1-7567
|
94-1381538
|
|
(Commission File No.)
|
(IRS Employer Identification No.)
|
□
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
□
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
□
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
□
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Press Release, dated May 8, 2012, entitled “URS Corporation Reports First Quarter 2012 Results.”
|
URS CORPORATION | |||
Dated: May 8, 2012
|
By:
|
/s/ Reed N. Brimhall | |
Reed N. Brimhall | |||
Vice President and Chief Accounting Officer | |||
Exhibit No.
|
Description
|
Press Release, dated May 8, 2012, entitled “URS Corporation Reports First Quarter 2012 Results.”
|
Contacts:
URS Corporation
Sam Ramraj
Vice President,
Investor Relations
(415) 774-2700
|
Sard Verbinnen & Co
Hugh Burns/Jamie Tully/Briana Kelly
(212) 687-8080
|
March 30, 2012
|
December 30, 2011
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 1,309.5 | $ | 436.0 | ||||
Accounts receivable, including retentions of $66.1 and $67.5, respectively
|
1,091.2 | 1,114.7 | ||||||
Costs and accrued earnings in excess of billings on contracts
|
1,415.6 | 1,317.1 | ||||||
Less receivable allowances
|
(38.7 | ) | (43.1 | ) | ||||
Net accounts receivable
|
2,468.1 | 2,388.7 | ||||||
Deferred tax assets
|
65.5 | 63.0 | ||||||
Other current assets
|
166.8 | 201.2 | ||||||
Total current assets
|
4,009.9 | 3,088.9 | ||||||
Investments in and advances to unconsolidated joint ventures
|
129.1 | 107.7 | ||||||
Property and equipment at cost, net
|
270.9 | 269.4 | ||||||
Intangible assets, net
|
508.9 | 522.0 | ||||||
Goodwill
|
2,784.2 | 2,773.0 | ||||||
Other assets
|
104.4 | 101.6 | ||||||
Total assets
|
$ | 7,807.4 | $ | 6,862.6 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$ | 62.4 | $ | 61.5 | ||||
Accounts payable and subcontractors payable, including retentions of $39.0 and $39.6, respectively
|
641.1 | 659.1 | ||||||
Accrued salaries and employee benefits
|
542.9 | 527.0 | ||||||
Billings in excess of costs and accrued earnings on contracts
|
250.6 | 310.8 | ||||||
Other current liabilities
|
158.3 | 176.5 | ||||||
Total current liabilities
|
1,655.3 | 1,734.9 | ||||||
Long-term debt
|
1,703.2 | 737.0 | ||||||
Deferred tax liabilities
|
281.8 | 276.5 | ||||||
Self-insurance reserves
|
135.6 | 132.7 | ||||||
Pension and post-retirement benefit obligations
|
274.5 | 276.0 | ||||||
Other long-term liabilities
|
202.5 | 221.1 | ||||||
Total liabilities
|
4,252.9 | 3,378.2 | ||||||
Commitments and contingencies
|
||||||||
URS stockholders’ equity:
|
||||||||
Preferred stock, authorized 3.0 shares; no shares outstanding
|
— | — | ||||||
Common stock, par value $.01; authorized 200.0 shares; 88.0 and
87.8 shares issued, respectively; and 75.9 and 76.7 shares
outstanding, respectively
|
0.9 | 0.9 | ||||||
Treasury stock, 12.1 and 11.1 shares at cost, respectively
|
(494.9 | ) | (454.9 | ) | ||||
Additional paid-in capital
|
2,979.4 | 2,966.8 | ||||||
Accumulated other comprehensive loss
|
(89.3 | ) | (110.8 | ) | ||||
Retained earnings
|
1,039.7 | 975.2 | ||||||
Total URS stockholders’ equity
|
3,435.8 | 3,377.2 | ||||||
Noncontrolling interests
|
118.7 | 107.2 | ||||||
Total stockholders’ equity
|
3,554.5 | 3,484.4 | ||||||
Total liabilities and stockholders’ equity
|
$ | 7,807.4 | $ | 6,862.6 |
|
Three Months Ended
|
|||||||
|
March 30,
|
April 1,
|
||||||
|
2012
|
2011
|
||||||
|
||||||||
Revenues
|
$ | 2,361.5 | $ | 2,319.8 | ||||
Cost of revenues
|
(2,203.2 | ) | (2,202.7 | ) | ||||
General and administrative expenses
|
(17.5 | ) | (22.4 | ) | ||||
Acquisition-related expenses
|
(5.6 | ) | — | |||||
Equity in income of unconsolidated joint ventures
|
28.7 | 37.4 | ||||||
Operating income
|
163.9 | 132.1 | ||||||
Interest expense
|
(9.8 | ) | (5.2 | ) | ||||
Income before income taxes
|
154.1 | 126.9 | ||||||
Income tax expense (as revised) (1)
|
(48.6 | ) | (39.0 | ) | ||||
Net income including noncontrolling interests (as revised) (1)
|
105.5 | 87.9 | ||||||
Noncontrolling interests in income of consolidated subsidiaries (as revised) (1)
|
(25.8 | ) | (25.8 | ) | ||||
Net income attributable to URS
|
$ | 79.7 | $ | 62.1 | ||||
|
||||||||
|
||||||||
Earnings per share:
|
||||||||
Basic
|
$ | 1.08 | $ | 0.79 | ||||
Diluted
|
$ | 1.07 | $ | 0.79 | ||||
Weighted-average shares outstanding:
|
||||||||
Basic
|
74.0 | 78.4 | ||||||
Diluted
|
74.3 | 78.8 | ||||||
|
||||||||
Cash dividends declared per share
|
$ | 0.20 | $ | — |
(1)
|
We have corrected the calculation and previously reported presentation of income tax expense, net income including noncontrolling interests and noncontrolling interests in income of consolidated subsidiaries by revising prior year amounts, as discussed on page 11 of this press release.
|
|
Three Months Ended
|
|||||||
|
March 30,
|
April 1,
|
||||||
|
2012
|
2011
|
||||||
Cash flows from operating activities:
|
||||||||
Net income including noncontrolling interests (as revised) (1)
|
$ | 105.5 | $ | 87.9 | ||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||
Depreciation and amortization
|
20.0 | 20.2 | ||||||
Amortization of intangible assets
|
17.2 | 13.0 | ||||||
Amortization of debt issuance costs and discount
|
0.8 | 1.6 | ||||||
Normal profit
|
1.4 | 1.0 | ||||||
Provision for doubtful accounts
|
1.4 | 1.3 | ||||||
Deferred income taxes
|
2.1 | 25.6 | ||||||
Stock-based compensation
|
11.3 | 12.0 | ||||||
Excess tax benefits from stock-based compensation
|
(0.4 | ) | (0.7 | ) | ||||
Equity in income of unconsolidated joint ventures
|
(28.7 | ) | (37.4 | ) | ||||
Dividends received from unconsolidated joint ventures
|
18.6 | 11.9 | ||||||
Changes in operating assets, liabilities and other:
|
||||||||
Accounts receivable and costs and accrued earnings in excess of billings on contracts
|
(78.5 | ) | (1.1 | ) | ||||
Other current assets
|
(5.9 | ) | (4.0 | ) | ||||
Advances to unconsolidated joint ventures
|
(5.7 | ) | (9.3 | ) | ||||
Accounts payable, accrued salaries and employee benefits, and other current liabilities (as revised) (1)
|
(20.1 | ) | (3.3 | ) | ||||
Billings in excess of costs and accrued earnings on contracts
|
(65.5 | ) | 3.3 | |||||
Other long-term liabilities
|
(4.1 | ) | (12.3 | ) | ||||
Other assets
|
14.2 | 1.2 | ||||||
Total adjustments and changes
|
(121.9 | ) | 23.0 | |||||
Net cash from operating activities
|
(16.4 | ) | 110.9 | |||||
Cash flows from investing activities:
|
||||||||
Payments for exercised shares in connection with a business acquisition
|
— | (2.9 | ) | |||||
Proceeds from disposal of property and equipment
|
9.5 | 1.5 | ||||||
Investments in unconsolidated joint ventures
|
(4.0 | ) | (7.2 | ) | ||||
Changes in restricted cash
|
1.7 | (0.3 | ) | |||||
Capital expenditures, less equipment purchased through capital leases and equipment notes
|
(17.8 | ) | (11.0 | ) | ||||
Net cash from investing activities
|
(10.6 | ) | (19.9 | ) |
Three Months Ended
|
||||||||
March 30,
|
April 1,
|
|||||||
2012
|
2011
|
|||||||
Cash flows from financing activities:
|
||||||||
Borrowings from long-term debt
|
998.9 | — | ||||||
Payments on long-term debt
|
(1.6 | ) | — | |||||
Borrowings from revolving line of credit
|
50.0 | — | ||||||
Payments on revolving line of credit
|
(73.6 | ) | (2.1 | ) | ||||
Net payments under foreign lines of credit and short-term notes
|
(8.9 | ) | (7.5 | ) | ||||
Net change in overdrafts
|
0.6 | (18.6 | ) | |||||
Payments on capital lease obligations
|
(2.6 | ) | (2.1 | ) | ||||
Payments of debt issuance costs
|
(8.7 | ) | — | |||||
Excess tax benefits from stock-based compensation
|
0.4 | 0.7 | ||||||
Proceeds from employee stock purchases and exercises of stock options
|
1.0 | 1.5 | ||||||
Distributions to noncontrolling interests
|
(15.5 | ) | (15.6 | ) | ||||
Contributions and advances from noncontrolling interests
|
0.5 | 3.2 | ||||||
Repurchases of common stock
|
(40.0 | ) | (136.7 | ) | ||||
Net cash from financing activities
|
900.5 | (177.2 | ) | |||||
Net change in cash and cash equivalents
|
873.5 | (86.2 | ) | |||||
Cash and cash equivalents at beginning of period
|
436.0 | 573.8 | ||||||
Cash and cash equivalents at end of period
|
$ | 1,309.5 | $ | 487.6 | ||||
Supplemental information:
|
||||||||
Interest paid
|
$ | 7.3 | $ | 4.1 | ||||
Taxes paid
|
$ | 8.8 | $ | 57.2 | ||||
Supplemental schedule of non-cash investing and financing activities:
|
||||||||
Equipment acquired with capital lease obligations and equipment note obligations
|
$ | 3.9 | $ | 2.4 | ||||
Dividends declared but not paid
|
$ | 15.2 | $ | — |
(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 11 of this press release.
|
Three Months Ended March 30, 2012
|
||||||||
(In millions, except per share data)
|
Net Income
|
Diluted EPS
|
||||||
Before the impact of acquisition-related expenses
|
$ | 83.1 | $ | 1.12 | ||||
Acquisition-related expenses, net of tax
|
(3.4 | ) | (.05 | ) | ||||
Net income and diluted EPS
|
$ | 79.7 | $ | 1.07 |
Three Months Ended
|
||||||||||||
April 1, 2011
|
||||||||||||
As Reported
|
Adjustment
|
As Revised
|
||||||||||
(In millions)
|
||||||||||||
Condensed Consolidated Statement of Operations Data:
|
||||||||||||
Income before income taxes
|
$ | 126.9 | $ | — | $ | 126.9 | ||||||
Income tax expense
|
(44.0 | ) | 5.0 | (39.0 | ) | |||||||
Net income including noncontrolling interests
|
82.9 | 5.0 | 87.9 | |||||||||
Noncontrolling interests in income of consolidated subsidiaries
|
(20.8 | ) | (5.0 | ) | (25.8 | ) | ||||||
Net income attributable to URS
|
$ | 62.1 | $ | — | $ | 62.1 |
Three Months Ended
|
||||||||||||
April 1, 2011
|
||||||||||||
As Reported
|
Adjustment
|
As Revised
|
||||||||||
(In millions)
|
||||||||||||
Condensed Consolidated Statement of Cash Flows Data:
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income including noncontrolling interests
|
$ | 82.9 | $ | 5.0 | $ | 87.9 | ||||||
Accounts payable, accrued salaries and employee benefits, and other current liabilities
|
$ | 1.2 | $ | (4.5 | ) | $ | (3.3 | ) | ||||
Other long-term liabilities
|
$ | (11.8 | ) | $ | (0.5 | ) | $ | (12.3 | ) |
Infrastructure
|
Energy
|
|||||||||||||||
&
|
Federal
|
&
|
||||||||||||||
(In millions)
|
Environment
|
Services
|
Construction
|
Total
|
||||||||||||
As of March 30, 2012
|
||||||||||||||||
Backlog
|
$ | 3,189.1 | $ | 3,814.6 | $ | 7,126.6 | $ | 14,130.3 | ||||||||
Option years
|
298.8 | 2,248.9 | 2,042.5 | 4,590.2 | ||||||||||||
Indefinite delivery contracts
|
3,156.9 | 3,164.3 | 1,968.0 | 8,289.2 | ||||||||||||
Total book of business
|
$ | 6,644.8 | $ | 9,227.8 | $ | 11,137.1 | $ | 27,009.7 | ||||||||
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 | ||||||||
March 30,
|
December 30,
|
|||||||
(In millions)
|
2012
|
2011
|
||||||
Backlog by market sector:
|
||||||||
Federal
|
$ | 7,896.0 | $ | 8,542.4 | ||||
Infrastructure
|
3,169.8 | 3,011.0 | ||||||
Oil & Gas (1)
|
452.0 | 383.4 | ||||||
Power
|
1,622.3 | 1,623.8 | ||||||
Industrial (1)
|
990.2 | 699.0 | ||||||
Total backlog
|
$ | 14,130.3 | $ | 14,259.6 |
(1)
|
Effective at the beginning of our 2012 fiscal year, we revised our presentation to show our revenues from the oil & gas market sector separately. In addition, we have changed the name of our “industrial and commercial” market sector to “industrial” market sector. This new presentation has been implemented in anticipation of the inclusion of a new business from the pending Flint acquisition, which we expect to close in the second quarter of 2012, assuming receipt of final regulatory approvals and satisfaction or waiver of all conditions to closing. For comparative purposes, we reclassified the prior period’s data to conform them to the current period’s presentation.
|
|
Three Months Ended
|
|||||||
(In millions)
|
March 30,
|
April 1,
|
||||||
2012
|
2011
|
|||||||
Revenues
|
||||||||
Infrastructure & Environment
|
$ | 964.2 | $ | 909.9 | ||||
Federal Services (1)
|
717.1 | 581.1 | ||||||
Energy & Construction
|
725.7 | 866.4 | ||||||
Inter-segment eliminations
|
(45.5 | ) | (37.6 | ) | ||||
Total revenues
|
$ | 2,361.5 | $ | 2,319.8 | ||||
Operating income
|
||||||||
Infrastructure & Environment
|
$ | 45.9 | $ | 55.7 | ||||
Federal Services (1)
|
93.0 | 35.8 | ||||||
Energy & Construction
|
48.1 | 63.0 | ||||||
Corporate
|
(23.1 | ) | (22.4 | ) | ||||
Total operating income
|
$ | 163.9 | $ | 132.1 |
(1)
|
The operating results of Apptis were included in the three months ended March 30, 2012, but not in the corresponding period ended April 1, 2011, as we completed the acquisition in June 2011.
|
|
|
|||||||||||||||||||||||
(In millions)
|
Federal
|
Infrastructure
|
Oil and Gas (1)
|
Power
|
Industrial (1)
|
Total
|
||||||||||||||||||
Three months ended March 30, 2012
|
|
|
||||||||||||||||||||||
Infrastructure & Environment
|
$ | 179.3 | $ | 384.3 | $ | 124.7 | $ | 55.4 | $ | 183.5 | $ | 927.2 | ||||||||||||
Federal Services
|
717.0 | — | — | — | — | 717.0 | ||||||||||||||||||
Energy & Construction
|
277.0 | 53.7 | 38.5 | 236.6 | 111.5 | 717.3 | ||||||||||||||||||
Total
|
$ | 1,173.3 | $ | 438.0 | $ | 163.2 | $ | 292.0 | $ | 295.0 | $ | 2,361.5 | ||||||||||||
Three months ended April 1, 2011
|
||||||||||||||||||||||||
Infrastructure & Environment
|
$ | 160.1 | $ | 394.1 | $ | 102.4 | $ | 52.8 | $ | 188.2 | $ | 897.6 | ||||||||||||
Federal Services
|
580.9 | — | — | — | — | 580.9 | ||||||||||||||||||
Energy & Construction
|
323.5 | 106.0 | 61.1 | 247.5 | 103.2 | 841.3 | ||||||||||||||||||
Total
|
$ | 1,064.5 | $ | 500.1 | $ | 163.5 | $ | 300.3 | $ | 291.4 | $ | 2,319.8 |
(1)
|
Historically, we have included revenues from the oil & gas market sector as part of our presentation of revenues from the industrial & commercial market sector. Effective at the beginning of our 2012 fiscal year, we revised our presentation to show our revenues from the oil & gas market sector separately. In addition, we have changed the name of our “industrial and commercial” market sector to “industrial” market sector. For comparative purposes, we reclassified the prior period’s data to conform them to the current period’s presentation.
|