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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□
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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□
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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□
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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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□
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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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URS CORPORATION | |||
Dated: May 13, 2014
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By:
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/s/ Reed N. Brimhall | |
Reed N. Brimhall | |||
Vice President and Chief Accounting Officer | |||
Exhibit No.
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Description
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99.1
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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
Jamie Tully/Delia Cannan
(212) 687-8080
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·
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Revenues were $2.5 billion.
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·
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Operating Income was $87 million.
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·
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Net Income was $27 million, or $0.37 per share on a diluted basis (“GAAP EPS”).
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Cash Earnings per Share* (“Cash EPS”) was $0.60.
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Earnings before Interest, Taxes, Depreciation and Amortization* (“EBITDA”) was $131 million.
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·
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Cash Used for Operations was $132 million.
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Book of business at the end of the quarter was $23.0 billion, including backlog of $11.2 billion.
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·
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Company repurchased 5.7 million shares for $266 million.
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April 4, 2014
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January 3, 2014
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ASSETS
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Current assets:
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||||||
Cash and cash equivalents
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$ | 231 | $ | 284 | ||||
Accounts receivable, including retentions of $126 and $117, respectively
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1,377 | 1,393 | ||||||
Costs and accrued earnings in excess of billings on contracts
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1,653 | 1,521 | ||||||
Less receivable allowances
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(54 | ) | (65 | ) | ||||
Net accounts receivable
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2,976 | 2,849 | ||||||
Other current assets
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245 | 258 | ||||||
Total current assets
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3,452 | 3,391 | ||||||
Investments in and advances to unconsolidated joint ventures
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239 | 245 | ||||||
Property and equipment, net of accumulated depreciation of $699 and $676, respectively
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597 | 608 | ||||||
Intangible assets, net
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541 | 570 | ||||||
Goodwill
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3,693 | 3,696 | ||||||
Other long-term assets
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207 | 208 | ||||||
Total assets
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$ | 8,729 | $ | 8,718 | ||||
LIABILITIES AND EQUITY
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||||||||
Current liabilities:
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||||||||
Current portion of long-term debt
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$ | 48 | $ | 45 | ||||
Accounts payable and subcontractors payable, including retentions of $28 and $29, respectively
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622 | 688 | ||||||
Accrued salaries and employee benefits
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473 | 507 | ||||||
Billings in excess of costs and accrued earnings on contracts
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241 | 233 | ||||||
Other current liabilities
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336 | 366 | ||||||
Total current liabilities
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1,720 | 1,839 | ||||||
Long-term debt
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2,069 | 1,667 | ||||||
Deferred tax liabilities
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442 | 444 | ||||||
Self-insurance reserves
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126 | 127 | ||||||
Pension and post-retirement benefit obligations
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282 | 286 | ||||||
Other long-term liabilities
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125 | 128 | ||||||
Total liabilities
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4,764 | 4,491 | ||||||
Commitments and contingencies
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URS stockholders’ equity:
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Preferred stock, authorized 3 shares; no shares outstanding
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— | — | ||||||
Common stock, par value $.01; authorized 200 shares; 89 and 89 shares issued, respectively; and 69 and 75 shares outstanding, respectively
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1 | 1 | ||||||
Treasury stock, 20 and 14 shares at cost, respectively
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(854 | ) | (588 | ) | ||||
Additional paid-in capital
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3,046 | 3,038 | ||||||
Accumulated other comprehensive loss
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(217 | ) | (201 | ) | ||||
Retained earnings
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1,843 | 1,831 | ||||||
Total URS stockholders’ equity
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3,819 | 4,081 | ||||||
Noncontrolling interests
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146 | 146 | ||||||
Total stockholders’ equity
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3,965 | 4,227 | ||||||
Total liabilities and stockholders’ equity
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$ | 8,729 | $ | 8,718 |
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Three Ended
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April 4,
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March 29,
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||||||
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2014
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2013
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||||||
Revenues
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$ | 2,537 | $ | 2,803 | ||||
Cost of revenues
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(2,447 | ) | (2,651 | ) | ||||
General and administrative expenses
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(22 | ) | (23 | ) | ||||
Equity in income of unconsolidated joint ventures
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19 | 24 | ||||||
Operating income
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87 | 153 | ||||||
Interest expense
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(18 | ) | (21 | ) | ||||
Other expenses
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(4 | ) | (3 | ) | ||||
Income before income taxes
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65 | 129 | ||||||
Income tax expense
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(26 | ) | (42 | ) | ||||
Net income including noncontrolling interests
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39 | 87 | ||||||
Noncontrolling interests in income of consolidated subsidiaries
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(12 | ) | (15 | ) | ||||
Net income attributable to URS
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$ | 27 | $ | 72 | ||||
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Earnings per share:
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Basic
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$ | 0.38 | $ | 0.97 | ||||
Diluted
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$ | 0.37 | $ | 0.96 | ||||
Weighted-average shares outstanding:
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Basic
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71.6 | 74.4 | ||||||
Diluted
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72.1 | 74.9 | ||||||
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Cash dividends declared per share
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$ | 0.22 | $ | 0.21 |
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Three Months Ended
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April 4,
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March 29,
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2014
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2013
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Cash flows from operating activities:
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Net income including noncontrolling interests
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$ | 39 | $ | 87 | ||||
Adjustments to reconcile net income to net cash from operating activities:
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Depreciation and amortization
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35 | 40 | ||||||
Amortization of intangible assets
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25 | 28 | ||||||
Gain on disposal of property and equipment
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(1 | ) | (1 | ) | ||||
Deferred income taxes
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(7 | ) | (7 | ) | ||||
Stock-based compensation
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6 | 11 | ||||||
Equity in income of unconsolidated joint ventures
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(19 | ) | (24 | ) | ||||
Dividends received from unconsolidated joint ventures
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19 | 23 | ||||||
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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(136 | ) | 90 | |||||
Other current assets
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2 | 4 | ||||||
Other long-term assets
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9 | (91 | ) | |||||
Accounts payable, accrued salaries and employee benefits, and other current liabilities
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(103 | ) | (130 | ) | ||||
Billings in excess of costs and accrued earnings on contracts
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7 | (15 | ) | |||||
Other long-term liabilities
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(8 | ) | 35 | |||||
Total adjustments and changes
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(171 | ) | (37 | ) | ||||
Net cash from operating activities
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(132 | ) | 50 | |||||
Cash flows from investing activities:
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Proceeds from disposal of property and equipment
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4 | 3 | ||||||
Changes in restricted cash
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1 | 2 | ||||||
Capital expenditures, less equipment purchased through capital leases and equipment notes
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(15 | ) | (25 | ) | ||||
Net cash from investing activities
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(10 | ) | (20 | ) |
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Three Months Ended
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April 4,
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March 29,
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2014
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2013
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Cash flows from financing activities:
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Payments on long-term debt
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(2 | ) | (1 | ) | ||||
Borrowings from revolving line of credit
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496 | 255 | ||||||
Payments on revolving line of credit
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(109 | ) | (235 | ) | ||||
Net payments on other indebtedness
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(5 | ) | (7 | ) | ||||
Net change in overdrafts
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2 | (31 | ) | |||||
Proceeds from employee stock purchases and exercises of stock options
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1 | 6 | ||||||
Distributions to noncontrolling interests
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(14 | ) | (15 | ) | ||||
Dividends paid
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(15 | ) | (15 | ) | ||||
Repurchases of common stock
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(266 | ) | (45 | ) | ||||
Net cash from financing activities
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88 | (88 | ) | |||||
Net change in cash and cash equivalents
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(54 | ) | (58 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents
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1 | (8 | ) | |||||
Cash and cash equivalents at beginning of period
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284 | 315 | ||||||
Cash and cash equivalents at end of period
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$ | 231 | $ | 249 | ||||
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Supplemental information:
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Interest paid
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$ | 28 | $ | 6 | ||||
Taxes paid
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$ | 6 | $ | 10 | ||||
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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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$ | 19 | $ | 18 | ||||
Cash dividends declared but not paid
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$ | 18 | $ | 16 |
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Three Months Ended
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April 4, 2014
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March 29, 2013
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(In millions, except per share data)
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Cash EPS
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$ | 0.60 | $ | 1.22 | |||||
Intangible amortization expense, net of tax(1)
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(0.23 | ) | (0.26 | ) | |||||
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GAAP EPS
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$ | 0.37 | $ | 0.96 | ||||
__________________
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(1)
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Amounts are net of tax effects of $0.12 and $0.11 for the three months ended April 4, 2014 and March 29, 2013, respectively.
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Guidance for
Fiscal Year Ending on
January 2, 2015
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(In millions, except per share data)
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Lower Range
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Upper Range
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Cash EPS
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$ | 4.13 | $ | 4.43 | |||||
Intangible amortization expense, net of tax(2)
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(0.93 | ) | (0.93 | ) | |||||
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GAAP EPS
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$ | 3.20 | $ | 3.50 | ||||
__________________
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(2)
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Amounts are net of tax effects of $0.46 for both ranges.
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Three Months Ended
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April 4, 2014
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March 29, 2013
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(In millions)
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EBITDA
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$
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131
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$
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203
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Interest expense
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(18)
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(21)
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Income tax expense
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(26)
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(42)
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Depreciation and amortization
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(35)
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(40)
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Amortization of intangible assets
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(25)
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(28)
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Net income attributable to URS
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$
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27
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$
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72
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(In millions)
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Infrastructure &
Environment
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Federal
Services
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Energy &
Construction
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Oil & Gas
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Total
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As of April 4, 2014
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Backlog
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$ | 3,079 | $ | 4,213 | $ | 3,392 | $ | 494 | $ | 11,178 | ||||||||||
Option years
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143 | 3,932 | 76 | — | 4,151 | |||||||||||||||
Indefinite delivery contracts
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3,002 | 3,400 | 136 | 1,127 | 7,665 | |||||||||||||||
Total book of business
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$ | 6,224 | $ | 11,545 | $ | 3,604 | $ | 1,621 | $ | 22,994 | ||||||||||
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As of January 3, 2014(1)
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Backlog
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$ | 2,851 | $ | 4,284 | $ | 3,705 | $ | 462 | $ | 11,302 | ||||||||||
Option years
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146 | 3,734 | 76 | — | 3,956 | |||||||||||||||
Indefinite delivery contracts
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3,081 | 3,150 | 131 | 1,187 | 7,549 | |||||||||||||||
Total book of business
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$ | 6,078 | $ | 11,168 | $ | 3,912 | $ | 1,649 | $ | 22,807 |
(1)
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We revised the prior period amounts to conform to our current period presentation to reflect the realignment of our operations among our divisions.
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April 4,
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January 3,
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||||||
(In millions)
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2014
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2014
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Backlog by market sector:
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Federal
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$ | 4,820 | $ | 4,891 | ||||
Infrastructure
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2,745 | 2,683 | ||||||
Oil and Gas
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1,123 | 1,102 | ||||||
Power
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1,245 | 1,339 | ||||||
Industrial
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1,245 | 1,287 | ||||||
Total backlog
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$ | 11,178 | $ | 11,302 |
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Three Months Ended
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(In millions)
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April 4,
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March 29,
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||||||
2014
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2013
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Revenues(1)
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Infrastructure & Environment
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$ | 850 | $ | 898 | ||||
Federal Services
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649 | 907 | ||||||
Energy & Construction
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544 | 538 | ||||||
Oil & Gas
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514 | 508 | ||||||
Inter-segment eliminations
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(20 | ) | (48 | ) | ||||
Total revenues
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$ | 2,537 | $ | 2,803 | ||||
Operating income(1)
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Infrastructure & Environment
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$ | 36 | $ | 40 | ||||
Federal Services
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57 | 115 | ||||||
Energy & Construction
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5 | 12 | ||||||
Oil & Gas
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11 | 9 | ||||||
Corporate
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(22 | ) | (23 | ) | ||||
Total operating income
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$ | 87 | $ | 153 |
(1)
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We revised the prior period amounts to conform to our current period presentation to reflect the realignment of our operations among our divisions.
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(In millions)
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Federal
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Infrastructure
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Oil and Gas
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Power
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Industrial
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Total
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Three months ended April 4, 2014
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Infrastructure & Environment
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$ | 99 | $ | 423 | $ | 106 | $ | 55 | $ | 161 | $ | 844 | ||||||||||||
Federal Services
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647 | — | — | — | 1 | 648 | ||||||||||||||||||
Energy & Construction
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3 | 67 | 153 | 199 | 115 | 537 | ||||||||||||||||||
Oil & Gas
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1 | — | 499 | 6 | 2 | 508 | ||||||||||||||||||
Total
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$ | 750 | $ | 490 | $ | 758 | $ | 260 | $ | 279 | $ | 2,537 | ||||||||||||
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Three months ended March 29, 2013 (1)
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Infrastructure & Environment
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$ | 163 | $ | 383 | $ | 114 | $ | 40 | $ | 170 | $ | 870 | ||||||||||||
Federal Services
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902 | — | — | — | 3 | 905 | ||||||||||||||||||
Energy & Construction
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3 | 53 | 191 | 168 | 106 | 521 | ||||||||||||||||||
Oil & Gas
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— | — | 498 | 6 | 3 | 507 | ||||||||||||||||||
Total
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$ | 1,068 | $ | 436 | $ | 803 | $ | 214 | $ | 282 | $ | 2,803 |
(1)
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We revised the prior period amounts to conform to our current period presentation to reflect the realignment of our operations among our divisions.
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