1 16 13 investor presentation(2)
TRANSCRIPT
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Investor Presentation
January 2013
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2
Forward Looking Statements
Statements contained in this presentation that are not historical facts may constitute forward-looking statements, including
statements relating to future revenues, future earnings, future business projects, future backlog and book of business,
and other future business, economic and industry trends and conditions. We believe that our expectations are reasonableand are based on reasonable assumptions; however, we caution against relying on any of our forward-looking statements
as such forward-looking statements by their nature involve risks and uncertainties. A variety of factors, including but not
limited to the following, could cause our business and financial results, as well as the timing of events, to differ materially
from those expressed or implied in our forward-looking statements: declines in the economy or client spending; federal
sequestration; changes in our book of business; our compliance with government regulations; impairment of our goodwill;
integration of acquisitions; employee, agent or partner misconduct; our ability to procure government contracts; liabilities
for pending and future litigation; environmental liabilities; changes in commodity prices; availability of bonding and
insurance; our reliance on government appropriations; unilateral termination provisions in government contracts; our
ability to make accurate estimates and assumptions; our accounting policies; workforce utilization; our and our partners
ability to bid on, win, perform and renew contracts and projects; our dependence on partners, subcontractors and
suppliers; customer payment defaults; our ability to recover on claims; impact of target and fixed-priced contracts on
earnings; the inherent dangers at our project sites; the impact of changes in laws and regulations; nuclear
indemnifications and insurance; misstatements in expert reports; a decline in defense spending; industry competition; our
ability to attract and retain key individuals; retirement plan obligations; our leveraged position and the ability to service our
debt; restrictive covenants in finance arrangements; risks associated with international operations; business activities in
high security risk countries; information technology risks; natural and man-made disaster risks; our relationships with
labor unions; our ability to protect our intellectual property rights; anti-takeover risks and other factors discussed more
fully in our Form 10-Q for the period ended September 28, 2012, as well as in other reports subsequently filed from time
to time with the United States Securities and Exchange Commission. The forward-looking statements represent our
current intentions as of the date on which they were made and we assume no obligation to revise or update any forward-
looking statements.
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3
FY 2011 Contract Risk Profile
FY 2011 Revenue by Service Offering
TechnicalServices
ProjectDevelopment
ProgramManagement
IT ServicesPlanning,Design &
Engineering
Construction& Management
Operations &Maintenance
Decommissioning& Closure
Reimbursable
Cost(1)Fixed
Price(2)
Engineering
&
TechnicalServices
Operations
&Maintenance
ConstructionManagement
&
Construction
Notes: (1) Reimbursable contracts include: Reimbursable, Time & Materials and Target Price contracts(2) Fixed Price contracts include: Firm Fixed-Price and Fixed-Price Per Unit contracts. URS has minimum exposure to lumpsum turnkey projects
Diversified Business Mix with Full ServiceCapabilities
37%
16%28%
10%
9%
3Q 2012 Revenue by End Market
Infrastructure Oil & Gas
Power
IndustrialFederal
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$319
$374
$652
$528$505
$277 $283
$610
$482$437
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011
($M)
Notes: (1) Defined as net cash from operating activities less capital expenditures. See reconciliation table for GAAP equivalent
(1)Cash From Operations (CFO) Free Cash Flow
Cash Flow Generation
2007-2011 CFO CAGR: 12%
Solid Cash Flow Results Through the Cycle
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5
Well Diversified Federal Sector
Federal
DOD
DOE, NDA
Other Agencies
DOD market opportunities include:Intelligence community support ($3.3B) &Chemical, Biological, Radiological, Nuclear,and Explosives (CBRNE) ($7.9B)
Apptis acquisition provides access to $30Bhigh-end Government IT market
Stable base of activity under existing DODindefinite delivery contracts
DOE growth opportunity in National NuclearSecurity Administration (NNSA)
Expand presence in UK NDA and adjacentinternational markets
Competitive advantages:
Tier 1 Federal Contractor
#1 in Environmental Management
Growth Drivers
FY 2011 Revenue $4.6 B
3Q 2012 Backlog $7.0 B
FY 2011 Revenue Mix
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Strong Infrastructure Business
Infrastructure
Diversified long-term funding sources:Bonds, user fees, public-privatesponsorships & state general funds
Passage of MAP-21 federaltransportation bill and TIFIA federalcredit program
Infrastructure spending in China & India
Backlog stable at $3.1 Billion
Competitive advantages:
Global presence through 400+ offices(including all US States)
Client driven project delivery models
Growth Drivers
FY 2011 Revenue $1.9 B
3Q 2012 Backlog $3.1 B
Transportation
Facilities, Other
Water / Wastewater
FY 2011 Revenue Mix
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Industrial
Growth in outsourced facilitiesmanagement for multinationals
Increased focus on environmentalcompliance
Existing commodity prices supportinvestment
Opportunities in international mining(Australia)
Competitive advantages:
Fully integrated E&C services
Master Service Agreements withnearly half of Fortune 500
Growth Drivers
FY 2011 Revenue $1.2 B
3Q 2012 Backlog $888 M
Chem / Pharma
Manufacturing & Other
Facilities Mgmt
Mining
FY 2011 Revenue Mix
Attractive End Markets in the IndustrialSector
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Long-term, Flexible Supplier to the PowerSector
Power
Air quality legislation and regulation:Federal & State
Fossil: Focus on natural gas-fired plants
Nuclear: Fukushima-relatedmodifications, major componentreplacement, and life cycle services
T&D: Aging, undersized infrastructure,linking of renewable sources topopulation centers
Competitive advantages: Full EPC services, bundled or discrete
Over 200 AQCS installations
60-year nuclear services provider
Over 100 natural-gas units
Growth Drivers
FY 2011 Revenue $1.1 B
3Q 2012 Backlog $1.5 B
Air Quality ControlSystems
Nuclear Services
Fossil GenerationT&D and Other
FY 2011 Revenue Mix
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Oil & Gas
Sustained oil prices and increasinginvestments
Robust demand for lifecycle services(environmental and EPCM/PM)
Activity in Canadian oil sands
Acquisition of Flint Energy (May 2012)provides significant scale in oil & gas inNorth America
Competitive advantages:
Master Service Agreements withmajor oil & gas companies
Strategic global locations in oil & gasdevelopment areas
Exposure across full energy cycle
Growth Drivers
FY 2011 Revenue $692 M
3Q 2012 Backlog $1.3 B
FY 2011 Revenue Mix
Upstream
Midstream
Well Positioned in the Oil & Gas Sector
Downstream
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Oil & Gas Division Has Exposure Across FullEnergy Cycle
10
OILFIELDSERVICES
FACILITYCONSTRUCTION
PRODUCTIONSERVICES
MAINTENANCESERVICES
Upstream Downstream
Operations in WesternCanada & US
Significant oil sandsexposure
Midstream fieldservices
Significant oil sandsexposure
Midstream
Rig moving (largest in
North America) Fluid hauling
Pressure and vacuumservices
Oil field equipmenthauling
Largest fabricator of
oil sands equipmentmodules
Large projectconstruction
Project managementand module fabrication
Multi-year contracts
Pipeline construction
and well tie-ins Field & mechanical
construction
7 structural steel &modular fabricationfacilities in Canada
Asset management
and maintenanceservices to large oilsands producers &refineries
Pipeline and plantmaintenance
Turnaround services
Multi-year contracts
Representative Services
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Key Financial Highlights
Attractive top-line growth outlook
Strong margin performance
Cost control and efficiency is an ongoing discipline
Improved EBITDA* margin every year from FY 2007 toFY 2011 (up 210 bps)
Cash flow focus
Working capital management is an integral part of URSculture
Strong and consistent free cash flow generation
Investment-grade rating
Acquisition strategy augments organic growth
Opportunistic share repurchase
Repurchased >$400M of stock since the beginning ofFY 2010
Announced quarterly cash dividend of $0.20 per commonshare for 4Q 2012
Notes: *See reconciliation table for GAAP equivalent
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0.1 0.3 0.40.8
1.42.2 2.3 2.4
3.2 3.43.9 4.2
5.4
10.19.2 9.2 9.5
10.4
0
4
8
12
16
1990 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM
12
Revenues
($B)
1990-2011
Total Revenue CAGR: 24%
Organic Revenue* CAGR: 13%
Share Price CAGR: 12%
Industrial / Commercial
Transportation
Transit, Power, Construction
Management
Power, Nuclear,
Infrastructure
Infrastructure,
International
Federal O&M
Federal IT
Notes: *Represents total revenues minus acquisition revenues
Proven Ability to Create Value from StrategicAcquisitions
Oil & Gas
37%
16%28%
10%
9%
3Q 2012 Revenue by End Market
Federal
Infrastructure
Industrial
Power
Oil & Gas
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Strong Performance Through the Cycle
Adjusted EBITDAand Margin(1)
$315
$648
$609
$700
$755
$696
5.8%
6.4%6.6%
7.6%
7.9%
8.7%
5
6
7
8
9
10
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010 2011 1st 9 mo. 2012
Adj. EBITDA Margin (%)
($M) (%)
Notes: (1) See reconciliation table for adjusted EBITDA and margin, and reconciliation to operating income
2007-2011 Adj. EBITDA CAGR: 24%
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$3.53
$3.28$3.29
$2.59$2.30
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2007 2008 2009 2010 2011
Adjusted Earnings Per Share(1)
Notes: (1) See reconciliation table for adjusted earnings per share and GAAP equivalent
($) 2007-2011 Adj. EPS CAGR: 11%
Solid Earnings Results Through the Cycle
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13.8
5.1
7.2
0.0
10.0
20.0
30.0
3Q 2012
Indefinite Delivery Contracts Option Years Backlog
15
Book of Business Supports Outlook
Book of Business(2) ($B)
Notes: (1) Programs managed under an agency or equity joint venture basis with URS serving as the lead partner. Shown for purposes of inter-sector comparability(2) Total may differ slightly due to rounding
Multi-year revenues in backlog
> 90% of option years have converted intobacklog
> 50% of indefinite delivery contracts haveconverted into backlog
Multi-year agency / equity method JV contractsare included at the net earnings level(1)
Book of Business
Backlog by Market Sector ($B) 3Q 2012
Federal 7.0
Infrastructure 3.1
Oil & Gas 1.3
Power 1.5
Industrial 0.9
Total backlog(2)
13.8
Total: 26.0
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Investment Considerations
Diversified Business Model with Full Service Capabilities
Leadership Positions in Attractive End Markets
World-Class Technical Expertise
Established Brand with Blue Chip Customer Base
Proven Ability to Integrate Strategic Acquisitions
Strong and Consistent Free Cash Flow Generation
Earnings and Cash Flow Growth Through the Business Cycle, Reflectiveof Strategic End Market Diversity and Variable Cost Structure
5-year Revenue CAGR: 18%
5-year Adjusted EPS CAGR: 10%*
5-year Free Cash Flow CAGR: 26%*
Notes: *See reconciliation table for GAAP equivalent
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Appendix
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Revenue Breakdown
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Amounts shown in the table below are net of eliminations
Notes:
(1) Historically, we have included revenues from the oil & gas market sector as part of our presentation of revenues from theindustrial & commercial market sector. Effective at the beginning of our 2012 fiscal year, we revised our presentation to show ourrevenues from the oil & gas market sector separately. In addition, we have changed the name of our industrial and commercialmarket sector to industrial market sector. Forcomparative purposes, we reclassified the prior periods data to conform them to thecurrent periods presentation.
(2) The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.
(3) The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.
$ 500.6 $ 1,171.4 $ 399.0 $ 158.2 $ 527.5 $ 2,756.7
2,117.5 2,117.5
810.4 178.5 186.6 752.2 328.2 2,255.9
869.7 869.7
$ 3,428.5 $ 1,349.9 $ 1,455.3 $ 910.4 $ 855.7 $ 7,999.8
$ 475.1 $ 1,166.3 $ 363.0 $ 141.3 $ 585.6 $ 2,731.3
1,967.8 1,967.8
1,043.2 255.5 129.6 690.2 334.2 2,452.7
$ 3,486.1 $ 1,421.8 $ 492.6 $ 831.5 $ 919.8 $ 7,151.8
Infrastructure & Environment
Federal Services (2)
Energy & Construction
Oil & Gas (3)
Total
Infrastructure & Environment
Federal Services (2)
Energy & Construction
Oil & Gas (3)
Total
Nine months ended September 30, 2011
Total
Nine months ended September 28, 2012
(In millions) Federal Infrastructure Oil and Gas (1) Power Industrial (1)
R d O ti I (L ) b
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Revenues and Operating Income (Loss) byDivision
19
Notes:
(1) The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.
(2) The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.
$ 920.7 $ 950.8 $ 2,851.1 $ 2,790.2
682.8 718.7 2,118.1 1,968.5
781.5 844.6 2,285.1 2,521.4
592.2 869.7
(29.6) (42.4) (124.2) (128.3)
$ 2,947.6 $ 2,471.7 $ 7,999.8 $ 7,151.8
$ 67.1 $ 60.7 $ 175.7 $ 170.6
64.8 (307.1) 217.5 (225.5)
64.6 (355.3) 167.5 (222.8)
28.9 31.9
(21.8) (18.5) (78.1) (59.9)
$ 203.6 $ (620.2) $ 514.5 $ (337.6)Total operating income (loss)
Total revenues
Inter-segment eliminations
Nine Months Ended
(In millions) September September September September2012 2011 2012 2011
Three Months Ended
Revenues
Infrastructure & Environment
Federal Services (1)
Energy & Construction
Oil & Gas (2)
Corporate
Operating income (loss)
Infrastructure & Environment
Federal Services (1)
Energy & Construction
Oil & Gas (2)
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Reconciliation Table
The following EBITDA and free cash flow measures are not computed in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP measures may be useful toinvestors seeking to better understand how we generate and manage our earnings and cash flow; however, they should not be used as a substitute for their reconciled GAAP measure.
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EPS Reconciliation ($) EBITDA Reconciliation ($M) 1st 9 mo.2006 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2012
Adjusted diluted EPS before the impact of the following item: 2.15 2.30 2.59 3.29 3.28 3.53 Adjusted EBITDA 315 648 609 700 755 696
Reduction in income tax expense - - - - 0.52 - Depreciation (45) (90) (87) (84) (82) (92)
Adjusted diluted EPS before the impact of the following items: 2.15 2.30 2.59 3.29 3.80 3.53 Amortization of intangible assets (7) (53) (53) (49) (61) (74)
Goodwill impairment charge, net of tax - - - - - (9.46) Goodwill impairment charge, pre-t ax - - - - (826) -
Restructuring charge, net of tax - - - - (0.11) (0.07) Restructuring charge, pre-tax - - - (11) (6) -
Loss on extinguishment of debt, net of tax - - - - - (0.02) Loss on ex tinguishment of debt , pre-tax - - - - (3) -
Acquisition-related expenses, net of tax - - - - (0.15) (0.01) Ac quis it ion-related ex pens es , pre-tax - - - (12) (1) (16)
GAAP Diluted EPS 2.15$ 2.30$ 2.59$ 3.29$ 3.54$ (6.03)$ Operating income 263$ 505$ 469$ 544$ (223)$ 515$
2006 2007 2008 2009 2010 2011 CAGR ($M) 2007 2008 2009 2010 2011 CAGR
4-Year Adjusted EPS CAGR 2.30$ 2.59$ 3.29$ 3.28$ 3.53$ 11% 4-Ye ar Adjusted EBITDA CAGR 315$ 648$ 609$ 700$ 755$ 24%
5-Year Adjusted EPS CAGR 2.15$ 2.30$ 2.59$ 3.29$ 3.28$ 3.53$ 10%
Notes: EBTIDA defined as operating income plus depreciation and amortization of intangible assets
Notes: Adjusted EPS CAGR reconciliation to GAAP can not be performed Totals may differ slightly due to rounding
Free Cash Flow Reconciliation ($M) EBITDA Margin Reconciliation (%) 1st 9 mo.
2006 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2012
Free cash flow 136 277 283 610 482 437 Revenue ($M) 5,383 10, 086 9,249 9,177 9,545 8,000
Capital expenditures 29 42 92 42 45 68 Adjusted EBITDA ($M) 315 648 609 700 755 696
Net cash from operating activities (CFO) 165$ 319$ 374$ 652$ 528$ 505$ Adjusted EBITDA Margin 5.8% 6.4% 6.6% 7.6% 7.9% 8.7%
Notes: EBTIDA Margin def ined as EBITDA divided by revenue
($M) 2006 2007 2008 2009 2010 2011 CAGR Totals may differ slightly due to rounding
5-Year Free cash flow CAGR 136$ 277$ 283$ 610$ 482$ 437$ 26%
Notes: Free cash flow def ined as net cash fr om operating activities less capital expenditures
Totals may differ slightly due to rounding
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www.urs.com
NYSE: URS
Corporate Headquarters:
600 Montgomery Street, 26th Floor
San Francisco, CA 94111