URS Corporation Reports Fiscal 2006 Year-End Results.Revenues Increased 8% from 2005 Company Provides Guidance For 2007 SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- URS URS Yours URS Ultimate Roulette System URS Uniform Reporting System URS User Requirement(s) Specification URS Undergraduate Research Symposium URS Unified Registration Statement URS Undergraduate Research Scholars Corporation (NYSE NYSE See: New York Stock Exchange : URS) today reported its financial results for the fiscal year ended December 29, 2006. Revenues increased 8% to $4.24 billion from $3.92 billion in fiscal 2005. Net income for fiscal 2006 was $113.0 million, or $2.19 per share, fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. . The Company's net income and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for fiscal 2006 include an after tax impact of $10.6 million, or $0.20 per share, related to stock-based compensation expense under Statement of Financial Accounting Standards 123 (Revised) ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123(R)"), which requires that costs of stock-based compensation be recognized as an expense in financial statements. Net income and EPS for fiscal 2005 were $82.5 million, or $1.72 per share, fully diluted, including an after-tax debt extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. charge of $19.1 million, or $0.42 per share, related to $127.2 million of note redemptions, the retirement of $10.0 million of the Company's 12i% notes and $1.8 million of its 6u% debentures, and the restructuring of its senior credit facility. After adjusting for these items, net income and EPS for fiscal 2006 increased 28% and 13%, respectively, from fiscal 2005. The Company repaid $150 million of debt during fiscal 2006. As a result, the Company's debt to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. ratio improved to 10% at December 29, 2006, from 19% at December 30, 2005. As of December 29, 2006, the Company's backlog was $4.64 billion, compared to $3.84 billion as of December 30, 2005. Commenting on the Company's financial results, Martin M. Koffel, Chairman and Chief Executive Officer, stated: "2006 was an outstanding year for URS, highlighted by growth in each of our market sectors and the highest revenue and net income in the Company's history. Our results reflect the continued success of our diversified business portfolio and our strong relationships with private and public sector clients around the world." Mr. Koffel continued: "The outlook for our business remains positive, based on our record book of business and the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. long-term trends across each of our market sectors. Federal spending for defense and homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States remains strong, and the healthy state budget picture, along with recently-approved bond measures in our key states, are driving additional demand for state and local infrastructure improvement projects. In addition, our private sector business continues to benefit from our Master Service Agreement relationships, favorable economic conditions and our ability to help companies comply with more stringent environmental regulations in areas such as emissions control Emissions control may refer to:
Weighted-average shares outstanding for purposes of calculating diluted EPS were 51.7 million in fiscal 2006, compared with 47.8 million in fiscal 2005. The increase in weighted-average shares outstanding in 2006 is the result of additional shares issued pursuant to the Company's 1999 Equity Incentive Plan and Employee Stock Purchase Plan, and the effect of the weighted average share impact resulting from the Company's stock offering in June 2005. For the fourth quarter of fiscal 2006, the Company reported revenues of $1.09 billion, net income of $26.3 million, and diluted EPS of $0.51. For the fourth quarter of fiscal 2005, the Company reported revenues of $1.07 billion, net income of $25.9 million, and diluted EPS of $0.51. The Company's net income and EPS for the fourth quarter of fiscal 2006 include an after tax impact of $3.4 million, or $0.06 per share, related to stock-based compensation expense under SFAS 123(R). Weighted-average shares outstanding for purposes of calculating diluted EPS were 52.0 million in the fourth quarter of fiscal 2006, compared with 50.4 million in the fourth quarter of fiscal 2005. Business Segments In addition to providing consolidated financial results, the Company provides separate financial information for its two segments: the URS Division and the EG&G Division. The URS Division includes the Company's work in the state and local government market, the private sector and the international business. In addition, the URS Division includes a portion of the Company's federal business, consisting primarily of facilities and environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, . The EG&G Division primarily serves the federal government market, providing a range of operations and maintenance and technical support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . URS Division. For fiscal 2006, the URS Division reported revenues of $2.80 billion and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $191.7 million, including a pre-tax charge of $10.8 million related to stock-based compensation, compared to revenues of $2.56 billion and operating income of $194.2 million for fiscal 2005. For the fourth quarter of fiscal 2006, the URS Division reported revenues of $741.7 million and operating income of $48.7 million, including a pre-tax charge of $2.7 million related to stock-based compensation, compared to revenues of $701.5 million and operating income of $56.6 million for the fourth quarter of fiscal 2005. EG&G Division. For fiscal 2006, the EG&G Division reported revenues of $1.45 billion and operating income of $71.4 million, including a pre-tax charge of $2.2 million related to stock-based compensation, compared to revenues of $1.37 billion and operating income of $63.4 million for fiscal 2005. For the fourth quarter of fiscal 2006, the EG&G Division reported revenues of $347.1 million and operating income of $14.0 million, including a pre-tax charge of $0.6 million related to stock-based compensation, compared to revenues of $372.8 million and operating income of $15.9 million for the fourth quarter of fiscal 2005. Earnings Outlook The Company expects its fiscal 2007 revenues to be approximately $4.65 billion. Assuming it meets this revenue expectation, the Company expects that net income will be approximately $128 million and EPS will be in the range of $2.40 to $2.45 for fiscal 2007. The Company expects that the distribution of EPS on a quarterly basis will approximate that of prior years. In addition, the Company expects its effective tax rate in 2007 to be approximately 42.0%, compared to 42.6% in 2006. Finally, the Company's weighted average shares outstanding for 2007 is expected to be 53.2 million, compared with 51.7 million in 2006. This press release contains certain non-GAAP financial measures for net income and earnings per share showing the effects of the Company's stock offerings, its note redemptions and refinancing Refinancing An extension and/or increase in amount of existing debt. , and the impact of SFAS 123(R), which are reconciled against the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure in the tables attached to the end of this press release. Webcast Information URS will host a dial-in conference call on Wednesday, February 28, 2007 at 11:00 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) to discuss its fourth quarter and year-end fiscal 2006 results. A live webcast of this call will be available on the investor relations Investor relations The process by which the corporation communicates with its investors. portion of URS' website at www.urscorp.com. URS Corporation offers a comprehensive range of professional planning and design, systems engineering and technical assistance, program management, construction management, and operations and maintenance services for transportation, commercial/ industrial, facilities, environmental, water/wastewater, homeland security, installations and logistics, and defense systems. Headquartered in San Francisco, the Company operates in more than 20 countries with approximately 29,300 employees providing engineering and technical services to federal, state and local governmental agencies as well as private clients in the chemical, pharmaceutical, oil and gas, power, manufacturing, mining and forest products industries (www.urscorp.com). Statements contained in this earnings release that are not historical facts may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future revenues, future earnings, future tax rates, future outstanding shares, future debt repayment and future economic and industry conditions. The Company believes that its expectations are reasonable and are based on reasonable assumptions. However, such forward-looking statements by their nature involve risks and uncertainties that could cause actual results to differ materially from the results predicted. The potential risks and uncertainties include, but are not limited to: an economic downturn; changes in the Company's book of business; the Company's compliance with government contract procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. regulations; the Company's ability to procure To cause something to happen; to find and obtain something or someone. Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person government contracts; the Company's reliance on government appropriations; the ability of the government to unilaterally terminate the Company's contracts; the Company's ability to make accurate estimates and control costs; the Company's ability to win or renew contracts; the Company's and its partners' ability to bid on, win, perform and renew contracts and projects; environmental issues and liabilities; liabilities for pending and future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; the impact of changes in laws and regulations; a decline in defense spending; industry competition; the Company's ability to attract and retain key individuals; employee, agent or partner misconduct; risks associated with changes in equity-based compensation requirements; the Company's leveraged position and ability to service its debt; risks associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; business activities in high security risk countries; third party software risks; terrorist and natural disaster risks; the Company's relationships with its labor unions labor union: see union, labor. ; the Company's ability to protect its intellectual property rights; anti-takeover risks and other factors discussed more fully in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 29, 2006, as well as in other reports subsequently filed from time to time with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] URS CORPORATION AND SUBSIDIARIES RECONCILIATION SCHEDULE OF NET INCOME AND EARNINGS PER SHARE BEFORE ACCOUNTING FOR CERTAIN TRANSACTIONS In our earnings release for the fiscal year ended December 29, 2006, we presented the impacts of the charges related to SFAS 123(R) on fiscal year and fourth quarter 2006 net income and earnings per share ("EPS") and compared the fiscal year 2006 amounts to comparable fiscal year 2005 results. Net income and EPS amounts, excluding the effects of SFAS 123(R) expense, are not computed in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP"). We presented these amounts to demonstrate the recent impact of SFAS 123(R) on our financial statements. For comparison, the fiscal year 2005 net income and EPS amounts excluded the effects of (1) the additional four million shares resulting from the Company's stock offering; (2) the $19 million charge, net of tax, related to the costs of the Company's note redemptions; and (3) the $5 million, net of tax, in interest savings the Company realized during fiscal year 2005 as a result of the note redemptions. These non-GAAP measures, which provide comparability to prior year amounts, are used by investors to evaluate and measure the underlying performance of our business. Net income and EPS excluding the effects of these items should not be used as a substitute for net income and earnings per share prepared in conformity with GAAP, or as a GAAP measure of profitability. Net income and EPS excluding the effects of these non-GAAP measures are calculated as follows: [TABLE OMITTED] [TABLE OMITTED] |
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