1-7567
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94-1381538
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(Commission File No.)
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(IRS Employer Identification No.)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(c)
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Exhibits
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URS CORPORATION
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Dated: August 7, 2012
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By:
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/s/ Reed N. Brimhall | |
Reed N. Brimhall
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Vice President and Chief Accounting Officer
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Exhibit No.
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Description
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Contacts:
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||
URS Corporation
Sam Ramraj
Vice President,
Investor Relations
(415) 774-2700
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Sard Verbinnen & Co
Hugh Burns/Jamie Tully/ Delia Cannan
(212) 687-8080
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·
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Second quarter revenues were $2.69 billion, a 14% increase from the second quarter of 2011.
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·
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Revenues included $277.5 million from seven weeks of operations of the former Flint Energy Services Ltd. (“Flint”), which URS acquired during the quarter. Flint revenues contributed approximately 12% in total revenue growth in the second quarter.
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·
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Second quarter 2012 GAAP net income was $53.6 million, or $0.72 per share on a diluted basis, including charges related to the Flint acquisition.
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·
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These charges included a pre-tax charge of $11.3 million (or $0.16 per share after tax) for acquisition-related expenses, and a pre-tax charge of $9.2 million (or $0.12 per share after tax) for foreign currency losses related to intercompany loans and foreign currency derivatives associated with the Flint acquisition. URS’ prior year second quarter results included $1.0 million of pre-tax acquisition-related expenses.
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·
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Excluding these charges for both periods, URS’ net income for the second quarter would have been $74.7 million, a 10% increase from the second quarter 2011, and diluted earnings per share (“EPS”) would have been $1.00, a 15% increase from 2011.
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June 29, 2012
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December 30, 2011
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|||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 287.8 | $ | 436.0 | ||||
Accounts receivable, including retentions of $91.3 and $67.5, respectively
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1,451.3 | 1,114.7 | ||||||
Costs and accrued earnings in excess of billings on contracts
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1,608.4 | 1,317.1 | ||||||
Less receivable allowances
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(38.3 | ) | (43.1 | ) | ||||
Net accounts receivable
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3,021.4 | 2,388.7 | ||||||
Deferred tax assets
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59.1 | 63.0 | ||||||
Inventory
|
79.5 | 19.5 | ||||||
Other current assets
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223.9 | 181.7 | ||||||
Total current assets
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3,671.7 | 3,088.9 | ||||||
Investments in and advances to unconsolidated joint ventures
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253.8 | 107.7 | ||||||
Property and equipment at cost, net
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679.2 | 269.4 | ||||||
Intangible assets, net
|
737.2 | 522.0 | ||||||
Goodwill
|
3,241.5 | 2,773.0 | ||||||
Other assets
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114.1 | 101.6 | ||||||
Total assets
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$ | 8,697.5 | $ | 6,862.6 | ||||
LIABILITIES AND EQUITY
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||||||||
Current liabilities:
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||||||||
Current portion of long-term debt
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$ | 86.5 | $ | 61.5 | ||||
Accounts payable and subcontractors payable, including retentions of $41.0 and $39.6, respectively
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782.3 | 659.1 | ||||||
Accrued salaries and employee benefits
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519.6 | 527.0 | ||||||
Billings in excess of costs and accrued earnings on contracts
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280.1 | 310.8 | ||||||
Other current liabilities
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200.9 | 176.5 | ||||||
Total current liabilities
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1,869.4 | 1,734.9 | ||||||
Long-term debt
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2,230.6 | 737.0 | ||||||
Deferred tax liabilities
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372.1 | 276.5 | ||||||
Self-insurance reserves
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143.0 | 132.7 | ||||||
Pension and post-retirement benefit obligations
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266.9 | 276.0 | ||||||
Other long-term liabilities
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246.0 | 221.1 | ||||||
Total liabilities
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5,128.0 | 3,378.2 | ||||||
Commitments and contingencies
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||||||||
URS stockholders’ equity:
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||||||||
Preferred stock, authorized 3.0 shares; no shares outstanding
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— | — | ||||||
Common stock, par value $.01; authorized 200.0 shares; 88.9 and 87.8 shares issued, respectively; and 76.8 and 76.7 shares outstanding, respectively
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0.9 | 0.9 | ||||||
Treasury stock, 12.1 and 11.1 shares at cost, respectively
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(494.9 | ) | (454.9 | ) | ||||
Additional paid-in capital
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2,979.8 | 2,966.8 | ||||||
Accumulated other comprehensive loss
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(122.0 | ) | (110.8 | ) | ||||
Retained earnings
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1,077.9 | 975.2 | ||||||
Total URS stockholders’ equity
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3,441.7 | 3,377.2 | ||||||
Noncontrolling interests
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127.8 | 107.2 | ||||||
Total stockholders’ equity
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3,569.5 | 3,484.4 | ||||||
Total liabilities and stockholders’ equity
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$ | 8,697.5 | $ | 6,862.6 |
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Three Months Ended
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Six Months Ended
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||||||||||||||
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June 29,
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July 1,
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June 29,
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July 1,
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||||||||||||
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2012
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2011
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2012
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2011
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||||||||||||
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||||||||||||||||
Revenues
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$ | 2,690.7 | $ | 2,360.3 | $ | 5,052.2 | $ | 4,680.1 | ||||||||
Cost of revenues
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(2,527.5 | ) | (2,228.3 | ) | (4,730.7 | ) | (4,431.1 | ) | ||||||||
General and administrative expenses
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(19.4 | ) | (19.0 | ) | (39.4 | ) | (41.4 | ) | ||||||||
Acquisition-related expenses
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(11.3 | ) | (1.0 | ) | (16.9 | ) | (1.0 | ) | ||||||||
Equity in income of unconsolidated joint ventures
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17.0 | 38.6 | 45.7 | 76.0 | ||||||||||||
Operating income
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149.5 | 150.6 | 310.9 | 282.6 | ||||||||||||
Interest expense
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(20.7 | ) | (5.1 | ) | (30.5 | ) | (10.2 | ) | ||||||||
Other expenses (1)
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(9.2 | ) | — | (6.7 | ) | — | ||||||||||
Income before income taxes
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119.6 | 145.5 | 273.7 | 272.4 | ||||||||||||
Income tax expense (as revised) (2)
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(40.5 | ) | (45.5 | ) | (89.1 | ) | (84.5 | ) | ||||||||
Net income including noncontrolling interests (as revised) (2)
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79.1 | 100.0 | 184.6 | 187.9 | ||||||||||||
Noncontrolling interests in income of consolidated subsidiaries (as revised) (2)
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(25.5 | ) | (33.2 | ) | (51.3 | ) | (59.0 | ) | ||||||||
Net income attributable to URS
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$ | 53.6 | $ | 66.8 | $ | 133.3 | $ | 128.9 | ||||||||
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Earnings per share:
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||||||||||||||||
Basic
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$ | 0.72 | $ | 0.87 | $ | 1.80 | $ | 1.66 | ||||||||
Diluted
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$ | 0.72 | $ | 0.86 | $ | 1.79 | $ | 1.65 | ||||||||
Weighted-average shares outstanding:
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||||||||||||||||
Basic
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74.2 | 77.2 | 74.1 | 77.8 | ||||||||||||
Diluted
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74.6 | 77.7 | 74.4 | 78.2 | ||||||||||||
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||||||||||||||||
Cash dividends declared per share
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$ | 0.20 | $ | — | $ | 0.40 | $ | — |
(1)
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Other expenses consist of foreign currency losses related to intercompany loans and foreign currency derivatives.
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(2)
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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 12 of this press release.
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Three Months Ended
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Six Months Ended
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June 29,
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July 1,
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June 29,
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July 1,
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||||||||||||
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2012
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2011
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2012
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2011
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||||||||||||
Cash flows from operating activities:
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||||||||||||||||
Net income including noncontrolling interests (as revised) (1)
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$ | 79.1 | $ | 100.0 | $ | 184.6 | $ | 187.9 | ||||||||
Adjustments to reconcile net income to net cash from operating activities:
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||||||||||||||||
Depreciation and amortization
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30.4 | 20.6 | 50.4 | 40.8 | ||||||||||||
Amortization of intangible assets
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25.4 | 15.2 | 42.6 | 28.2 | ||||||||||||
Amortization of debt issuance costs and discount/premium
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1.7 | 1.6 | 2.5 | 3.2 | ||||||||||||
Foreign currency losses related to foreign currency derivatives and intercompany loans
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9.2 | — | 6.7 | — | ||||||||||||
Normal profit
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(3.8 | ) | 2.4 | (2.4 | ) | 3.4 | ||||||||||
Provision for doubtful accounts
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(1.4 | ) | 5.3 | — | 6.6 | |||||||||||
Deferred income taxes
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16.8 | (0.8 | ) | 18.9 | 24.8 | |||||||||||
Stock-based compensation
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10.0 | 10.4 | 21.3 | 22.4 | ||||||||||||
Excess tax benefits from stock-based compensation
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0.4 | (0.1 | ) | — | (0.8 | ) | ||||||||||
Equity in income of unconsolidated joint ventures
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(17.0 | ) | (38.6 | ) | (45.7 | ) | (76.0 | ) | ||||||||
Dividends received from unconsolidated joint ventures
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27.9 | 29.5 | 46.5 | 41.4 | ||||||||||||
Changes in operating assets, liabilities and other, net of effects of business acquisitions:
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||||||||||||||||
Accounts receivable and costs and accrued earnings in excess of billings on contracts
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(19.2 | ) | 24.4 | (97.7 | ) | 23.3 | ||||||||||
Inventory
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1.3 | (2.1 | ) | 0.8 | (6.5 | ) | ||||||||||
Other current assets
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(7.6 | ) | (7.1 | ) | (13.0 | ) | (6.7 | ) | ||||||||
Advances to unconsolidated joint ventures
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4.6 | 5.5 | (1.1 | ) | (3.8 | ) | ||||||||||
Accounts payable, accrued salaries and employee benefits, and other current liabilities (as revised) (1)
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(150.2 | ) | (39.5 | ) | (170.3 | ) | (42.8 | ) | ||||||||
Billings in excess of costs and accrued earnings on contracts
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31.2 | 15.9 | (34.3 | ) | 19.2 | |||||||||||
Other long-term liabilities (as revised) (1)
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1.4 | 8.5 | (2.7 | ) | (3.8 | ) | ||||||||||
Other assets
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(8.9 | ) | 0.9 | 7.8 | 2.1 | |||||||||||
Total adjustments and changes
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(47.8 | ) | 52.0 | (169.7 | ) | 75.0 | ||||||||||
Net cash from operating activities
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31.3 | 152.0 | 14.9 | 262.9 | ||||||||||||
Cash flows from investing activities:
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||||||||||||||||
Payments for business acquisitions, net of cash acquired
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(1,345.7 | ) | (275.9 | ) | (1,345.7 | ) | (278.8 | ) | ||||||||
Proceeds from disposal of property and equipment
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3.5 | 0.7 | 13.0 | 2.2 | ||||||||||||
Payments in settlement of foreign currency forward contract
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(1,260.6 | ) | — | (1,260.6 | ) | — | ||||||||||
Receipts in settlement of foreign currency forward contract
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1,260.3 | — | 1,260.3 | — | ||||||||||||
Investments in unconsolidated joint ventures
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2.0 | (4.8 | ) | (2.0 | ) | (12.0 | ) | |||||||||
Changes in restricted cash
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(1.7 | ) | — | — | (0.3 | ) | ||||||||||
Capital expenditures, less equipment purchased through capital leases and equipment notes
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(31.2 | ) | (20.3 | ) | (49.0 | ) | (31.3 | ) | ||||||||
Net cash from investing activities
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(1,373.4 | ) | (300.3 | ) | (1,384.0 | ) | (320.2 | ) |
Three Months Ended
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Six Months Ended
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|||||||||||||||
June 29,
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July 1,
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June 29,
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July 1,
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|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Borrowings from long-term debt
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— | — | 998.9 | — | ||||||||||||
Payments on long-term debt
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(1.5 | ) | (2.3 | ) | (3.1 | ) | (4.4 | ) | ||||||||
Borrowings from revolving line of credit
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510.0 | 100.0 | 560.0 | 100.0 | ||||||||||||
Payments on revolving line of credit
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(190.0 | ) | (50.0 | ) | (263.6 | ) | (50.0 | ) | ||||||||
Net payments under foreign lines of credit and short-term notes
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2.3 | 13.3 | (6.6 | ) | 5.8 | |||||||||||
Net change in overdrafts
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30.2 | 50.9 | 30.8 | 32.3 | ||||||||||||
Payments on capital lease obligations
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(2.4 | ) | (2.0 | ) | (5.0 | ) | (4.1 | ) | ||||||||
Payments of debt issuance costs
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(0.1 | ) | — | (8.8 | ) | — | ||||||||||
Excess tax benefits from stock-based compensation
|
(0.4 | ) | 0.1 | — | 0.8 | |||||||||||
Proceeds from employee stock purchases and exercises of stock options
|
5.2 | 4.6 | 6.2 | 6.1 | ||||||||||||
Distributions to noncontrolling interests
|
(19.7 | ) | (23.0 | ) | (35.2 | ) | (38.6 | ) | ||||||||
Contributions and advances from noncontrolling interests
|
1.7 | 2.9 | 2.2 | 6.1 | ||||||||||||
Dividends paid
|
(14.9 | ) | — | (14.9 | ) | — | ||||||||||
Repurchases of common stock
|
— | — | (40.0 | ) | (136.7 | ) | ||||||||||
Net cash from financing activities
|
320.4 | 94.5 | 1,220.9 | (82.7 | ) | |||||||||||
Net change in cash and cash equivalents
|
(1,021.7 | ) | (53.8 | ) | (148.2 | ) | (140.0 | ) | ||||||||
Cash and cash equivalents at beginning of period
|
1,309.5 | 487.6 | 436.0 | 573.8 | ||||||||||||
Cash and cash equivalents at end of period
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$ | 287.8 | $ | 433.8 | $ | 287.8 | $ | 433.8 | ||||||||
Supplemental information:
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||||||||||||||||
Interest paid
|
$ | 11.0 | $ | 3.7 | $ | 18.3 | $ | 7.8 | ||||||||
Taxes paid
|
$ | 73.9 | $ | 35.4 | $ | 82.7 | $ | 92.6 | ||||||||
Supplemental schedule of non-cash investing and financing activities:
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||||||||||||||||
Equipment acquired with capital lease obligations and equipment note obligations
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$ | 6.6 | $ | 2.7 | $ | 10.5 | $ | 5.1 | ||||||||
Cash dividends declared but not paid
|
$ | 15.7 | $ | — | $ | 15.7 | $ | — |
(1)
|
We have corrected the previously reported presentation of net income including noncontrolling interests, other long-term liabilities, and accounts payable, accrued salaries and employee benefits, and other current liabilities discussed on page 12 of this press release.
|
|
Three Months Ended
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|||||||||||||||
|
June 29, 2012
|
July 1, 2011
|
||||||||||||||
(In millions, except per share data)
|
Net Income
|
Diluted EPS
|
Net Income
|
Diluted EPS
|
||||||||||||
Before the impact of acquisition-related expenses and other expenses
|
$ | 74.7 | $ | 1.00 | $ | 67.8 | $ | .87 | ||||||||
Acquisition-related expenses, net of tax
|
(11.9 | ) | (.16 | ) | (1.0 | ) | (.01 | ) | ||||||||
Other expenses, net of tax (1)
|
(9.2 | ) | (.12 | ) | — | — | ||||||||||
Net income and diluted EPS
|
$ | 53.6 | $ | .72 | $ | 66.8 | $ | .86 | ||||||||
|
||||||||||||||||
|
Six Months Ended
|
|||||||||||||||
|
June 29, 2012
|
July 1, 2011
|
||||||||||||||
(In millions, except per share data)
|
Net Income
|
Diluted EPS
|
Net Income
|
Diluted EPS
|
||||||||||||
Before the impact of acquisition-related expenses and other expenses
|
$ | 155.2 | $ | 2.08 | $ | 129.9 | $ | 1.66 | ||||||||
Acquisition-related expenses, net of tax
|
(15.2 | ) | (0.20 | ) | (1.0 | ) | (0.01 | ) | ||||||||
Other expenses, net of tax (1)
|
(6.7 | ) | (0.09 | ) | — | — | ||||||||||
Net income and diluted EPS
|
$ | 133.3 | $ | 1.79 | $ | 128.9 | $ | 1.65 |
(1)
|
Other expenses consist of foreign currency losses related to intercompany loans and foreign currency derivatives.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
July 1, 2011
|
July 1, 2011
|
|||||||||||||||||||||||
As Reported
|
Adjustment
|
As Revised
|
As Reported
|
Adjustment
|
As Revised
|
|||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Condensed Consolidated Statements of Operations Data:
|
||||||||||||||||||||||||
Income before income taxes
|
$ | 145.5 | $ | — | $ | 145.5 | $ | 272.4 | $ | — | $ | 272.4 | ||||||||||||
Income tax expense
|
(54.9 | ) | 9.4 | (45.5 | ) | (98.9 | ) | 14.4 | (84.5 | ) | ||||||||||||||
Net income including noncontrolling interests
|
90.6 | 9.4 | 100.0 | 173.5 | 14.4 | 187.9 | ||||||||||||||||||
Noncontrolling interests in income of consolidated subsidiaries
|
(23.8 | ) | (9.4 | ) | (33.2 | ) | (44.6 | ) | (14.4 | ) | (59.0 | ) | ||||||||||||
Net income attributable to URS
|
$ | 66.8 | $ | — | $ | 66.8 | $ | 128.9 | $ | — | $ | 128.9 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
July 1, 2011
|
July 1, 2011
|
|||||||||||||||||||||||
As Reported
|
Adjustment
|
As Revised
|
As Reported
|
Adjustment
|
As Revised
|
|||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows Data:
|
||||||||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||
Net income including noncontrolling interests
|
$ | 90.6 | $ | 9.4 | $ | 100.0 | $ | 173.5 | $ | 14.4 | $ | 187.9 | ||||||||||||
Accounts payable, accrued salaries and employee benefits, and other current liabilities
|
$ | (31.2 | ) | $ | (8.3 | ) | $ | (39.5 | ) | $ | (30.0 | ) | $ | (12.8 | ) | $ | (42.8 | ) | ||||||
Other long-term liabilities
|
$ | 9.6 | $ | (1.1 | ) | $ | 8.5 | $ | (2.2 | ) | $ | (1.6 | ) | $ | (3.8 | ) |
(In millions)
|
Infrastructure &
Environment
|
Federal
Services
|
Energy &
Construction
|
Oil & Gas (1)
|
Total
|
|||||||||||||||
As of June 29, 2012
|
|
|||||||||||||||||||
Backlog
|
$ | 3,174.6 | $ | 3,619.0 | $ | 6,444.3 | $ | 1,049.9 | $ | 14,287.8 | ||||||||||
Option years
|
248.3 | 2,848.0 | 2,045.2 | — | 5,141.5 | |||||||||||||||
Indefinite delivery contracts
|
3,270.1 | 2,559.4 | 1,265.0 | 824.5 | 7,919.0 | |||||||||||||||
Total book of business
|
$ | 6,693.0 | $ | 9,026.4 | $ | 9,754.5 | $ | 1,874.4 | $ | 27,348.3 | ||||||||||
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 |
June 29,
|
December 30,
|
|||||||
(In millions)
|
2012
|
2011
|
||||||
Backlog by market sector:
|
||||||||
Federal
|
$ | 7,331.9 | $ | 8,542.4 | ||||
Infrastructure
|
3,095.7 | 3,011.0 | ||||||
Oil & Gas (1,2)
|
1,598.1 | 383.4 | ||||||
Power
|
1,385.9 | 1,623.8 | ||||||
Industrial (2)
|
876.2 | 699.0 | ||||||
Total backlog
|
$ | 14,287.8 | $ | 14,259.6 |
(1)
|
We completed the acquisition of Flint in May 2012. The operations of Flint have become the Oil & Gas Division of URS Corporation.
|
(2)
|
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.
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
(In millions)
|
June 29,
|
July 1,
|
June 29,
|
July 1,
|
||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenues
|
||||||||||||||||
Infrastructure & Environment
|
$ | 966.3 | $ | 929.5 | $ | 1,930.4 | $ | 1,839.4 | ||||||||
Federal Services (1)
|
718.2 | 668.6 | 1,435.3 | 1,249.8 | ||||||||||||
Energy & Construction
|
777.9 | 810.5 | 1,503.6 | 1,676.8 | ||||||||||||
Oil & Gas (2)
|
277.5 | — | 277.5 | — | ||||||||||||
Inter-segment eliminations
|
(49.2 | ) | (48.3 | ) | (94.6 | ) | (85.9 | ) | ||||||||
Total revenues
|
$ | 2,690.7 | $ | 2,360.3 | $ | 5,052.2 | $ | 4,680.1 | ||||||||
Operating income
|
||||||||||||||||
Infrastructure & Environment
|
$ | 62.6 | $ | 54.3 | $ | 108.6 | $ | 109.9 | ||||||||
Federal Services (1)
|
59.8 | 45.8 | 152.7 | 81.6 | ||||||||||||
Energy & Construction
|
54.8 | 69.5 | 102.9 | 132.5 | ||||||||||||
Oil & Gas (2)
|
3.0 | — | 3.0 | — | ||||||||||||
Corporate
|
(30.7 | ) | (19.0 | ) | (56.3 | ) | (41.4 | ) | ||||||||
Total operating income
|
$ | 149.5 | $ | 150.6 | $ | 310.9 | $ | 282.6 |
(1)
|
The operating results of Apptis Holdings, Inc. (“Apptis”) have been included in our consolidated results since the acquisition on June 1, 2011.
|
(2)
|
The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.
|
(In millions)
|
Federal
|
Infrastructure
|
Oil and Gas (1)
|
Power
|
Industrial (1)
|
Total
|
||||||||||||||||||
Three months ended June 29, 2012
|
|
|
||||||||||||||||||||||
Infrastructure & Environment
|
$ | 175.9 | $ | 391.3 | $ | 135.6 | $ | 52.5 | $ | 173.5 | $ | 928.8 | ||||||||||||
Federal Services (2)
|
717.9 | — | — | — | — | 717.9 | ||||||||||||||||||
Energy & Construction
|
260.2 | 56.7 | 51.1 | 275.2 | 123.3 | 766.5 | ||||||||||||||||||
Oil & Gas (3)
|
— | — | 277.5 | — | — | 277.5 | ||||||||||||||||||
Total
|
$ | 1,154.0 | $ | 448.0 | $ | 464.2 | $ | 327.7 | $ | 296.8 | $ | 2,690.7 | ||||||||||||
|
||||||||||||||||||||||||
Six months ended June 29, 2012
|
||||||||||||||||||||||||
Infrastructure & Environment
|
$ | 355.2 | $ | 775.6 | $ | 260.3 | $ | 107.9 | $ | 357.0 | $ | 1,856.0 | ||||||||||||
Federal Services (2)
|
1,434.9 | — | — | — | — | 1,434.9 | ||||||||||||||||||
Energy & Construction
|
537.2 | 110.4 | 89.6 | 511.8 | 234.8 | 1,483.8 | ||||||||||||||||||
Oil & Gas (3)
|
— | — | 277.5 | — | — | 277.5 | ||||||||||||||||||
Total
|
$ | 2,327.3 | $ | 886.0 | $ | 627.4 | $ | 619.7 | $ | 591.8 | $ | 5,052.2 | ||||||||||||
|
||||||||||||||||||||||||
Three months ended July 1, 2011
|
||||||||||||||||||||||||
Infrastructure & Environment
|
$ | 150.2 | $ | 396.1 | $ | 113.5 | $ | 48.4 | $ | 203.4 | $ | 911.6 | ||||||||||||
Federal Services (2)
|
668.4 | — | — | — | — | 668.4 | ||||||||||||||||||
Energy & Construction
|
341.3 | 82.5 | 36.3 | 207.9 | 112.3 | 780.3 | ||||||||||||||||||
Oil & Gas (3)
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
$ | 1,159.9 | $ | 478.6 | $ | 149.8 | $ | 256.3 | $ | 315.7 | $ | 2,360.3 | ||||||||||||
|
||||||||||||||||||||||||
Six months ended July 1, 2011
|
||||||||||||||||||||||||
Infrastructure & Environment
|
$ | 310.3 | $ | 790.2 | $ | 215.9 | $ | 101.2 | $ | 391.6 | $ | 1,809.2 | ||||||||||||
Federal Services (2)
|
1,249.3 | — | — | — | — | 1,249.3 | ||||||||||||||||||
Energy & Construction
|
664.8 | 188.5 | 97.4 | 455.4 | 215.5 | 1,621.6 | ||||||||||||||||||
Oil & Gas (3)
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
$ | 2,224.4 | $ | 978.7 | $ | 313.3 | $ | 556.6 | $ | 607.1 | $ | 4,680.1 |
(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.
|
(2)
|
The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.
|
(3)
|
The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.
|
·
|
URS Corporation’s (NYSE: URS) acquisition of Flint Energy Services Limited (“Flint”) closed on May 14, 2012. Flint is now the Oil & Gas Division of URS.
|
·
|
URS’ financial results for the second quarter of 2012 reflect the impact of Flint for the seven-week period from the acquisition date through June 29, 2012.
|
·
|
The amount of goodwill created from the acquisition of Flint was $475 million, none of which is expected to be tax deductible.
|
·
|
The total amount allocated to identifiable intangible assets from the acquisition was $266 million.
|
·
|
Revenues from the Oil & Gas Division for the second quarter of 2012 were $277.5 million.
|
·
|
Operating income from the Oil & Gas Division for the second quarter of 2012 was $3.0 million. This includes $8.6 million pre-tax amortization of intangible assets in connection with the Flint acquisition.
|
·
|
Pre-tax acquisition-related expenses were $11.3 million and $16.9 million for the three and six months ended June 29, 2012, respectively.
|
·
|
Pre-tax foreign currency losses related to intercompany loans and foreign currency derivatives were $9.2 million for the second quarter of 2012.
|
·
|
URS Oil & Gas Division’s Book of Business
|
(In millions)
|
Acquisition Date
|
Quarter Ended
|
||||||
As of:
|
May 14, 2012
|
June 29, 2012
|
||||||
Backlog
|
$ | 980.7 | $ | 1,049.9 | ||||
Indefinite delivery contracts
|
790.7 | 824.5 | ||||||
Total book of business
|
$ | 1,771.4 | $ | 1,874.4 |
·
|
URS’ amortization of intangible assets is expected to be approximately $100 million for the 2012 fiscal year and approximately $110 million for the 2013 fiscal year.
|