- A Sustainable Future
- Letter from the CEO
- Sustainability Strategy
- Ethics and Business Conduct
- Human Rights
- Economic Performance
In 2015, the gross revenue of all CH2M companies was US$5.36 billion, excluding joint ventures. Including the CH2M portion of revenues from unconsolidated joint ventures, the total gross revenue was US$5.4 billion. Approximately 33 percent of CH2M’s 2015 revenues were from operations outside of the United States. Operational financial data are available in the company’s 10-K and relevant Security Exchange Commission (SEC) filings. After debuting on the FORTUNE 500 list at 436 in 2009, CH2M ranked 480 in 2015 (down from 437 in 2014).
CH2M is a largely employee-controlled professional engineering services firm, with an internal stock market. In the past, our common stock was only available to be owned by current and retired employees, former employees, and directors, through our various employee benefit plans. In 2015, our stockholders approved certain amendments to CH2M’s restated certificate of incorporation, so that third-party investors can invest in our common or preferred stock, including preferred stock that is convertible into common stock. In June 2015, Apollo Global Management, LLC, a large private equity investor, purchased 3.2 million shares of our Series A preferred stock, for approximately US$200 million.
In response to the challenges faced in 2014, CH2M implemented transformative changes in 2015 to make our business more focused, nimble, and efficient. We continued our restructuring program (including evaluations of certain business lines, workforce reductions, facilities consolidations, and corporate overhead cost reductions). We incurred US$60.6 million of costs related to the restructuring program during 2015. While we do not expect to incur additional restructuring costs in 2016, we expect to continue to benefit from annualized cost savings resulting from these restructuring efforts. Additionally, a write-down on a fixed-price transportation project affected our financial performance in 2015, but we are taking action to limit losses and recover costs from this project through the claims resolution process.
Economic highlights in 2015 included consistent, strong performance in our business areas of environment and nuclear; industrial and urban environments; oil, gas, and chemicals; and water. Our reduced cost structure and transformational initiatives contributed to solid, profitable financial performance in 2015. CH2M’s leadership team is committed to improved performance, and optimistic about our plans and potential to grow revenues and earnings. Moreover, we strengthened our balance sheet, cash flows, and credit capacity throughout the year, which means we increased flexibility to invest in our future.
CH2M’s financial management approach is described in the Governance section of our Web site. Portfolio risk management is conducted by CH2M’s Risk Committee, which focuses on the company’s risk at large and proactively anticipates and mitigates material risks that may affect CH2M’s business and its stockholder value. Our Audit Committee is appointed by the Governance Committee of the Board of Directors to oversee the integrity of our financial statements; the independence, qualifications, and performance of our independent auditor; and our compliance with legal and regulatory requirements. CH2M’s Compensation Committee, also appointed by the Board of Directors, has overall responsibility for approving and evaluating all compensation plans, policies, and programs as they affect the CEO and senior executives. The Compensation Committee also reviews employee benefit plans and employee stock programs.