URS Suffers Loss on Goodwill Charge - Analyst Blog
February 28 2012 - 9:15AM
Zacks
URS Corp. (URS)
reported fourth-quarter fiscal 2011 earnings per share of 37 cents
compared with 75 cents in fourth-quarter 2010. The Zacks Consensus
Estimate was way up higher at 98 cents.
During the quarter, the company
recorded a goodwill impairment charge of 43 cents per share.
Earnings for the quarter also include a non-cash, after-tax charge
of $0.02 per share, related to the retirement of the company’s
prior credit facility and a $0.07 per share, after-tax charge
related to the restructuring of URS’ international operations in
Europe. Excluding these charges, earnings per share would have been
89 cents in the quarter.
For 2011, the company reported a
loss per share of $6.03 compared with earnings per share of $3.54
in 2010. The Zacks Consensus Estimate was earnings of $3.63.
Excluding 2 cents per share related
to the retirement of the company’s prior credit facility, 7 cents
per share of after-tax charge related to the restructuring of URS’
international operations in Europe and 1 cent per share of
after-tax charge related to acquisition expenses, earnings per
share for the year were $3.53.
Total Revenue
Total revenue in the quarter was
$2.39 billion compared with $2.38 billion in the prior-year
quarter.
For 2011, total revenue was $9.55
billion compared with $9.18 billion a year ago. URS Corp.’s backlog
was $14.3 billion at the end of 2011 compared with $16.6 billion at
the end of 2010.
Segment Result
Infrastructure and
Environment revenue in the quarter was $943.8 million
compared with $895.1 million in the prior-year quarter.
Federal Services revenue was $726.5 million
compared with $647.8 million a year ago. Energy and
Construction revenue was $722.9 million compared with
$837.2 million in the prior-year period.
Income and
Expenses
Operating income in the quarter was
$114.1 million compared with $122.4 million in the prior-year
quarter. General and administrative expenses were $19.6 million
compared with $15.9 million a year ago.
Balance Sheet and Cash
Flow
Cash and cash equivalents were
$436.0 million at the end of the year compared with $573.8 million
at the end of 2010. Long-term debt was $737.0 million compared with
$641.3 million and shareowners equity was $3.48 billion compared
with $4.20 billion at the end of 2010.
Outlook
The company expects its 2012
revenue to be in the range of $9.9 billion to $10.1 billion and EPS
in the band of $3.95 and $4.05.
URS Corp. was originally
incorporated in California on May 1, 1957 as Broadview Research
Corporation. On May 18, 1976, it was re-incorporated in Delaware
under the name URS Corporation. The name “URS Corporation” was
formally adopted on February 21, 1990. URS Corp. provides
engineering, construction and technical services. As such, it
offers a broad range of program management, planning, design,
engineering, construction and construction management, operations
and maintenance, and decommissioning and closure services to public
agencies and private sector clients globally. It is also a major
U.S. federal government contractor in the areas of systems
engineering and technical assistance, and operations and
maintenance. Major competitors of URS are AECOM Technology
Corporation (ACM), Fluor Corporation
(FLR) and KBR Inc. (KBR).
We currently maintain our Neutral
rating on URS Corp. with a Zacks #2 Rank (short-term Buy
recommendation) over the next one-to-three months.
AECOM TECH CORP (ACM): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
KBR INC (KBR): Free Stock Analysis Report
URS CORP (URS): Free Stock Analysis Report
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