logo
  Join        Login             Stock Quote

URS Corporation Reports Fiscal Year 2011 Results

Monday, February 27, 2012 4:28 PM


URS Corporation (NYSE: URS) today reported its financial results for the fiscal year ended December 30, 2011. Revenues were $9.55 billion, compared with $9.18 billion in fiscal 2010. URS reported a net loss for fiscal 2011 of $465.8 million and diluted earnings per share ("EPS") of $(6.03). For fiscal 2010, URS reported net income of $287.9 million and diluted EPS of $3.54. For the purpose of calculating diluted EPS, weighted-average shares outstanding were 77.3 million and 81.3 million for fiscal years 2011 and 2010, respectively.

The Company's results for fiscal 2011 include a non-cash, after-tax charge for the impairment of goodwill of $732.2 million, or $9.46 per share. The goodwill impairment charge was primarily driven by adverse stock market conditions that caused a decrease in the Company's stock price leading up to September 30, 2011, the date on which URS conducted its interim test of the fair values of its net assets versus their book values as required by accounting standards. The charge had no effect on URS' business operations, cash balances or operating cash flows.

URS' fiscal 2011 results also include a non-cash, after-tax charge of $1.7 million, or $0.02 per share, related to the retirement of the Company's prior credit facility; a $5.5 million, or $ 0.07 per share, after-tax charge related to the restructuring of URS' international operations in Europe; and a $0.6 million, or $0.01 per share, after-tax charge related to acquisition expenses. Excluding these charges, URS' fiscal 2011 net income would have been $274.2 million and diluted EPS would have been $3.53.

URS' results for fiscal 2010 included a non-cash, after-tax charge of $11.9 million, or $0.15 per share, related to the acquisition of the Scott Wilson Group plc. ("Scott Wilson") and a non-cash, after-tax charge of $9.3 million, or $ 0.11 per share, related to Scott Wilson's integration with URS' existing U.K. and European business. URS completed its acquisition of Scott Wilson in September 2010. Excluding these charges, URS' diluted EPS for fiscal 2010 would have been $3.80.

URS' results for 2010 also included a net tax benefit of $42.1 million, or $0.52 per share, resulting from the Company's decision to indefinitely reinvest all of the earnings of its international operations as part of its strategy to expand its business globally. As a result of this decision, URS' tax rate for 2010 was approximately 24.8%.

Without this net tax benefit and the Scott Wilson acquisition and integration costs noted above, URS' diluted EPS for fiscal 2010 would have been $3.28.

Tables reconciling net income and EPS for the Company, and operating income for each of the Company's operating segments, for the fourth quarter and full fiscal year of 2011 and 2010, excluding the charges, net tax benefit, costs and adjustments noted above and below, to generally accepted accounting principles ("GAAP") results are included in the Reconciliation Schedule of GAAP to Non-GAAP Measures attached to this release and available on the investor relations section of the Company's website at: www.urs.com.

Commenting on the Company's financial results, Martin M. Koffel, Chairman and Chief Executive Officer, stated: "URS' North American operations performed well in 2011, with all of our U.S. and Canadian operations either meeting or exceeding our expectations. While we generate the significant majority of our revenues in North America, our overall results for 2011 were affected by weakness in certain international markets, particularly Europe and the Middle East. During the fourth quarter, we reduced our workforce and consolidated systems and offices as a result of the turbulent economic conditions in these regions."

Mr. Koffel continued: "Our outlook for 2012 reflects favorable conditions in each of our four market sectors – federal, infrastructure, power, and industrial and commercial – particularly in North America. In addition, while not included in our 2012 guidance, our proposed acquisition of Flint Energy Services should position us well in attractive segments of the oil and gas industry, especially in North American oil, oil sands and gas. We expect to complete the acquisition in the second quarter of this year."

The Company's backlog as of December 30, 2011 was $14.3 billion, compared to $16.6 billion as of December 31, 2010, the last day of the Company's 2010 fiscal year. The Company's book of business at the end of the year was $27.0 billion, compared to $29.1 billion at the end of 2010. URS noted that $1.2 billion of the reduction in its fiscal 2011 backlog reflects the successful early completion of key milestones on three federal contracts.

Quarterly Dividend

URS also announced that its Board of Directors has approved the initiation of a regular quarterly cash dividend program. The initial quarterly cash dividend of $0.20 per common share will be paid on April 6, 2012 to stockholders of record as of March 16, 2012. Future declarations of quarterly dividends are subject to the approval of URS' Board of Directors.

H. Thomas Hicks, Chief Financial Officer of URS, said, "Given our strong financial position, our consistent ability to generate substantial cash flow, and our favorable outlook for the business, we are confident that we can continue to invest in growing the Company while returning excess cash to our stockholders through a quarterly dividend. The dividend is indicative of the Company's commitment to building value for stockholders."

Fourth Quarter 2011 Results

For the fourth quarter of fiscal 2011, the Company reported revenues of $2.39 billion, compared to revenues of $2.38 billion in the fourth quarter of 2010. URS reported net income for the fourth quarter of 2011 of $28.4 million, or $0.37 per share, compared with net income of $60.0 million, or $0.75 per share, in the fourth quarter of 2010.

The Company's results for the fourth quarter of fiscal 2011 include a non-cash, after-tax charge for the impairment of goodwill of $32.9 million, or $0.43 per share to finalize the estimated goodwill impairment charge the Company recorded in the third quarter. URS' fourth quarter results also include the non-cash, after-tax charge of $1.7 million, or $0.02 per share, related to the retirement of the Company's prior credit facility noted above, and the $5.5 million, or $0.07 per share, after-tax charge related to the restructuring of URS' international operations in Europe, also noted above. Excluding these charges, URS' fourth quarter fiscal 2011 net income would have been $68.5 million and diluted EPS would have been $0.89.

The Company's results for the fourth quarter of fiscal 2010 included an after-tax charge of $9.3 million, or $0.12 per share, related to Scott Wilson's integration with URS' existing U.K. and European business. Excluding this charge, URS' fourth quarter fiscal 2010 net income would have been $69.3 million and diluted EPS would have been $0.87.

Fiscal 2012 Outlook

On February 21, 2012, URS announced its outlook for fiscal 2012, excluding any effect from its proposed acquisition of Flint Energy Services Ltd. As announced, URS expects its standalone fiscal 2012 revenues will be between $9.9 billion and $10.1 billion, net income will be between $292 and $300 million and EPS will be between $3.95 and $4.05. The Company's fully diluted weighted-average shares outstanding for 2012 are expected to be approximately 74.0 million shares.

Webcast Information

URS will host a dial-in conference call on Monday, February 27, 2012 at 5:00 p.m. (ET) to discuss its fourth quarter and year-end fiscal 2011 results. A live webcast of this call will be available on the investor relations portion of URS' website at http://investors.urs.com.

URS Corporation (NYSE: URS) is a leading provider of engineering, construction and technical services for public agencies and private sector companies around the world. The Company offers a full range of program management; planning, design and engineering; systems engineering and technical assistance; construction and construction management; operations and maintenance; information technology; and decommissioning and closure services. URS provides services for power, infrastructure, industrial and commercial, and federal projects and programs. Headquartered in San Francisco, URS Corporation has more than 46,000 employees in a network of offices in more than 40 countries (www.urs.com).

TABLES TO FOLLOW

Statements contained in this earnings release that are not historical facts may constitute forward-looking statements, including statements relating to future revenues, net income and earnings per share, future outstanding shares, future backlog and book of business, the expected acquisition of Flint Energy Services Ltd., future dividend payments and other future business, economic and industry trends and conditions.We believe that our expectations are reasonable and are based on reasonable assumptions; however, we caution against relying on any of our forward-looking statements as such forward-looking statements by their nature involve risks and uncertainties.A variety of factors, including but not limited to the following, could cause our business and financial results, as well as the timing of events, to differ materially from those expressed or implied in our forward-looking statements:declines in the economy or client spending; changes in our book of business; our compliance with government contract procurement regulations; impairment of our goodwill; integration of acquisitions; employee, agent or partner misconduct; our ability to procure government contracts; liabilities for pending and future litigation; environmental liabilities; availability of bonding and insurance; our reliance on government appropriations; unilateral termination provisions in government contracts; our ability to make accurate estimates and assumptions; our accounting policies; workforce utilization; our and our partners' ability to bid on, win, perform and renew contracts and projects; liquidated damages; our dependence on partners, subcontractors and suppliers; customer payment defaults; our ability to recover on claims; impact of target and fixed-priced contracts on earnings; the inherent dangers at our project sites; the impact of changes in laws and regulations; nuclear indemnifications and insurance; misstatements in expert reports; a decline in defense spending; industry competition; our ability to attract and retain key individuals; retirement plan obligations; our leveraged position and the ability to service our debt; restrictive covenants in our credit agreement; risks associated with international operations; business activities in high security risk countries; information technology risks; natural and man-made disaster risks; our relationships with labor unions; our ability to protect our intellectual property rights; anti-takeover risks and other factors discussed more fully in our Form 10-K for the period ended December 30, 2011, as well as in other reports subsequently filed from time to time with the United States Securities and Exchange Commission.The forward-looking statements represent our current intentions as of the date on which they were made and we assume no obligation to revise or update any forward-looking statements.

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)

                     
December 30, 2011December 31, 2010
ASSETS
Current assets:
Cash and cash equivalents $ 436.0 $ 573.8
Accounts receivable, including retentions of $67.5 and $69.1,

respectively

1,114.7 1,102.8
Costs and accrued earnings in excess of billings on contracts 1,317.1 1,157.1
Less receivable allowances   (43.1 )   (42.8 )
Net accounts receivable 2,388.7 2,217.1
Deferred tax assets 63.0 83.3
Other current assets   201.2     134.8  
Total current assets 3,088.9 3,009.0
Investments in and advances to unconsolidated joint ventures 107.7 65.5
Property and equipment at cost, net 269.4 266.1
Intangible assets, net 522.0 514.1
Goodwill 2,773.0 3,393.2
Other assets   101.6     103.5  
Total assets $ 6,862.6   $ 7,351.4  
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $ 61.5 $ 60.5
Accounts payable and subcontractors payable, including retentions

of $39.6 and $46.5, respectively

659.1 673.9
Accrued salaries and employee benefits 527.0 441.6
Billings in excess of costs and accrued earnings on contracts 310.8 275.8
Other current liabilities   176.5     191.4  
Total current liabilities 1,734.9 1,643.2
Long-term debt 737.0 641.3
Deferred tax liabilities 276.5 326.9
Self-insurance reserves 132.7 127.9
Pension and post-retirement benefit obligations 276.0 230.8
Other long-term liabilities   221.1     180.3  
Total liabilities   3,378.2     3,150.4  
Commitments and contingencies
URS stockholders' equity:
Preferred stock, authorized 3.0 shares; no shares outstanding

Common stock, par value $.01; authorized 200.0 shares; 87.8 and

86.9 shares issued, respectively; and 76.7 and 81.9 shares

outstanding, respectively

0.9 0.9
Treasury stock, 11.1 and 5.0 shares at cost, respectively (454.9 ) (212.1 )
Additional paid-in capital 2,966.8 2,924.3
Accumulated other comprehensive loss (110.8 ) (36.9 )
Retained earnings   975.2     1,441.0  
Total URS stockholders' equity 3,377.2 4,117.2
Noncontrolling interests   107.2     83.8  
Total stockholders' equity   3,484.4     4,201.0  
Total liabilities and stockholders' equity $ 6,862.6   $ 7,351.4  

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

               

 

Three Months Ended

Year Ended
December 30,   December 31,December 30,   December 31,
2011   2010   2011   2010  
 
Revenues $ 2,393.2 $ 2,380.1 $ 9,545.0 $ 9,177.1
Cost of revenues (2,257.7 ) (2,264.6 ) (8,988.8 ) (8,609.5 )
General and administrative expenses (19.6 ) (15.9 ) (79.5 ) (71.0 )
Acquisition-related expenses (0.3 ) (1.0 ) (11.9 )
Restructuring costs (5.5 ) (10.6 ) (5.5 ) (10.6 )
Goodwill impairment (27.7 ) (825.8 )
Equity in income of unconsolidated joint ventures   31.4     33.7     132.2     70.3  
Operating income (loss) 114.1 122.4 (223.4 ) 544.4
Interest expense   (6.7 )   (6.7 )   (22.1 )   (30.6 )
Income (loss) before income taxes 107.4 115.7 (245.5 ) 513.8
Income tax expense (as revised) (1)   (46.8 )   (33.6 )   (91.8 )   (127.6 )
Net income (loss) including noncontrolling interests (as revised) (1) 60.6 82.1 (337.3 ) 386.2
Noncontrolling interests in income of consolidated

subsidiaries (as revised) (1)

  (32.2 )   (22.1 )   (128.5 )   (98.3 )
Net income (loss) attributable to URS $ 28.4   $ 60.0   $ (465.8 ) $ 287.9  
 
 
Earnings (loss) per share:
Basic $ 0.37   $ 0.75   $ (6.03 ) $ 3.56  
Diluted $ 0.37   $ 0.75   $ (6.03 ) $ 3.54  
Weighted-average shares outstanding:
Basic   76.3     80.2     77.3     81.0  
Diluted   76.4     80.4     77.3     81.3  

(1) We have corrected the calculation and previously reported presentation of income tax expense, net income include noncontrolling interests and noncontrolling interests in income of consolidated subsidiaries by revising prior year amounts, as discussed on page 13 of this press release.

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

                 
Three Months Ended   Year Ended
December 30,   December 31,December 30,   December 31,
2011   2010     2011   2010  
Cash flows from operating activities:
Net income (loss) including noncontrolling interests (as revised) (1) $ 60.6   $ 82.1   $ (337.3 ) $ 386.2  
Adjustments to reconcile net income (loss) to net

cash from operating activities:

Depreciation and amortization 20.8 25.2 82.1 84.3
Amortization of intangible assets 16.2 15.2 60.6 49.2
Amortization of debt issuance costs 1.1 2.2 5.8 9.2
Restructuring costs 3.3 10.6 3.3 10.6
Normal profit (0.8 ) 1.4 (2.7 ) 1.2
Goodwill impairment 27.7 825.8
Loss on extinguishment of debt 2.9 2.9
Provision for doubtful accounts (3.9 ) 4.8 2.8 6.7
Gain on disposal of property and equipment (8.5 ) (8.9 )
Deferred income taxes 41.2 (15.1 ) (23.3 ) 10.9
Stock-based compensation 11.3 11.7 45.3 44.0
Excess tax benefits from stock-based compensation 2.1 (0.8 ) (1.2 )
Equity in income of unconsolidated joint ventures (31.4 ) (33.7 ) (132.2 ) (70.3 )
Dividends received from unconsolidated joint

ventures

18.9 22.0 107.3 92.5
Changes in operating assets, liabilities and other, net

of effects of consolidation and/or deconsolidation

of joint ventures and business acquisitions:

Accounts receivable and costs and accrued

earnings in excess of billings on contracts

80.5 45.4 (106.8 ) (46.4 )
Other current assets (2.7 ) 24.8 (19.0 ) 29.8
Advances to unconsolidated joint ventures 5.0 0.1 (0.2 ) (1.7 )
Accounts payable, accrued salaries and employee

benefits, and other current liabilities (as revised) (1)

(92.1 ) (48.6 ) (43.0 ) (67.6 )
Billings in excess of costs and accrued earnings on

contracts

(24.0 ) 12.0 19.2 (30.2 )
Other long-term liabilities 5.5 8.3 13.0 22.5
Other assets   10.5     3.5     10.7     (2.1 )
Total adjustments and changes   81.5     91.9     841.9     141.4  
Net cash from operating activities   142.1     174.0     504.6     527.6  

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(In millions)

                 
Three Months EndedYear Ended
December 30,   December 31,December 30,   December 31,
2011   2010   2011   2010  
Cash flows from investing activities:
Payments for business acquisitions, net of cash

acquired, and for exercised shares in connection

with a business acquisition

(3.3 ) (3.7 ) (282.1 ) (291.7 )
Changes in cash related to consolidation and/or

deconsolidation of joint ventures

20.7
Proceeds from disposal of property and equipment 7.6 4.1 14.1 8.3
Investments in unconsolidated joint

ventures

(7.0 ) (19.6 ) (6.0 )
Changes in restricted cash 0.3 0.4 7.0 (16.1 )
Capital expenditures, less equipment purchased

through capital leases and equipment notes

(5.8 ) (11.1 ) (67.5 ) (45.2 )
Maturity of short-term investment               30.2  
Net cash from investing activities   (8.2 )   (10.3 )   (348.1 )   (299.8 )
Cash flows from financing activities:
Borrowing from long-term debt and revolving line

of credit

738.6 838.6
Payments on long-term debt and revolving

line of credit

(692.2 ) (77.2 ) (748.3 ) (159.6 )
Net payments under lines of credit and

short-term notes

(27.7 ) (11.6 ) (16.4 ) (7.6 )
Net change in overdrafts 0.2 18.9 (18.0 ) 14.4
Payments on capital lease obligations (5.1 ) (2.4 ) (10.9 ) (7.5 )
Payments of debt issuance costs (3.9 ) (3.9 )
Excess tax benefits from stock-based compensation (2.1 ) 0.8 1.2
Proceeds from employee stock purchases and

exercises of stock options

5.1 4.8 11.7 11.3
Distributions to noncontrolling interests (34.2 ) (35.5 ) (111.7 ) (107.2 )
Contributions and advances from noncontrolling

interests

0.3 1.0 6.6 8.2
Repurchases of common stock   (106.1 )   (42.8 )   (242.8 )   (128.3 )
Net cash from financing activities   (125.0 )   (146.9 )   (294.3 )   (375.1 )
Net change in cash and cash equivalents 8.9 16.8 (137.8 ) (147.3 )
Cash and cash equivalents at beginning of

period

  427.1     557.0     573.8     721.1  
Cash and cash equivalents at end of period $ 436.0   $ 573.8   $ 436.0   $ 573.8  
 
Supplemental information:
Interest paid $ 4.8   $ 5.8   $ 15.2   $ 24.0  
Taxes paid $ 40.3   $ 53.9   $ 177.3   $ 79.3  

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(In millions)

                 
Three Months EndedYear Ended
December 30,   December 31,December 30,   December 31,
2011201020112010
Supplemental schedule of non-cash investing and financing activities:
Loan Notes issued and estimated consideration for vested shares exercisable in connection with an acquisition
$ $ $ $ 30.9
Equipment acquired with capital lease obligations

and equipment note obligations

$ 6.1 $ 2.9 $ 14.2 $ 12.9
Purchase price adjustment and contingent

consideration payable under acquisitions

$ 7.9 $ $ 7.9 $

(1) We have corrected the previously reported presentation of net income including noncontrolling interests, and accounts payable, accrued salaries and employee benefits, and other current liabilities discussed on page 13 of this press release.

URS CORPORATION AND SUBSIDIARIES
RECONCILIATION SCHEDULE OF GAAP TO NON-GAAP MEASURES

Net income (loss), diluted EPS and segment operating income, excluding the impact of various items listed in the tables below are not computed in accordance with generally accepted accounting principles ("GAAP"). We present these amounts to demonstrate the impact of the amounts. These non-GAAP measures may be useful to investors seeking to compare the actual or expected performance of our ongoing business with the actual performance of our business in prior periods. Net income, diluted EPS and segment operating income excluding the impact of these items should not be used as a substitute for net income (loss), diluted EPS and operating income (loss), prepared in conformity with GAAP, or as a GAAP measure of profitability or cash flows.

Below are the reconciliations of net income and diluted EPS computed by excluding the non-GAAP items, listed in the tables, below to GAAP net income (loss) and diluted EPS for the three months and the year ended December 30, 2011, compared to the three months and the year ended December 31, 2010.

      Three Months Ended
December 30, 2011   December 31, 2010
(In millions, except per share data)Amount   Diluted EPSAmount   Diluted EPS
 
Net income and diluted EPS
Net income and diluted EPS before the impact of the

following items:

$ 68.5 $ 0.89 $ 69.3 $ 0.87
Goodwill impairment charge, net of tax (32.9 ) (0.43 )
Restructuring charges, net of tax (5.5 ) (0.07 ) (9.3 ) (0.12 )
Loss on extinguishment of debt, net of tax   (1.7 )   (0.02 )        
GAAP Net income and diluted EPS $ 28.4   $ 0.37   $ 60.0   $ 0.75  
 
Year Ended
December 30, 2011December 31, 2010
(In millions, except per share data)AmountDiluted EPSAmountDiluted EPS
 
Net income (loss) and diluted EPS

Net income and diluted EPS before the impact of the

following item:

$ 274.2 $ 3.53 $ 267.0 $ 3.28
Reduction in income tax expense           42.1     0.52  
Net income and diluted EPS before the impact of the

following items:

274.2 3.53 309.1 3.80
Goodwill impairment charge, net of tax (732.2 ) (9.46 )
Restructuring charges, net of tax (5.5 ) (0.07 ) (9.3 ) (0.11 )
Loss on extinguishment of debt, net of tax (1.7 ) (0.02 )
Acquisition-related expenses, net of tax   (0.6 )   (0.01 )   (11.9 )   (0.15 )
GAAP Net income (loss) and diluted EPS $ (465.8 ) $ (6.03 ) $ 287.9   $ 3.54  

URS CORPORATION AND SUBSIDIARIES

RECONCILIATION SCHEDULE OF GAAP TO NON-GAAP MEASURES (Continued)

Below is the reconciliation of segment operating income (loss), before the impact of items listed in the table below, to GAAP segment operating income (loss) for the three months and year ended December 30, 2011 and December 31, 2010.

      Three Months Ended December 30, 2011
(In millions)Infrastructure & Environment   Federal Services   Energy & Construction   Corporate   Consolidated
 
Operating income (loss) before the

impact of the following items:

$ 56.9 $ 54.8 $ 55.2 $ (19.6 ) $ 147.3
Goodwill impairment adjustment 19.1 (46.8 ) (27.7 )
Restructuring charges   (5.5 )               (5.5 )
GAAP Operating income (loss) $ 51.4   $ 73.9   $ 8.4   $ (19.6 ) $ 114.1  
 
Year Ended December 30, 2011
(In millions)Infrastructure & EnvironmentFederal ServicesEnergy & ConstructionCorporateConsolidated
 
Operating income (loss) before the

impact of the following items:

$ 227.6 $ 197.7 $ 263.1 $ (79.5 ) $ 608.9
Goodwill impairment adjustment (348.3 ) (477.5 ) (825.8 )
Restructuring charges (5.5 ) (5.5 )
Acquisition-related expenses   (0.1 )   (0.9 )           (1.0 )
GAAP Operating income (loss) $ 222.0   $ (151.5 ) $ (214.4 ) $ (79.5 ) $ (223.4 )
 
Three Months Ended December 31, 2010
(In millions)Infrastructure & EnvironmentFederal ServicesEnergy & ConstructionCorporateConsolidated
 
Operating income (loss) before the

impact of the following items:

$ 61.4 $ 41.7 $ 46.3 $ (16.1 ) $ 133.3
Restructuring charges (10.6 ) (10.6 )
Acquisition-related expenses   (0.3 )               (0.3 )
GAAP Operating income (loss) $ 50.5   $ 41.7   $ 46.3   $ (16.1 ) $ 122.4  
 
Year Ended December 31, 2010
(In millions)Infrastructure & EnvironmentFederal ServicesEnergy & ConstructionCorporateConsolidated
 
Operating income (loss) before the

impact of the following items:

$ 245.4 $ 165.6 $ 226.9 $ (71.0 ) $ 566.9
Restructuring charges (10.6 ) (10.6 )
Acquisition-related expenses   (11.9 )               (11.9 )
GAAP Operating income (loss) $ 222.9   $ 165.6   $ 226.9   $ (71.0 ) $ 544.4  

URS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION REGARDING REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

Revision of Previously Issued Financial Statements

During fiscal year 2011, we identified an error and revised our calculation and presentation of income tax expense related to noncontrolling interests in consolidated joint ventures that pass-taxable income through to their partners. This revision did not cause a change in either our net income or EPS. We revised the amounts for the three months and year ended December 31, 2010.

The effect of these revisions on our consolidated statements of operations and consolidated statements of cash flows for the three months and year ended December 31, 2010 is as follows:

              Three Months Ended   Year Ended
December 31, 2010December 31, 2010
As Reported   Adjustment   As RevisedAs Reported   Adjustment   As Revised
(In millions)
Consolidated Statements of

Operations Data:

Income before income taxes $ 115.7 $ $ 115.7 $ 513.8 $ $ 513.8
Income tax expense   (37.5)   3.9   (33.6)   (154.9)   27.3   (127.6)
Net income including noncontrolling

interests

78.2 3.9 82.1 358.9 27.3 386.2
Noncontrolling interests in income of

consolidated subsidiaries

  (18.2)   (3.9)   (22.1)   (71.0)   (27.3)   (98.3)
Net income attributable to URS $ 60.0 $ $ 60.0 $ 287.9 $ $ 287.9
              Three Months Ended   Year Ended
December 31, 2010December 31, 2010
As Reported   Adjustment   As RevisedAs Reported   Adjustment   As Revised
(In millions)
Consolidated Statements of Cash Flows

Data:

Cash flows from operating activities:
Net income including noncontrolling

interests

$ 78.2 $ 3.9 $ 82.1 $ 358.9 $ 27.3 $ 386.2
Accounts payable, accrued salaries and

employee benefits, and other current

liabilities

$ (44.7 ) $ (3.9 ) $ (48.6 ) $ (40.3 ) $ (27.3 ) $ (67.6 )

URS CORPORATION AND SUBSIDIARIES

BOOK OF BUSINESS

           
InfrastructureEnergy
&Federal&
(In millions)EnvironmentServicesConstructionTotal
As of December 30, 2011
Backlog $ 2,993.1 $ 4,141.8 $ 7,124.7 $ 14,259.6
Option years 316.6 2,370.1 2,026.2 4,712.9
Indefinite delivery contracts   2,806.5   3,304.0   1,948.0   8,058.5
Total book of business $ 6,116.2 $ 9,815.9 $ 11,098.9 $ 27,031.0
 
As of December 31, 2010
Backlog $ 3,259.1 $ 6,002.2 $ 7,346.4 $ 16,607.7
Option years 342.6 2,288.1 2,117.7 4,748.4
Indefinite delivery contracts   3,436.3   3,208.9   1,071.2   7,716.4
Total book of business $ 7,038.0 $ 11,499.2 $ 10,535.3 $ 29,072.5
                  December 30,   December 31,
(In millions)20112010
Backlog by market sector:
Power $ 1,623.8 $ 1,407.7
Infrastructure 3,011.0 2,564.5
Industrial and commercial 1,082.4 1,347.3
Federal   8,542.4   11,288.2
Total backlog $ 14,259.6 $ 16,607.7

URS CORPORATION AND SUBSIDIARIES

REVENUES AND OPERATING INCOME (LOSS) BY SEGMENT

         
Three Months EndedYear Ended
(In millions)December 30,   December 31,December 30,   December 31,
2011   2010   2011   2010  
Revenues
Infrastructure & Environment (1) $ 970.8 $ 904.1 $ 3,760.9 $ 3,248.5
Federal Services (2) 726.8 648.0 2,695.4 2,582.8
Energy & Construction 729.7 854.4 3,251.1 3,420.6
Inter-segment, eliminations and other   (34.1 )   (26.4 )   (162.4 )   (74.8 )
Total revenues $ 2,393.2   $ 2,380.1   $ 9,545.0   $ 9,177.1  
Operating income (loss)
Infrastructure & Environment (1) $ 51.4 $ 50.5 $ 222.0 $ 222.9
Federal Services (2) 73.9 41.7 (151.5 ) 165.6
Energy & Construction (3) 8.4 46.3 (214.4 ) 226.9
General and administrative expenses   (19.6 )   (16.1 )   (79.5 )   (71.0 )
Total operating income (loss) $ 114.1   $ 122.4   $ (223.4 ) $ 544.4  

(1) The operating results of Scott Wilson were included in the three months and year ended December 30, 2011, and in the three months ended December 31, 2010, but only partially included in the year ended December 31, 2010, as we completed the acquisition in September 2010.

(2) The operating results of Apptis were included in the three months and partially included in the year ended December 30, 2011, but not in the corresponding periods ended December 31, 2010, as we completed the acquisition in June 2011. For the three months and year ended December 30, 2011, the Federal Services Division recorded a goodwill impairment adjustment of $(19.1) million and a goodwill impairment charge of $348.3 million, respectively.

(3) For the three months and year ended December 30, 2011, the Energy & Construction business recorded a goodwill impairment charge of $46.8 million and $477.5 million, respectively.

URS CORPORATION AND SUBSIDIARIES

REVENUE BREAKDOWN BY SEGMENT AND MARKET SECTOR

         
Three months ended December 30, 2011 (In millions)PowerInfrastructureFederalIndustrial and CommercialTotal
  Infrastructure & Environment (1) $ 59.8 $ 377.7 $ 161.4 $ 344.9 $ 943.8
Federal Services (2) 726.5 726.5
Energy & Construction   235.3   61.8   265.7   160.1   722.9
  Total $ 295.1 $ 439.5 $ 1,153.6 $ 505.0 $ 2,393.2
 
Year ended December 30, 2011 (In millions)PowerInfrastructureFederalIndustrial and CommercialTotal
Infrastructure & Environment (1) $ 201.1 $ 1,544.0 $ 636.5 $ 1,293.5 $ 3,675.1
Federal Services (2) 2,694.3 2,694.3
Energy & Construction   925.5   317.3   1,308.9   623.9   3,175.6
Total $ 1,126.6 $ 1,861.3 $ 4,639.7 $ 1,917.4 $ 9,545.0
 
Three months ended December 31, 2010 (In millions)PowerInfrastructureFederalIndustrial and CommercialTotal
Infrastructure & Environment (1) $ 48.2 $ 368.9 $ 170.4 $ 307.6 $ 895.1
Federal Services (2) 647.8 647.8
Energy & Construction   217.7   105.0   346.0   168.5   837.2
Total $ 265.9 $ 473.9 $ 1,164.2 $ 476.1 $ 2,380.1
 
Year ended December 31, 2010 (In millions)PowerInfrastructureFederalIndustrial and CommercialTotal
Infrastructure & Environment (1) $ 156.5 $ 1,402.8 $ 682.7 $ 972.2 $ 3,214.2
Federal Services (2) 2,581.2 2,581.2
Energy & Construction   952.7   499.6   1,259.5   669.9   3,381.7
Total $ 1,109.2 $ 1,902.4 $ 4,523.4 $ 1,642.1 $ 9,177.1

(1) The operating results of Scott Wilson were included in the three months and year ended December 30, 2011, and in the three months ended December 31, 2010, but only partially included in the year ended December 31, 2010 as we completed the acquisition in September 2010.

(2) The operating results of Apptis were included in the three months and partially included in the year ended December 30, 2011, but not in the corresponding periods ended December 31, 2010 as we completed the acquisition in June 2011.

(Source: Business Wire )
(Source: Quotemedia)

Advertisement
Advertisement



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.