URS Corporation reports first quarter 2011 results

SAN FRANCISCO — URS Corporation reported its financial results for the first quarter of fiscal 2011, which ended on April 1, 2011. Revenues for the quarter were $2.32 billion, compared with the $2.21 billion recorded during the first quarter of 2010. Operating income for the quarter was $132.1 million, compared with the $125.2 million reported in the year-ago period. Net income was $62.1 million compared with $95.6 million reported in the first quarter of 2010. Diluted earnings per share (EPS) were $0.79, compared with the $1.17 reported in the first quarter of last year. Financials for the first quarter of the 2011 fiscal year include results from Scott Wilson, which was acquired in the third quarter of fiscal 2010.

Financial results for the first quarter of 2010 included a reduction in the company’s effective income tax rate, resulting from the company’s decision to reinvest all of the earnings of its international operations indefinitely, as part of its strategy to expand its business globally. This reduction in income tax expense resulted in a $42.1 million increase in net income attributable to URS. Excluding this reduction in income tax expense, net income for the first quarter of 2010 would have been $53.5 million and EPS would have been $0.66.

The company’s backlog was $16.3 billion at the end of the first quarter of 2011, compared with $16.6 billion as of Dec. 31, 2010, the last day of the company’s 2010 fiscal year. The company ended the quarter with a book of business of $28.5 billion, compared with $29.1 billion at the end of fiscal 2010.

Commenting on the company’s financial results, Martin M. Koffel, chairman and CEO, stated: "We are particularly pleased that, after adjusting for the reduction in the 2010 income tax rate, our net income and earnings per share grew significantly when compared with the first quarter of last year. We also are pleased by our revenue growth in both the power and industrial and commercial sectors. Clients in these sectors are beginning to move forward on capital projects that had been deferred during the economic downturn. In addition, our work providing environmental and engineering services to these clients under long-term Master Services Agreements has continued to grow. Revenues from our infrastructure sector also were strong, primarily reflecting the expansion of our international business last year, while federal-sector revenues were essentially flat compared to the first quarter of last year."

Business segment results
In addition to providing consolidated financial results, URS reports separate financial information for its three segments: Infrastructure & Environment, Federal Services, and Energy & Construction. The Infrastructure & Environment segment includes program management, planning, design and engineering, construction management, and operations and maintenance services in the federal, infrastructure, and industrial and commercial markets. The Federal Services segment primarily includes program management, planning, systems engineering and technical assistance, construction and construction management, operations and maintenance, and decommissioning and closure services to the U.S. Departments of Defense, State, Homeland Security and Treasury, NASA, and other federal agencies. The Energy & Construction segment includes program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to clients in the power, infrastructure, industrial and commercial, and federal markets.

Infrastructure & Environment — For the first quarter of 2011, the Infrastructure & Environment segment reported revenues of $909.9 million and operating income of $55.7 million, compared with revenues of $775.1 million and operating income of $51.4 million for the corresponding period in 2010.

Federal Services — For the first quarter of 2011, the Federal Services segment reported revenues of $581.1 million and operating income of $35.8 million, compared with revenues of $637.5 million and operating income of $35.7 million for the corresponding period in 2010.

Energy & Construction — For the first quarter of 2011, the Energy & Construction segment reported revenues of $866.4 million and operating income of $63.0 million, compared with revenues of $808.1 million and operating income of $58.4 million for the corresponding period in 2010.

Outlook for the remainder of Fiscal 2011
URS reaffirmed its expectation that fiscal 2011 revenues will be between $9.8 billion and $10.0 billion and that EPS will be in the range of $3.60 to $3.70.