) reported fourth-quarter 2012 recurring earnings per share of 95
cents a share, 4.0% below the Zacks Consensus Estimate of 99
cents but soared 156.7% year over year. Profits during the
quarter were primarily driven by strong activity in the company's
oil and gas business.
Earnings of $4.17 a share in full year 2012 were 0.5% higher
than the Zacks Consensus Estimate of $4.15 a share, driven by
strong business across the company's segments and synergies from
the acquisition of Flint Energy. During fiscal 2011, the company
posted a loss of $6.03 a share due to goodwill impairment charges
and restructuring related charges.
Total revenue in the quarter was $2.97 billion, up 24.2%
compared with $2.39 billion in the prior-year quarter. Revenue in
the quarter was aided by strong performance of the federal sector
and the oil and gas businesses.
Backlog at the end of 2012 was $13.2 billion compared with
$14.3 billion at the end of Dec 30, 2011.
Infrastructure and Environment
revenue in the quarter was $941.0 million, down 3.1% from $970.8
million in the prior-year quarter. The segment continues to bear
the brunt of the slowdown in the Infrastructure market. However,
there has been a steady recovery in the Infrastructure industry
with new opportunities in highway, transit, airports and other
public infrastructure projects.
revenue was $603.5 million, down 17% from $726.8 million a year
ago. The decline in the Federal services reflects the continuing
delay in procurement decisions and reduction in anticipated
spending against previously awarded contracts.
Energy and Construction
revenue was $853.0 million, up 16.9% from $866.4 million in the
prior-year period. The segment revenue was primarily driven by
growth in the emission control projects, modification on nuclear
facilities and transmission and distribution projects.
Oil & Gas segment
reported revenues of $605.4 million, driven by the Flint
acquisition and the strong pipeline of EPC opportunities. In the
fourth quarter, 29% of the consolidated revenues came from the
oil & gas market, providing URS with the strategic balance
for continued growth.
URS' consolidated energy revenue (power and oil gas)
contributed approximately 42% of the total revenue in the fourth
Income and Expenses
Operating income in the quarter was $171.4 million, up 50.2%
from $114.1 million in the prior-year quarter. General and
administrative expenses were $21.6 million compared with $19.6
million a year ago.
Balance Sheet and Cash Flow
Cash and cash equivalents were $314.5 million as on December
28, 2012 compared with $436.0 million at the end of 2011.
Long-term debt was $2.0 billion as on December 28, 2012 compared
with $737 million and shareowners equity was $3.76 billion
compared with $3.48 billion at the end of 2011.
The board of directors approved a 5% increase in its regular
quarterly cash dividend to 21 cents per common share. The
dividend will be paid on Apr 5, 2013 to shareholders of record as
of Mar 15, 2013.
URS expects full year 2013 consolidated revenues to be between
$11.8 billion and $12.2 billion. The company expects EPS to be
between $4.25 and $4.75 a share, on a fully diluted basis.
URS Corporation currently has a Zacks Rank #3 (Sell). Its
close rivals such as
Quanta Services Inc
) currently has a Zacks Rank #1 (Strong Buy) while
Jacobs Engineering Group
Aecom Technology Corporation
) have a Zacks Rank #2 (Buy).
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