QUOTE AND NEWS
SeekingAlpha  Mar 8  Comment 
By David Zanoni: Segment Analysis URS Corporation (URS) is a global provider of engineering, construction, and technical services. The business is divided into the following segments: Federal Services, Oil & Gas, Infrastructure, Industrial,...
SeekingAlpha  Mar 4  Comment 
URS Corporation (URS) Q4 2013 Results Earnings Conference Call March 03, 2014 05:00 PM ET Executives Thomas Hicks - Chief Financial Officer Martin Koffel - Chairman and CEO George Nash - President of Energy & Construction ...
SeekingAlpha  Mar 3  Comment 
Complete Story »
StreetInsider.com  Mar 3  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Dividends/URS+Corp.+%28URS%29+Raises+Quarterly+Dividend+4.8%25+to+%240.22%3B+1.9%25+Yield/9238063.html for the full story.
StreetInsider.com  Mar 3  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/URS+Corp.+%28URS%29+Tops+Q4+EPS+by+7c/9238052.html for the full story.
TheStreet.com  Feb 13  Comment 
NEW YORK (TheStreet) -- URS Corporation  is plummeting on Thursday after management downwardly revised its 2013 guidance. By noon, shares had plunged 12.6% to $43.13. The construction services provider announced it expects to report full-year...
Wall Street Journal  Feb 12  Comment 
URS Corp. lowered its outlook for 2013 earnings, citing execution issues in its new oil-and-gas division, as well as project delays.
StreetInsider.com  Feb 12  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Guidance/URS+Corporation+%28URS%29+Guides+FY13+EPS%2C+Revs+Roughly+In-Line+With+Views/9161358.html for the full story.
Biomass Magazine  Feb 5  Comment 
Elevance Renewable Sciences Inc. has selected URS Corp. to provide engineering, procurement and construction (EPC) services for its biorefinery in Natchez, Miss. URS will convert Elevance's existing biodiesel plant into a new biorefinery.
DailyFinance  Jan 6  Comment 
URS Corporation (NYSE: URS) today announced that on January 3, 2014, it completed its offer to exchange up to $400 million aggregate principal amount of its newly issued 3.850% Senior Notes due 2017 and up to $600 million...




 

The URS Corporation (URS) manages engineering, construction and technical ventures for corporations worldwide; specifically, the company specializes in program management, construction management, operations and maintenance, and decommissioning & closure projects.[1] The company generated $5.383 billion in 2007 revenue (up 27.5% from 2006) from four sources – US Federal Government contracts (41% of revenue), US State and Local Government contracts (21% of revenue), US Private Industry contracts (27% of revenue), and International Government and Corporation contracts (11% of revenue).[2]

Also in 2007, URS’ backlog (unrecognized yet received revenue ie partial prepayment) grew to $18.7 billion from $4.6 billion in 2006. [3] Backlog represents a key metric in the general contracting industry in illustrating the future revenue stream. Partial prepayments to URS Corporation for individual projects foreshadow future payments as these ventures are completed.

Between 2006 and 2007, demand in the electrical and mechanical construction services industry grew due to the desire of businesses to deeply integrate computer operations into their informational infrastructure as well as legal measures requiring corporations to amplify their environmental and energy conservation efforts.[4] In particular, this created opportunities for electrical and mechanical services in the non-residential construction arena.[5] In 2007, total spending in the United States for non-residential construction exceeded $630.0 billion, an increase of 15.6% on such spending in 2006.[6]


Company Overview

Business Clients

Image:URSRevByClient.jpg
URS’ 2007 Revenue By Client[7] [8]

URS Corporation subdivides revenues based upon four types of clientele: US Federal Government, US State and Local Governments, Private Industry, and International clients. Between 2005 and 2007, URS generated an increasing percentage of its total revenue from US Federal Government contracts. While in 2005, US Government revenue supplied only 30% of URS’s gross revenue, by 2006, this client’s revenue contribution had ballooned to 38% of total 2006 revenue. Finally, in 2007, the US Federal Government contributed to 41% of URS’ gross revenue.[9]

  • US Federal Government Contracts (41% of revenue): URS, as a major contractor to the U.S. federal government, serves departments including the Department of Defense, Department of Homeland Security, Department of Energy, NASA, and the Treasury Department. The project specifics for these departments remain classified.[10]
  • US State and Local Government (21% of revenue): URS additionally serves state and local government agency clients include local municipalities, community planning boards, state and municipal departments; for these clients, the company primarily constructs infrastructure networks including transportation networks, waste systems, and water systems.[11]
  • US Private Industry (27 % of revenue): Many US Fortune 500 companies, US companies with international operations, and US companies specializing industries including mining, power, and oil and gas contract URS to either build infrastructure networks and facilities or decommission existing sites for them.[12]
  • International Governments and Private Companies (11% of revenue): In the international realm, URS Corp both builds infrastructure and facilities as well as decommissions sites for private industry clients and foreign governmental agencies. [13]

Business Divisions

Image:URSRevByDivision.jpg
URS’ 2007 Revenue & Operating Income By Division[14] [15]


URS Corporation additionally subdivides revenues based upon three intrinsic divisions of the organization: URS Division, EG&G Division, and the Washington Division. Between 2006 and 2007, revenue contribution by each division as a percentage of gross revenue remained the same; in 2006, URS contributed to 66.3% of gross revenue while EG&G and at that time the EG&G subsidiary, Washington Division contributed to 33.7% of gross revenue.

  • URS Division (65.3% of revenue): The URS Division competes for contracts in the transportation, power, environmental preservation, and nuclear management sectors. Competitors for the URS division include Fluor Corporation, Jacobs Engineering Group Inc., Parsons Brinckerhoff Inc., the Shaw Group Inc. and Tetra Tech, Inc.
  • EG&G Division (28.4% of revenue): The EG&G Division competes for contracts in the industrial infrastructure, facilities, water treatment, and mining sectors. Competitors for the EG&G division include L-3 Communications Corporation, ManTech International Corporation, Raytheon Corporation and Science Application International Corporation (SAIC).
  • Washington Division (6.3 % of revenue): The Washington Division competes for contracts in the Homeland Security, Defense Systems, and Installation and Logistics sectors. Competitors for the Washington Division include Kiewit Corporation, McDermott International, Inc., Parsons Brinckerhoff Inc., Parsons Corporation and the Shaw Group Inc.

Finances

  • Revenue grew at an uncompounded average rate of 23.37% per year between 2002 and 2007. [16]
  • Net income, between 2002 and 2007, grew at uncompounded average rate of 33.88%. Net income growth has grown positively since 2002 as a result of URS’s ability to keep both Cost of Good Sold and Sales, general, and administrative expenses (SG&A) in check.[17]
  • URS’ cost of goods sold (COGS) rose steeply between 2002 and 2007. Between these years, Cost of Good Sold increased at an average uncompounded rate of 49.9% year-over-year, a rate exceeding that of revenue growth.[18] However, due to scaling, URS still produced a positive gross profit throughout this period (ie Revenue still exceeded Cost of Goods Sold).[19]
Annual income data, in millions[20] 2002 2003 2004 2005 2006 2007
Total Revenue$2,428$3,181$3,368$3,890$4,223$5,383
Cost of Services$1,457$2,972$3,159$3660$3,978$5,095
Gross Profit $971 $209 $209 $230 $245$288
Net Income $49 $58 $62 $83 $113$132

Competition and Market Share

URS Corporation competes with other general contracting firms to acquire business in either the federal contracting or private energy sectors.

Company 2007 Revenue (millions USD) Net Margin (%) New Contracts 2007 Backlog (millions USD) Electric Work Market Share (2007)[21]
URS Corporation (URS) $5,383.0[22] 2.5[23] 1,022[24] 18700[25] 33.9%
Emcor Group (EME) $5,927.2[26] 2.1[27] 4,845[28] 4490[29] 37.3%
Quanta Services (PWR) $2,656[30] 5[31] 1,301[32] 4670[33] 16.7%
Integrated Electrical Services (IESC) $892.8[34] 0.1[35] 934[36] 334.3[37] 5.6%
Mastec. Corp $1,037.8[38] 0.6[39] 988[40] 1300[41] 6.5%


  • Quanta Services (PWR) implements and repairs infrastructure for the natural gas, electric, telecommunications, and cable industries. Primarily, the organization installs power lines and power distribution networks for companies that provide power, like gas and electric utilities.[42]
  • Integrated Electrical Services (IESC) is a U.S. provider of electrical contract services. IESC serves commercial, industrial, and residential markets.[43]
  • Mastec. Corp specializes in the installation and maintenance of communications and utility infrastructure in the United States.[44]
  • Emcor Group (EME) undertakes both electrical & mechanical construction ventures as well as facilities maintenance projects for corporations around the world.[45]





References

  1. EME 2007 10-K, Item 1: Business General, page 1
  2. EME 2007 10-K, Item 1: Business General, page 1
  3. EME 2007 10-K, Item 1: Business General, page 1
  4. EME 2007 10-K, Item 1: Business Operations, page 2
  5. EME 2007 10-K, Item 1: Business Operations, page 2
  6. EME 2007 10-K, Item 1: Business Operations, page 2
  7. EME 2007 10-K, Item 1: Business Operations, page 2
  8. EME Google Finance Nov. 20, 2008
  9. EME 2007 10-K, Item 1: Business Operations, page 2
  10. EME 2007 10-K, Item 1: Business General, page 1
  11. EME 2007 10-K, Item 1: Business General, page 1
  12. EME 2007 10-K, Item 1: Business General, page 1
  13. EME 2007 10-K, Item 1: Business General, page 1
  14. EME 2007 10-K, Item 1: Business Operations, page 2
  15. EME Google Finance Nov. 20, 2008
  16. EME S&P Compustat Report, Page 3, November 20th 2008
  17. EME S&P Compustat Report, Page 3, November 20th 2008
  18. EME S&P Compustat Report, Page 3, November 20th 2008
  19. EME S&P Compustat Report, Page 3, November 20th 2008
  20. EME S&P Compustat Report, Page 3, November 20th 2008
  21. EME S&P Compustat Report, Page 3, November 20th 2008
  22. URS Google Finance, November 20,2008
  23. URS Reuters, November 20, 2008
  24. URS Reuters, November 20, 2008
  25. URS 2007 10-K, Item 1: Business Backlog, page 13
  26. EME Google Finance, November 20, 2008
  27. EME Reuters, November 20, 2008
  28. EME Reuters, November 20, 2008
  29. EME 2007 10-K, Item 1: Business Backlog, page 5
  30. PWR Google Finance, Juy 4, 2008
  31. PWR Reuters, November 20 2008
  32. PWR Reuters, November 20, 2008
  33. PWR 2007 10-K, Item 1: Business Backlog, page 10
  34. IESC Google Finance, November 20 2008
  35. IESC Reuters, November 20, 2008
  36. IESC Reuters, November 20, 2008
  37. IESC 2007 10-K, Item 1: Business Backlog, page 10
  38. MTZ Google Finance, November 20,2008
  39. MTZ Reuters, November 20, 2008
  40. MTZ Reuters, November 20, 2008
  41. MTZ 2007 10-K, Item 1: Business Backlog, page 7
  42. PWR Google Finance, November 20,2008
  43. IESC Google Finance, November 20,2008
  44. MTZ Google Finance, November 20,2008
  45. EME Google Finance, November 20,2008
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