URS Corp. (URS: Quote) on Tuesday reported a 20 percent decline in profit for the second quarter from last year as higher revenues were offset by one-time charges related to the acquisition of Flint Energy Services Ltd. However, adjusted earnings per share increased from last year.
Looking ahead, the engineering and construction company raised its financial outlook for fiscal 2012 to reflect completion of the acquisition. The company also declared a quarterly dividend.
In mid-May San Francisco, California-based URS completed its C$1.25 billion acquisition of Flint Energy. The deal enables the company to expand its presence in fast growing segments of North American oil and gas industry, particularly in unconventional oil and gas extraction.
Revenues for the latest quarter included $277.5 million from seven weeks of operations of the former Flint Energy Services Ltd., which URS acquired during the quarter. Flint revenues contributed about 12 percent in total revenue growth in the second quarter.
URS' backlog at the end of the quarter was $14.3 billion, essentially unchanged compared to December 30, 2011. The company ended the quarter with a book of business of $27.3 billion, compared to $27.0 billion as of December 30, 2011.
The company's second-quarter net income was $53.6 million or $0.72 per share, down from $66.8 million or $0.86 per share in the year-ago period.
The latest quarter's results include a charge for acquisition-related expenses of $0.16 per share and a charge for foreign currency losses related to intercompany loans and foreign currency derivatives associated with the Flint acquisition of $0.12 per share.
Excluding charges, adjusted net income for the quarter increased to $74.7 million or $1.00 per share from $67.8 million or $0.87 per share in the prior-year period.
On average, seven analysts polled by Thomson Reuters expected the company to earn $0.91 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter grew 14 percent to $2.69 billion from $2.36 billion in the year-ago period and beat analysts' consensus estimate of $2.62 billion.
Looking ahead to fiscal year 2012, URS now expect earnings in a range of $4.15 to $4.25 per share on revenues of about $11.0 billion. Earlier, the company had expected earnings for the year in a range of $3.95 to $4.05 per share and revenues between $9.9 billion and $10.1 billion.
Analysts expect the company to earn $4.20 per share for the year on revenues of $11.26 billion.
Further, URS declared a quarterly cash dividend of $0.20 per common share for the third quarter. The dividend will be paid on October 5, 2012 to stockholders of record as of September 14, 2012.
URS closed Tuesday's regular session at $35.73, up $0.16 or 0.45 percent on a volume of 539,274 shares. In after-hours, the stock further gained $1.79 or 5.01 percent to $37.52.
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by RTT Staff Writer
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