Prepared Remarks: Operator. I guess first of all, Andy, just in terms of our guidance, when we look forward, typically, we have six months under our belt and we're forecasting the next six months of the year. And just so we talk about the modeling we're doing should there be a decline in revenue. Can you just help me understand what the free cash flow you think you can generate from that $700 million next year? And in fact, we're looking at opportunities where there could be consequences of the pandemic that could increase our margins. ET on Seeking Alpha AECOM 2020 Q3 - Results - Earnings Call Presentation I was going to say, so and beyond that, there are a number of programs that the governments around the world have put in place to support the population and our workforce. We will continue to prioritize maintaining excess liquidity and reiterate our long-term net leverage target range of two to 2.5 times. And the good news is we are not expecting a 10% drop in revenue in any way. And the transformation that we've been undertaken to convert to a Professional Services business has a lot of advantages that could position us quite well to consistently deliver on the financial performance we're talking about. Our discussion of margins will be on an NSR basis unless otherwise noted. But the House Democrats are moving forward on a 5-year $760 billion stimulus program. Andy, this is Randy. We began aggressively stress-testing and developing mitigation plans in early February. And so we see 75% of the earnings in 2021 converting to unlevered free cash flow for use in the business. So and that work is widely various. We are still evaluating potential candidates. Contents: Prepared Remarks. For the first half of the year, adjusted EBITDA increased by 21%. So we believe that there'll be opportunities as the market and infrastructure spend starts happening. This strong liquidity position, combined with our undrawn $1.35 billion revolving credit facility, allows us to operate with certainty. Certainly, the revenues from the MTA and Port Authority is certainly going to take a big hit here. I am very pleased with our performance in both the second quarter and the first half of the year, which reflects the benefits of the many actions we have taken over the past two and half years toward achieving our long-term financial and strategic objectives. There is certainly a run rate impact. Just curious about how you think the scenarios will play out for your fiscal year because you do have a September year-end. This is a timing-only impact, and our full year free cash flow guidance includes this collection. I will begin today's discussion with a review of our financial and strategic accomplishments. And our agility as an organization has proven to be a key competitive advantage as we quickly mobilized contingency plans for our people to support our clients in the face of unprecedented change. So for the time being, that's going to be our focus, but it is just a matter of timing, and we will then return to our stated commitment, which is maintaining our leverage target at two to 2.5 times and returning substantially all of our capital to shareholders, which means that we'll start buying stock under our existing repurchase authorization. I guess first of all, Steve, is our cadence for providing guidance certainly on the next year is when we get toward the beginning of that year. And we're going to be focused on maintaining a comfortable liquidity position until we can create confidence that the market conditions are going to stabilize and there's a clear line of sight to what the future is going to hold. L.A. construction is still continuing. And you've seen the dramatic 200 basis point increase over the past couple of years on our margins. And then beyond that, we now have a lot of confidence that because of the impact of the virus and our ability for our workforce to work remotely, it also presents additional opportunity with respect to how we would change the dynamics of how people work and the impact that would have on our real estate portfolio. Okay. We had been preparing for this for quite some time on the IT side. Yes. Just any update that you could provide on that front? Randall A. Wotring -- Chief Operating Officer. We're continuing that work. Please turn to slide 11. 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. Yes. I mean it's amazing how much money has been spent by Congress already for this crisis. I would like to direct your attention to the safe harbor statement on Page one of today's presentation. I'll take the first part of the question. Because of this and our agility in repositioning our workforce, we have retained nearly 99% of our employees, which positions us even better to respond directly as economic trends recover and client demand accelerates. We are delivering on our commitments to simplify and derisk our business and expand our margins. And so that gives you a sense of what we saw. Go ahead, your line is now open. I appreciate it. Call Participants. 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. In addition, substantial programs in our largest international markets have been put forward, including nearly $900 billion of funding across the U.K., Canada, Australia and Hong Kong. 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? But there's a few additional points I want to emphasize from today's discussion before we close out here. In addition, AECOM brought to the market two proprietary software packages built in EMEA but imported and tailored to U.S. requirements. I would say that we have confidence in the things that are within our control. And we are, as we indicated, in discussions there to exit that contract. Underlying cash generation in the quarter was mostly consistent with our expectations, and we remain confident in achieving our outlook for the full year. More. Date / Time. Got it. But I can't give you a specific time line on that, but the process is continuing. As a group, sell-side analysts predict that AECOM will post 2.6 earnings per share for the current fiscal year. We have consistently exceeded our financial targets over the past six quarters while delivering 300 basis points of margin improvement since fiscal 2018. But I don't want to leave anybody with the wrong impression here. The rest of them moved forward. This is certainly unprecedented times, but I have to say that I'm incredibly proud of how our organization has responded, and it gives me a great sense of pride to be able to work with some of the incredible employees across AECOM. As a global company, COVID-19 has been a part of our daily routine since the beginning of the year. Thank you for taking my questions. And do you think that federal help will all come in, in time to have the states avoid having any deferral of projects in a meaningful way basically over the summer in your fiscal fourth quarter? Okay. 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. Out of the shadow of AECOM, Amentum takes the spotlight. Call Participants. Your guidance is implying like $700 million of free cash flow here in the rest of the fiscal year. Sean Eastman -- KeyBanc Capital Markets -- Analyst. August 6, 2019, 8:24 PM. AECOM (ACM) CEO Mike Burke on Q3 2020 Results - Earnings Call Transcript. Finally, AECOM has a proven track record of delivering through periods of slower and negative economic activity as evidenced by our strong organic growth during the global financial crisis. AECOM (ACM) Q2 2020 Earnings Call Transcript ACM earnings call for the period ending March 31, 2020. And there certainly is an opportunity that we believe is accelerated by what the workplace of the future will look like to actually improve margins and to continue to build a path of improved productivity. Great. Sure. So far, we've seen 18 cancellations, 18 out of 50,000. There were a few factors that I want to specifically address. We have one project right now we're doing down in Florida. So those are the that's the principal lever that we have. Your next question comes from the line of Michael Dudas with Vertical Research. The construction management business, first of all, it's more diversified today than it's ever been. And so when we look at all of those together, it starts to look a little bit like what we saw after the global financial crisis in '07, '08 and '09. News. Sure. This allows us to quickly respond to changes in the market. Is that sustainable as you look to the back half of the year just given we don't have history there in terms of how the business performs on a quarterly basis? ET, Good morning, and welcome to the AECOM Second Quarter 2020 Conference Call. In April, we won more than $200 million of work to deliver thousands of hospital beds in short order, and we are engaged with clients globally to provide additional services, including developing return-to-work strategies for our clients. Logo of jester cap with thought bubble. Market data powered by FactSet and Web Financial Group. The governor has said they expect to start back by May 15, although they've asked us to put forth a plan to start even earlier, which we're working on. Price US$ 54.00 | Buy this Report Now. Your next question comes from the line of Jamie Cook with Credit Suisse. Second, we incurred cash restructuring costs of approximately $40 million in the quarter as part of our strategic actions that resulted in substantial margin improvement for six consecutive quarters. AECOM Technology Corporation's (ACM) CEO Mike Burke on Q4 2018 Results - Earnings Call Transcript Nov. 12, 2018 AECOM Technology Corporation 2018 Q4 - Results - Earnings Call Slides And how does it impact on what you do and how those agencies use AECOM to work through that? So that characteristic remains unchanged. These type of projects are precisely where AECOM excels as evidenced by our number one ranking in the transportation and general building design markets, which was reaffirmed last week by ENR. It allows NEPA to be performed better, faster, cheaper with greater margins. 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