(Source: Business Wire)
URS Corporation (NYSE: URS) today reported its financial results for the second quarter of fiscal 2009, which ended on July 3, 2009. Revenues for the quarter were $2.30 billion, compared with revenues of $2.53 billion during the second quarter of 2008. URS net income was $95.1 million, compared with the $59.4 million reported in the year-ago period, and diluted earnings per share ("EPS") were $1.16, compared with $0.70 reported for the second quarter of 2008. Revenues for the first six months of 2009 were $4.82 billion, compared with revenues of $4.79 billion for the first six months of 2008. URS net income was $170.6 million, compared with the $108.8 million reported in the year-ago period, and diluted EPS was $2.08, compared with $1.29 reported for the first six months of 2008.
Financial results for the second quarter and the first six months of 2009 include net after-tax gains of $35.5 million, or $0.43 per share, and $30.6 million, or $0.37 per share, respectively, from URS' previously announced sale of its equity interest in MIBRAG mbH ("MIBRAG"), a German mining and power business. Excluding this net gain, net income for the second quarter and the first six months of 2009 was $59.6 million and $140.0 million on diluted earnings per share ("EPS") of $0.73 and $1.71, respectively. A reconciliation of net income and EPS with and without the net gain from the MIBRAG sale is attached to this release and provided in our Reconciliation Schedule available on the investor relations section of the Company's web site at http://investors.urscorp.com.
The Company's backlog was $18.1 billion at the end of the quarter, compared to $17.2 billion as of January 2, 2009, the last day of the Company's 2008 fiscal year. The Company ended the quarter with a book of business of $30.8 billion, compared with $29.1 billion at the end of fiscal 2008.
Commenting on the Company's financial results, Martin M. Koffel, Chairman and Chief Executive Officer, stated: "URS performed well in the second quarter, reflecting the diversification of our business and our focus on successful execution for our clients. Our federal market remains robust and infrastructure work is steady. Although we are seeing a build up of demand in our power and industrial and commercial sectors, contract awards in these businesses have slowed due to the effect of the economy on our customers. However, the long-term outlook for all of our markets is strong and we are well-positioned to capture new work as the economy recovers."
Business Segment Results
In addition to providing consolidated financial results, URS reports separate financial information for its three divisions: the URS Division, the EG&G Division and the Washington Division. The URS Division performs program management, planning, design and engineering, and construction management services in the federal, power, infrastructure, and industrial and commercial markets. The EG&G Division primarily serves the federal market, providing program management, systems engineering and technical assistance and operations and maintenance services to the U.S. Departments of Defense, State, Homeland Security and Treasury, NASA and other agencies. The Washington Division provides program management, planning, design and engineering, construction, operations and maintenance, and decommissioning and closure services to customers in the power, infrastructure, industrial and commercial and federal markets.
URS Division. For the second quarter of 2009, the URS Division reported revenues of $812.1 million and operating income of $70.2 million compared to revenues of $887.6 million and operating income of $67.0 million in the second quarter of 2008.
EG&G Division. For the second quarter of 2009, the EG&G Division reported revenues of $652.7 million and operating income of $38.1 million compared to revenues of $576.2 million and operating income of $32.7 million for the corresponding period in 2008.
Washington Division. For the second quarter of 2009, the Washington Division reported revenues of $850.7 million and operating income of $38.3 million compared to revenues of $1.08 billion and operating income of $55.2 million for the same period last year.
Outlook for the Remainder of Fiscal 2009
Based on the net gain on the MIBRAG sale and URS' expectations for the remainder of the year, the Company has updated its full year guidance for fiscal 2009. URS now expects that fiscal 2009 revenues will be between $9.4 and $9.8 billion, and that GAAP earnings per share will be in the range of $3.20 and $3.35, on a diluted basis, compared to previous expectations of $2.80 and $2.95. The full-year 2009 impact from the MIBRAG sale is expected to be $0.37. The Company now expects that weighted-average shares outstanding for 2009 will be approximately 82 million.
Commenting on the Company's guidance for 2009, Mr. Koffel said: "We recorded strong results in the first half of 2009, as we benefited from accelerated timing of revenues and profits on some projects, and effective cost-control management. We are making investments in the second half of the year to take advantage of the increasing business opportunities we are seeing in our public sector markets.
