S. federal asks to streamline permitting processes. We support change in infrastructure, and that is coming and will be accelerated by the impact of the pandemic. It's all being done in a collaborative way. Good morning, afternoon, everybody. We've got a lot of confidence in next year based on the backlog we have, the continued very high win rates and the expanse of that backlog. AECOM is a Fortune 500 firm with revenue of approximately $20.2 billion during fiscal year 2018. I mean it's amazing how much money has been spent by Congress already for this crisis. Sure. So let me kick that off, and then I'll ask Randy to talk about the IT investments we've made because it's been such a big facilitator of this. During the same period in the prior year, the firm earned $0.79 earnings per share. We completed the $2.4 billion sale of Management Services business in January. This performance reflects continued underlying strength in our core transportation and water markets and in our construction management business. We're not seeing time lines move out. So maybe, Randy, you could give us a little overview on what we've done on the IT side. Yes. I would like to turn the call over to Will Gabrielski, Senior Vice President, Investor Relations. Free cash flow was a use of $313 million. With these actions, we achieved our top priority: keeping our key assets, the many talented people across our organization safe, employed and highly engaged with clients. While we lost 10 working days in Mainland China in February, we quickly called upon our resilience, IT and HR teams to ensure that our employees were safe and accounted for, and we took immediate actions to ensure business continuity. And so we feel a great sense of confidence for FY 2020 and FY 2021. So it's a combination of the things that we've been talking about consistently for the last few quarters, which is improving our real estate profile, taking advantage of our design centers and our shared service centers. Prior to the impacts of COVID-19, state and local tax receipts were trending positively through April, which provided for a solid base of project funding. Good morning and welcome to the AECOM first-quarter 2019 earnings conference call. As we said, we currently have a hiring freeze in place. So again, supporting that bridge, in fact, is having us actually collect beyond what we expected in April, so supporting an improvement in working capital in the second half of the year. Based on our global experience with COVID-19, we expect that shelter-in-place orders and construction shutdowns in the Americas and EMEA regions will begin to ease in the third quarter. Your line is open. Mike, can you give us more color on your construction management business? Hi. Importantly, as our performance in Professional Services business underscores, we are benefiting from our lower risk profile, which validates our strategy. As a global company, COVID-19 has been a part of our daily routine since the beginning of the year. Finally, the MS business delivered cash flow below our expectations for January, resulting in an approximately $130 million impact. To the extent you can bridge us back between just underlying AECOM free cash flow, any discrete items helping you get back there and then, of course, some of the benefits from some of those stimulus programs that are going to help in the back half as well. Thanks, Mike. Prepared Remarks: Operator. Third, most of our work has continued unabated. So all of our employees have videoconferencing capability and extraordinary collaboration tools that allow them to carry on their work. Look, I think I don't believe at this point in time, you can be overly conservative in terms of liquidity. But we've learned at scale there, and we've deployed those learnings around the world, which are helping us maintain productivity in other markets that have gone to remote workforce. The construction management business, first of all, it's more diversified today than it's ever been. The state departments of transportation are asking for about $50 billion of direct funding for transportation in the states. The rest of them moved forward. We have repaid all of our secured debt, and we exited the second quarter with a $1.3 billion cash balance and net leverage of 1.2 times. Randall A. Wotring -- Chief Operating Officer. Lara Poloni - President. Okay. We have one project right now we're doing down in Florida. Again, there's certainly, the big question is when that will happen. So we have done a lot of modeling on those type of questions. And it's driven by, first of all, just the earnings performance in the second half of the year. Okay. As a result, our guidance assumes that economic activity bottoms in the third quarter and that there are no material project delays or deferrals in the fourth quarter. So we're not seeing projects stop except for a few that I mentioned. Yes. So that's the piece that we have to pay a little more attention to as we work through Q3 and Q4. Turning to our international segment. Q1 2020 AECOM Earnings Call...finance yahoo. And again, to your point about what we're seeing in the marketplace is we certainly have been active in helping local governments, trying to help people through the impact of the pandemic and supporting healthcare initiatives and supporting just governments and figuring out how they work their way through this, so project management types of projects. We've certainly transformed our balance sheet after the sale of the Management Services business. Thanks, good morning guys. Sure. One of the significant items that has an impact on that obviously is compensation. Beginning today's presentation is Mike Burke, AECOM's Chairman and Chief Executive Officer. This allows us to quickly respond to changes in the market. Company Profile. Looking ahead, our confidence in achieving our financial targets is underscored by the strong year-to-date performance as well as certain attributes inherent in our Professional Services business that position us well during periods of uncertainty. Will Gabrielski -- Vice President of Investor Relations. That's probably more like a June or July time frame. Mike, so that all sounds pretty good. I know you've talked a handful of times on the call about the $500 billion and $700 billion. Well, thank you, everybody, for joining today. In New York, there has been some nonessential construction that is put on halt. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. First and foremost, we are in a fortunate position with excess liquidity at a time when liquidity is scarce. We didn't stop when we got through that first tranche, and we're not going to stop as we get through this next tranche of margin improvement opportunities. But we're certainly within the range. In our construction management business, more than 85% of our projects are continuing to move forward, including more than 70% in New York despite temporary nonessential construction shutdowns. We have won hundreds of millions of dollars of work already. I think the $700 million was I was talking about the EBITDA figure with which you can convert to free cash flow. We do make accruals during the course of the year for some of our compensation that gets paid out the following the first quarter of the following year. Yes. W. Troy Rudd -- Executive Vice President and Chief Financial Officer. Thank you, Will. There is just a natural kind of unwind of working capital in the second half of the year based on increased activity. Nobody is traveling, and that does have the benefit to your P&L. AECOM (ACM) CEO Mike Burke on Q3 2020 Results - Earnings Call Transcript. However, we expect to recover this timing-related impact in the third quarter through a favorable net working capital purchase price adjustment. Underpinning this strong performance was continued margin expansion of 200 basis points in the quarter. This includes a more than $700 billion infrastructure investment program in the U.K., along with approximately $100 billion of stimulus funding in Australia and Hong Kong. This was contemplated in our original guidance for the year. So the bulk of our travel costs are actually funded by our clients. Products. I wanted to ask, Mike, since Asia was first in, first out, what kind of demand destruction did you see there? Good morning, and welcome to AECOM Fourth Quarter 2018 Earnings Conference Call. And so we've seen accelerations in Hong Kong, Australia and even Canada. Is there any stranded costs that we should be considering cash to fund some discontinued ops that we should be aware of, I guess, just to help us get a sense of where your balance sheet and leverage is now and maybe where it could look like in 2021? Aecom Technology (ACM) Tops Q3 Earnings and Revenue Estimates. Just trying to get comfortable on the second half ramp, and you guys had mentioned there would be some tailwinds there. We will continue to prioritize maintaining excess liquidity and reiterate our long-term net leverage target range of two to 2.5 times. Markets across Asia are beginning to normalize, and restrictions on movement are being reduced. So all told, we see there being potentially up to $100 million tailwind just from government programs that would support our view of being within that guidance range. But I don't want to leave anybody with the wrong impression here. Secondly, the projects that as you heard us say, 80-plus percent of our projects are still operating today. In fact, we've got 50,000 projects going on at any one point in time around the world. So again, I mean in this case, our IT tools not only let us continue to perform and work effectively from home but we believe give us a differentiator in the near term and in the future. Tuesday, Aug 6, 2019 at 12:00 PM EDT Webcast Presentation. Your line is open. Andy, this is Randy. I noticed they were not in the slide deck this quarter. This includes a goal of achieving a 20% reduction in emissions by 2025 as well as a 10% reduction in emissions across our supply chain. And one of those is, again, remote working and rethinking your real estate portfolio. Beginning in February, we built robust mitigation plans to assess different potential virus durations and impacts, put in place a freeze on new hiring and discretionary spending and instituted a global travel freeze. Got it. Please turn to slide 11. With that, operator, we're now ready for questions. We're continuing that work. Zacks Investment Research - 2 months ago. So that's really important. Or is the Board thinking it makes sense to keep you there indefinitely in particular in an environment like this given your history with the company? But we have modeled it, of course, as we do a lot of modeling these days. Aviation was formerly 1% of our business in CM. First, following the completion of the MS sale in January, we terminated the receivable sales program associated with that business, which resulted in a $180 million impact to cash flow. Realogy Holdings Corp. (NYSE: RLGY) is the leading and most integrated provider of U.S. residential real estate services, encompassing franchise, brokerage, relocation, and title and settlement businesses as well as a mortgage joint venture. As a result, we have transformed our balance sheet and capital structure. But then just given the nature of the workforce, we have the ability to, again, adjust if there are dramatic changes in terms of workloads and rebalance work. As I look across the company, our strategic and financial position has never been stronger. I was just going to reinforce what Mike said, which is what we've experienced is the pandemic is creating opportunities for actually to accelerate some of the trends that were naturally taking place in the marketplace. And Jamie, the restructuring actions that we've taken beginning last year and we continue to take this year what those are that's what's driving the margin improvement. Disaster response work, it's field hospitals, treatment centers, medical stockpile facilities, global supply chain-type activity. And in fact, we're looking at opportunities where there could be consequences of the pandemic that could increase our margins. But maybe, Troy, you want to just touch on some of the variable cost levers that we pull in those scenarios? Okay. Thank you. We're about the same place we were. In that market, we went into this year expecting a double-digit decline in revenue going into the year because of some of the challenges and protests in Hong Kong. And two months of those results, I'm going to call them March and April, have us operating in the pandemic environment that we're in. That's going to be at this point, I'd say it's less than a percentage point of our entire NSR. Your next question comes from the line of Michael Dudas with Vertical Research. And that's light years ahead of anything in the market. And at least according to the Bloomberg Government report, we've captured about 25% of all the COVID-related federal dollars within our industry, and we're the number one in our industry in winning COVID-related work. I should note that excluding the impact of elevated levels of storm recovery work from the prior year, organic NSR in our design business increased by 2%. So we're focused on the right markets that had strength coming into it. Perfect, thank you. We've certainly won a lot of work during the last few months, and that has supported our April results. The Management Services business, along with our at-risk, self-perform construction businesses that we intend to exit, are classified as discontinued operations in our financial statements. Please turn to slide nine. That was really helpful, Troy. Additionally, state and local clients are bracing for steep tax revenue declines. And again, one of the things that we spend a lot of time on in February, and we still continue to do this almost on a weekly basis, is making sure that we keep updating and stress-testing what we think is the range of outcomes for the business. And it's just been a bit slowed down and a little reluctant to make a precipitous change during the challenging times. And specifically, what I'm referring to, as we've gone through the work-from-home remote working process where 90% of our people are working remotely, we have seen an employee engagement that is higher than it was working in the office. And if we take just the low end of your ranges this year, the $100 million of free cash flow and the $700 million of EBITDA, let's say you don't grow EBITDA next year and you hold the line at $700 million. Organic NSR declined by 2%. Our adjusted operating margin for the second quarter was 5.9%, a 240 basis point increase over the prior year. Well, there's certainly a lot of momentum. Mike, that's helpful. Certainly, the revenues from the MTA and Port Authority is certainly going to take a big hit here. We are positioning to capitalize on substantial stimulus and emergency COVID-19 response efforts in our international markets. As I mentioned, we have about 23% of our NSR comes from state and local governments. Event Details. Sean, was your question relative to stimulus limited to cash flow or was it a broader question? So we're making progress, and it'll likely be happen in lumps, but we expect to make that happen over the as soon as the market opens up. Yes. Michael Dudas -- Vertical Research -- Analyst. We are also continuing to progress on our plan to exit our remaining self-perform at-risk construction businesses. It also provides benefit or think about it as a lever that has an impact on ultimately our results. In Asia, nearly half of our offices were closed, and 90% of our workforce was working remotely at peak. In most cases, these services can be delivered uninterrupted while working remotely, supported by our long-running investments in technology and innovation. Good morning, and welcome to the AECOM's Third Quarter 2019 Earnings Conference Call. 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