URS Corp. (URS) 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
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.
Segment Result
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.
Federal Services 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.
The 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 quarter.
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