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URS Corporation Reports Fiscal Year 2012 Results



  URS Corporation Reports Fiscal Year 2012 Results

      Revenues, Net Income and Earnings Per Share Increased for the Year

Company Expects Continued Revenue and EPS Growth in Fiscal 2013; Announces 5%
                        Increase in Quarterly Dividend

Business Wire

SAN FRANCISCO -- February 25, 2013

URS Corporation (NYSE: URS) today reported its financial results for the
fiscal year ended December 28, 2012.

Fiscal 2012 Highlights

  * Fiscal 2012 revenues were $10.97 billion, a 15.0% increase from fiscal
    2011, including $1.5 billion from the former Flint Energy Services Ltd.
    (“Flint”), which URS acquired in May 2012.
  * Fiscal 2012 oil & gas market sector revenues were $2.3 billion, or 21% of
    consolidated revenues, reflecting the acquisition of Flint, favorable
    market conditions and strong organic growth.
  * Net income was $310.6 million, or $4.17 per share on a diluted basis, for
    fiscal 2012 compared with a net loss of $465.8 million, or $(6.03) per
    share, for fiscal 2011.
  * Fiscal 2011 results included a non-cash, after-tax goodwill impairment
    charge of $732.2 million (or $9.46 per share), a non-cash, after-tax
    charge of $1.7 million (or $0.02 per share) related to the retirement of
    the Company’s prior credit facility, and a $5.5 million (or $0.07 per
    share) after-tax charge related to the restructuring of URS’ international
    operations in Europe.
  * Excluding these charges, 2011 net income was $273.6 million and earnings
    per share (“EPS”) were $3.52.
  * Compared to the above, URS’ 2012 generally accepted accounting principles
    (“GAAP”) net income of $310.6 million is an increase of 13.5% over
    adjusted 2011 net income, and 2012 GAAP EPS of $4.17, is an increase of
    18.5% over adjusted 2011 EPS.
  * Tables reconciling net income and EPS for the Company, and operating
    income for each of the Company’s operating segments, for the fourth
    quarter and full fiscal year of 2011, excluding the various charges and
    adjustments noted above and below, to GAAP results are included in the
    Reconciliation Schedule of GAAP to Non-GAAP Measures attached to this
    release and available at the investor relations section of the Company’s
    website at www.urs.com.

Commenting on the Company’s financial results, Martin M. Koffel, Chairman and
Chief Executive Officer, stated: “URS performed well in 2012, delivering
strong growth in revenues, net income and EPS. Our results demonstrate our
success in building a world-class, highly competitive engineering,
construction and technical services company with a diversified mix of
businesses. The acquisition of Flint Energy Services last year significantly
increased our position in the rapidly expanding North American oil & gas
market. In the fourth quarter, 29% of our revenues came from the oil & gas
market, providing URS with the strategic balance for continued growth. Revenue
growth in the power sector also was strong, reflecting increased activity by
utility clients on emissions control, nuclear facilities modification, and
transmission and distribution projects. Combined, our energy-related revenues
from the oil & gas and power markets account for more than 40% of URS’
revenues.

“Conditions in the infrastructure and industrial sectors continue to improve,
but we remain mindful of the uncertainty regarding the federal budget. Based
on our market positions and our well-balanced business mix, we expect to
continue our growth in 2013.”

Fiscal 2012 Results

Revenues for fiscal 2012 were $10.97 billion, compared with $9.55 billion
recorded in fiscal 2011. Operating income for fiscal 2012 was $685.9 million,
compared with an operating loss of $223.4 million reported in fiscal 2011. Net
income for fiscal 2012 was $310.6 million, compared with a net loss of $465.8
million reported in fiscal 2011. Diluted EPS for fiscal 2012 were $4.17,
compared with the diluted loss per share of $(6.03) reported in fiscal 2011.

URS’ fiscal 2011 results included a non-cash, after-tax charge for the
impairment of goodwill of $732.2 million, or $9.46 per share. URS’ fiscal 2011
results also included a non-cash, after-tax charge of $1.7 million, or $0.02
per share, related to the retirement of the Company’s prior credit facility;
and a $5.5 million, or $ 0.07 per share, after-tax charge related to the
restructuring of URS’ international operations in Europe.

URS’ net income of $310.6 million for fiscal 2012, is a 13.5% increase over
non-GAAP net income of $273.6 million in 2011, adjusted as described above.
Diluted EPS for fiscal 2012 of $4.17, is an 18.5% increase as compared with
non-GAAP diluted EPS of $3.52 for fiscal 2011, adjusted as described above.

The Company’s backlog as of December 28, 2012 was $13.3 billion, compared to
$14.3 billion on December 30, 2011, the last day of the Company’s 2011 fiscal
year. URS ended 2012 with a book of business of $24.9 billion, compared to
$27.0 billion as of December 30, 2011.

Business Segment Results

In addition to providing consolidated financial results, URS reports separate
financial information for its four segments: Infrastructure & Environment,
Federal Services, Energy & Construction, and Oil & Gas. The Infrastructure &
Environment segment includes program management, planning, design and
engineering, construction management, and operations and maintenance services
in the federal, infrastructure, and industrial and commercial markets. The
Federal Services segment primarily includes program management, planning,
systems engineering and technical assistance, construction and construction
management, operations and maintenance, information technology services, and
decommissioning and closure services to the U.S. Departments of Defense,
State, Homeland Security and Treasury, NASA and other federal agencies. The
Energy & Construction segment includes program management, planning, design,
engineering, construction and construction management, operations and
maintenance, and decommissioning and closure services to clients in the power,
infrastructure, industrial and commercial, and federal markets. The Oil & Gas
segment consists of the operations of Flint, which URS acquired on May 14,
2012, which includes construction, maintenance and other services across the
upstream, midstream and downstream oil and gas market.

Infrastructure & Environment. For fiscal 2012, the Infrastructure &
Environment segment reported revenues of $3.8 billion and operating income of
$220.9 million, compared to revenues of $3.8 billion and operating income of
$222.0 million for fiscal 2011. Excluding its restructuring charges, the
Infrastructure & Environment segment’s non-GAAP operating income would have
been $227.5 million for fiscal 2011.

Federal Services. For fiscal 2012, the Federal Services segment reported
revenues of $2.7 billion and operating income of $249.3 million, compared to
revenues of $2.7 billion and an operating loss of $151.5 million for fiscal
2011. Excluding its goodwill impairment charge, the Federal Services segment’s
non-GAAP operating income would have been $196.8 million for fiscal 2011.

Energy & Construction. For fiscal 2012, the Energy & Construction segment
reported revenues of $3.1 billion and operating income of $254.2 million,
compared to revenues of $3.3 billion and an operating loss of $214.4 million
for fiscal 2011. Excluding its goodwill impairment charge, the Energy &
Construction segment’s non-GAAP operating income would have been $263.1
million for fiscal 2011.

Oil & Gas. For fiscal 2012, the Oil & Gas segment reported revenues of $1.5
billion and operating income of $61.2 million. URS established the Oil & Gas
segment with the acquisition of Flint on May 14, 2012.

Fourth Quarter 2012 Results

Revenues for the quarter were $2.97 billion, compared with $2.39 billion
recorded during the fourth quarter of 2011. Operating income for the fourth
quarter of 2012 was $171.4 million, compared with operating income of $114.1
million reported in the corresponding period of the prior year. Net income was
$70.6 million, compared to net income of $28.4 million reported in the fourth
quarter of 2011. Diluted EPS were $0.95, compared to diluted earnings per
share of $0.37 reported in the fourth quarter of last year.

URS’ 2011 fourth quarter results included a non-cash, after-tax charge for the
impairment of goodwill of $32.9 million, or $0.43 per share, to finalize the
estimated goodwill impairment charge the Company recorded in the third
quarter. URS’ 2011 fourth quarter results also included a non-cash, after-tax
charge of $1.7 million, or $0.02 per share, related to the retirement of the
Company’s prior credit facility, and the $5.5 million, or $0.07 per share,
after-tax charge related to the restructuring of URS’ international operations
in Europe.

URS’ net income of $70.6 million for the fourth quarter of 2012 is a 3.1%
increase compared to non-GAAP net income of $68.5 million in the prior year
period, adjusted as described above. URS’ fourth quarter 2012 diluted EPS of
$0.95, is a 6.7% increase from the fourth quarter 2011 non-GAAP diluted EPS of
$0.89, adjusted as described above.

Quarterly Dividend

URS announced that its Board of Directors has approved a 5% increase in its
regular quarterly cash dividend to $0.21 per common share. The dividend will
be paid on April 5, 2013 to stockholders of record as of March 15, 2013.
Future declarations of quarterly dividends are subject to the approval of URS’
Board of Directors.

Outlook for Fiscal 2013

URS expects that fiscal 2013 consolidated revenues will be between $11.8
billion and $12.2 billion. The Company expects that EPS will be between $4.25
and $4.75, on a fully diluted basis.

Webcast Information

URS will host a dial-in conference call today, Monday, February 25, 2013 at
5:00 p.m. (ET) to discuss its fiscal 2012 results. A live webcast of this call
will be available on the investor relations portion of URS’ website at
http://investors.urs.com.

URS Corporation (NYSE: URS) is a leading provider of engineering, construction
and technical services for public agencies and private sector companies around
the world. The Company offers a full range of program management; planning,
design and engineering; systems engineering and technical assistance;
construction and construction management; operations and maintenance;
information technology; and decommissioning and closure services. URS provides
services for power, infrastructure, industrial, oil and gas, and federal
projects and programs. Headquartered in San Francisco, URS Corporation has
more than 54,000 employees in a network of offices in nearly 50 countries
(www.urs.com ).

Statements contained in this earnings release that are not historical facts
may constitute forward-looking statements, including statements relating to
future revenues, net income and earnings per share, future federal budget
cuts, future backlog and book of business, future dividend payments and other
future business, economic and industry trends and conditions. We believe that
our expectations are reasonable and 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; integration of acquisitions; employee, agent or
partner misconduct; our ability to procure government contracts; liabilities
for pending and future litigation; environmental liabilities; changes in oil,
natural gas and other commodity prices; availability of bonding and insurance;
our reliance on government appropriations; unilateral termination provisions
in government contracts; impairment of our goodwill; 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-K for the period ended December 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.

                                                            
URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
                                                              
                                         December 28, 2012   December 30, 2011
ASSETS
Current assets:
Cash and cash equivalents                $     314.5         $     436.0
Accounts receivable, including
retentions of $114.4 and $67.5,                1,554.8             1,114.7

respectively
Costs and accrued earnings in                  1,384.3             1,132.0
excess of billings on contracts
Less receivable allowances                     (69.7)              (43.1)
Net accounts receivable                        2,869.4             2,203.6
Deferred tax assets                            67.6                63.0
Inventory                                      61.5                19.5
Other current assets                           204.2               181.8
Total current assets                           3,517.2             2,903.9
Investments in and advances to                 278.3               107.7
unconsolidated joint ventures
Property and equipment at cost,                687.5               269.4
net
Intangible assets, net                         692.2               522.0
Goodwill                                       3,247.1             2,773.0
Other long-term assets                         364.2               286.6
Total assets                             $     8,786.5       $     6,862.6
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt        $     71.8          $     61.5
Accounts payable and
subcontractors payable, including
retentions
of $32.3 and $39.6, respectively               803.5               659.1
Accrued salaries and employee                  558.8               527.0
benefits
Billings in excess of costs and                289.1               310.8
accrued earnings on contracts
Other current liabilities                      277.8               176.5
Total current liabilities                      2,001.0             1,734.9
Long-term debt                                 1,992.5             737.0
Deferred tax liabilities                       328.3               276.5
Self-insurance reserves                        129.8               132.7
Pension and post-retirement                    300.9               276.0
benefit obligations
Other long-term liabilities                    271.0               221.1
Total liabilities                              5,023.5             3,378.2
Commitments and contingencies
URS stockholders’ equity:
Preferred stock, authorized 3.0                —                   —
shares; no shares outstanding
Common stock, par value $.01;
authorized 200.0 shares; 88.9 and
87.8 shares issued, respectively;
and 76.8 and 76.7 shares
outstanding, respectively                      0.9                 0.9
Treasury stock, 12.1 and 11.1                  (494.9)             (454.9)
shares at cost, respectively
Additional paid-in capital                     3,003.9             2,966.8
Accumulated other comprehensive                (113.2)             (110.8)
loss
Retained earnings                              1,224.4             975.2
Total URS stockholders’ equity                 3,621.1             3,377.2
Noncontrolling interests                       141.9               107.2
Total stockholders’ equity                     3,763.0             3,484.4
Total liabilities and                    $     8,786.5       $     6,862.6
stockholders’ equity
                                                                    

                                                       
URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
                                                         
                          Three Months Ended            Year Ended
                          December 28,   December 30,   December 28,    December 30,
                          2012           2011           2012            2011        
                                                                         
Revenues                  $ 2,972.7      $ 2,393.2      $ 10,972.5      $ 9,545.0
Cost of revenues            (2,810.5 )     (2,257.7 )     (10,294.5 )     (8,988.8 )
General and
administrative              (21.6    )     (19.6    )     (83.6     )     (79.5    )
expenses
Acquisition-related         —              —              (16.1     )     (1.0     )
expenses
Restructuring costs         —              (5.5     )     —               (5.5     )
Goodwill impairment         —              (27.7    )     —               (825.8   )
Equity in income of
unconsolidated              30.8           31.4           107.6           132.2     
joint ventures
Operating income            171.4          114.1          685.9           (223.4   )
(loss)
Interest expense            (19.7    )     (6.7     )     (70.7     )     (22.1    )
Other income                (3.6     )     —              0.5             —         
(expenses) ^ (1)
Income (loss)               148.1          107.4          615.7           (245.5   )
before income taxes
Income tax expense          (34.7    )     (46.8    )     (189.9    )     (91.8    )
Net income (loss)
including
noncontrolling              113.4          60.6           425.8           (337.3   )

interests
Noncontrolling
interests in income
of                          (42.8    )     (32.2    )     (115.2    )     (128.5   )

consolidated
subsidiaries
Net income (loss)         $ 70.6         $ 28.4         $ 310.6         $ (465.8   )
attributable to URS
                                                                           
                                                                           
Earnings (loss) per
share:
Basic                     $ 0.95         $ 0.37         $ 4.18          $ (6.03    )
Diluted                   $ 0.95         $ 0.37         $ 4.17          $ (6.03    )
Weighted-average
shares outstanding:
Basic                       74.5           76.3           74.3            77.3      
Diluted                     74.6           76.4           74.5            77.3      
                                                                           
Cash dividends            $ 0.20         $ —            $ 0.80          $ —         
declared per share
                                                                           

            _________________
                  Other income (expenses) consist of foreign currency gains
            (1)   (losses) related to intercompany loans and foreign currency
                  derivatives.

                                                  
URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
                                                      
                     Three Months Ended              Year Ended
                     December 28,   December 30,     December       December
                                                     28,            30,
                     2012           2011             2012           2011     
Cash flows from
operating
activities:
Net income (loss)
including            $  113.4       $  60.6        $ 425.8        $ (337.3  )
noncontrolling
interests
Adjustments to
reconcile net
income (loss) to
net
cash from
operating
activities:
Depreciation and        40.7           20.8          132.4          82.1
amortization
Amortization of         27.4           16.2          101.2          60.6
intangible assets
Amortization of
debt issuance           0.3            1.1           2.6            5.8
costs
Foreign currency
(gains) losses
related to foreign
currency
derivatives and         3.6            —             (0.5    )      —
intercompany loans
Restructuring           —              3.3           —              3.3
costs
Normal profit           (1.1   )       (0.8   )      (5.7    )      (2.7    )
Goodwill                —              27.7          —              825.8
impairment
Loss on
extinguishment of       —              2.9           —              2.9
debt
Provision for           5.7            (3.9   )      6.6            2.8
doubtful accounts
Gain on disposal
of property and         (3.4   )       (8.9   )      (3.4    )      (8.9    )
equipment
Deferred income         (19.1  )       41.2          (16.6   )      (23.3   )
taxes
Stock-based             11.1           11.3          43.6           45.3
compensation
Excess tax
benefits from           (0.1   )       —             (0.1    )      (0.8    )
stock-based
compensation
Equity in income
of unconsolidated       (30.8  )       (31.4  )      (107.6  )      (132.2  )
joint ventures
Dividends received
from
unconsolidated          20.8           18.9          88.7           107.3
joint

ventures
Changes in
operating assets,
liabilities and
other, net of
effects of
business
acquisitions:
Accounts
receivable and
costs and accrued
earnings in excess
of billings on          69.2           134.7         (98.8   )      7.8
contracts
Inventory               6.2            (1.1   )      7.0            (11.9   )
Other current           (20.4  )       (1.6   )      (30.4   )      (7.1    )
assets
Collections from
(advances to)           4.1            5.0           3.4            (0.2    )
unconsolidated
joint ventures
Accounts payable,
accrued salaries
and employee
benefits, and
other current           (64.0  )       (92.1  )      (13.6   )      (43.0   )
liabilities
Billings in excess
of costs and
accrued earnings        15.4           (24.0  )      (23.2   )      19.2
on

contracts
Other long-term         (1.4   )       5.5           (10.6   )      13.0
liabilities
Other long-term         (46.5  )       (44.2  )      (70.6   )      (102.6  )
assets
Total adjustments       17.7           80.6          4.4            843.2    
and changes
Net cash from
operating               131.1          141.2         430.2          505.9    
activities
                                                                     

                                                  
URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(In millions)
                                                    
                       Three Months Ended          Year Ended
                       December      December      December 28,     December
                       28,           30,                            30,
                       2012          2011          2012             2011      
Cash flows from
investing
activities:
Payments for
business
acquisitions,            —           (3.3   )        (1,345.7 )     (282.1   )
net of cash

acquired
Proceeds from
disposal of              8.1         7.6             25.3           14.1
property and
equipment
Payments in
settlement of
foreign currency         —           —               (1,260.6 )     —
forward

contract
Receipts in
settlement of
foreign currency         —           —               1,260.3        —
forward

contract
Investments in
unconsolidated
joint                    1.0         (7.0   )        (4.4     )     (19.6    )

ventures
Changes in               0.1         0.3             3.9            7.0
restricted cash
Capital
expenditures,
less equipment
purchased
through capital
leases and               (23.6 )     (5.8   )        (125.4   )     (67.5    )
equipment notes
Net cash from
investing                (14.4 )     (8.2   )        (1,446.6 )     (348.1   )
activities
Cash flows from
financing
activities:
Borrowings from          —              700.0        998.9            700.0
long-term debt
Payments on              (33.6   )      (626.5 )     (38.0      )     (632.6 )
long-term debt
Borrowings from
revolving line           101.6          38.6         661.6            138.6
of credit
Payments on
revolving line           (150.0  )      (65.7  )     (583.6     )     (115.7 )
of credit
Net payments
under foreign
lines of credit
and
short-term notes         (7.8    )      (27.7  )     (20.5      )     (16.4  )
Net change in            50.4           0.2          54.5             (18.0  )
overdrafts
Payments on
capital lease            (4.5    )      (5.1   )     (14.6      )     (10.9  )
obligations
Payments of debt         —              (3.9   )     (8.8       )     (3.9   )
issuance costs
Excess tax
benefits from            0.1            —            0.1              0.8
stock-based
compensation
Proceeds from
employee stock
purchases and
exercises of             1.2            5.1          8.9              11.7
stock options
Distributions to
noncontrolling           (31.9   )      (34.2  )     (83.8      )     (111.7 )
interests
Contributions
and advances
from                     —              0.3          2.3              6.6
noncontrolling

interests
Dividends paid           (14.9   )      —            (44.7      )     —
Repurchases of           —              (106.1 )     (40.0      )     (242.8 )
common stock
Net cash from
financing                (89.4   )      (125.0 )     892.3            (294.3 )
activities
Net change in
cash and cash            27.3           8.0          (124.1     )     (136.5 )
equivalents
Effect of
foreign exchange
rate changes on
cash
and cash                 (2.0    )      0.9          2.6              (1.3   )
equivalents
Cash and cash
equivalents at
beginning of             289.2          427.1        436.0            573.8   

period
Cash and cash
equivalents at         $ 314.5       $  436.0      $ 314.5          $ 436.0   
end of period
                                                                       

                                                        
URS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(In millions)
                                                          
                               Three Months Ended        Year Ended
                               December 28,   December   December    December
                                              30,        28,         30,
                               2012           2011       2012        2011
Supplemental
information:
Interest paid                  $    37.7      $  4.8     $  64.5     $  15.2
Taxes paid                     $    57.1      $  40.3    $  150.6    $  177.3
                                                                         
Supplemental schedule of
non-cash investing and
financing activities:
Equipment acquired with
capital lease
obligations
and equipment note             $    11.7      $  6.1     $  27.9     $  14.2
obligations
Cash dividends declared        $    16.7      $  —       $  16.7     $  —
but not paid
Purchase price
adjustment and
contingent
consideration payable          $    —         $  7.9     $  —        $  7.9
under acquisitions
                                                                         

                       URS CORPORATION AND SUBSIDIARIES
            RECONCILIATION SCHEDULE OF GAAP TO NON-GAAP MEASURERS

Net income, diluted EPS and segment operating income (loss), excluding the
impact of various items listed in the tables below are not computed in
accordance with generally accepted accounting principles (“GAAP”). We present
these amounts to demonstrate their impact on our operating results. These
non-GAAP measures may be useful to investors seeking to compare the actual or
expected performance of our ongoing business with the actual performance of
our business in prior periods. Net income, diluted EPS and segment operating
income (loss), excluding the impact of these items should not be used as a
substitute for net income (loss), diluted EPS and operating income (loss),
prepared in conformity with GAAP, or as a GAAP measure of profitability or
cash flows.

Below are the reconciliations of net income and diluted EPS computed by
excluding the non-GAAP items, listed in the tables below, to GAAP net income
(loss) and diluted EPS for the three months and the year ended December 30,
2011.

                                                     
                                                      Three Months Ended
                                                      December 30, 2011
        (In millions, except per share data)          Amount       Diluted EPS
                                                                       
        Net income and diluted EPS
        Net income and diluted EPS before the
        impact of the
        following items:                              $ 68.5       $  0.89
        Goodwill impairment charge, net of tax          (32.9  )      (0.43  )
        Restructuring charges, net of tax               (5.5   )      (0.07  )
        Loss on extinguishment of debt, net of          (1.7   )      (0.02  )
        tax
        GAAP Net income and diluted EPS               $ 28.4       $  0.37    
                                                                       
                                                      Year Ended
                                                      December 30, 2011
        (In millions, except per share data)          Amount       Diluted EPS
                                                                       
        Net income (loss) and diluted EPS
        Net income and diluted EPS before the
        impact of the
        following items:                              $ 273.6      $  3.52
        Goodwill impairment charge, net of tax          (732.2 )      (9.46  )
        Restructuring charges, net of tax               (5.5   )      (0.07  )
        Loss on extinguishment of debt, net of          (1.7   )      (0.02  )
        tax
        GAAP Net income (loss) and diluted EPS        $ (465.8 )   $  (6.03  )
                                                                       

                       URS CORPORATION AND SUBSIDIARIES
       RECONCILIATION SCHEDULE OF GAAP TO NON-GAAP MEASURES (Continued)

Below is the reconciliation of segment operating income (loss), before the
impact of items listed in the table below, to GAAP segment operating income
(loss) for the fiscal year ended December 30, 2011.

                   
                    Year Ended December 30, 2011
                    Infrastructure   Federal      Energy &
(In millions)       &                Services     Construction   Corporate   Consolidated
                    Environment
                                                                                 
Operating
income (loss)
before the
impact of the
following           $   227.5        $ 196.8      $  263.1       $ (79.5 )   $  607.9
items:
Goodwill
impairment              —              (348.3 )      (477.5  )     —            (825.8  )
adjustment
Restructuring           (5.5    )      —             —             —            (5.5    )
charges
GAAP
Operating           $   222.0        $ (151.5 )   $  (214.4  )   $ (79.5 )   $  (223.4  )
income (loss)
                                                                                 

                       URS CORPORATION AND SUBSIDIARIES
                               BOOK OF BUSINESS

                                                                        
(In              Infrastructure   Federal     Energy &       Oil & Gas
millions)        &                Services    Construction   ^ (1)       Total
                 Environment
As of
December
28, 2012
Backlog          $    3,028.4     $ 3,476.9   $  5,947.1     $ 823.8     $ 13,276.2
Option                197.3         2,728.1      2,056.8       —           4,982.2
years
Indefinite
delivery              2,572.4       3,238.7      236.0         611.7       6,658.8
contracts
Total book
of               $    5,798.1     $ 9,443.7   $  8,239.9     $ 1,435.5   $ 24,917.2
business
                                                                            
As of
December
30, 2011
Backlog          $    2,993.1     $ 4,141.8   $  7,124.7     $ —         $ 14,259.6
Option                316.6         2,370.1      2,026.2       —           4,712.9
years
Indefinite
delivery              2,806.5       3,304.0      1,948.0       —           8,058.5
contracts
Total book
of               $    6,116.2     $ 9,815.9   $  11,098.9    $ —         $ 27,031.0
business
                                                                            

                                                          
                                            December 28,   December 30,
            (In millions)                   2012           2011
            Backlog by market sector:
            Federal                         $  6,546.5     $  8,542.4
            Infrastructure                     2,957.6        3,011.0
            Oil & Gas ^ (1,2)                  1,461.3        383.4
            Power                              1,416.1        1,623.8
            Industrial ^ (2)                   894.7          699.0
            Total backlog                   $  13,276.2    $  14,259.6
                                                               

            _________________
                  We completed the acquisition of Flint in May 2012. The
            (1)   operations of Flint have become the Oil & Gas Division of
                  URS Corporation.
                   
                  Effective at the beginning of our 2012 fiscal year, we
                  revised our presentation to show our revenues from the oil &
                  gas market sector separately. In addition, we have changed
            (2)   the name of our “industrial and commercial” market sector to
                  “industrial” market sector. For comparative purposes, we
                  reclassified the prior period’s data to conform them to the
                  current period’s presentation.

                                                   
URS CORPORATION AND SUBSIDIARIES
REVENUES AND OPERATING INCOME (LOSS) BY DIVISION
                                                     
                      Three Months Ended            Year Ended
                      December 28,   December 30,   December 28,   December
(In millions)                                                      30,
                      2012           2011           2012           2011       
Revenues
Infrastructure        $  941.0       $  970.8       $ 3,792.1      $ 3,760.9
& Environment
Federal                  603.5          726.8         2,721.6        2,695.4
Services ^ (1)
Energy &                 853.0          729.7         3,138.1        3,251.1
Construction
Oil & Gas ^ (2)          605.4          —             1,475.1        —
Inter-segment            (30.2   )      (34.1   )     (154.4   )     (162.4  )
eliminations
Total revenues        $  2,972.7     $  2,393.2     $ 10,972.5     $ 9,545.0  
Operating
income (loss)
Infrastructure        $  45.3        $  51.4        $ 220.9        $ 222.0
& Environment
Federal                  31.8           73.9          249.3          (151.5  )
Services ^ (1)
Energy &                 86.5           8.4           254.2          (214.4  )
Construction
Oil & Gas ^ (2)          29.4           —             61.2           —
Corporate                (21.6   )      (19.6   )     (99.7    )     (79.5   )
Total operating       $  171.4       $  114.1       $ 685.9        $ (223.4  )
income (loss)
                                                                      

            _________________
                  The operating results of Apptis Holdings, Inc. (“Apptis”)
            (1)   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.

                                                                                      
URS CORPORATION AND SUBSIDIARIES
REVENUE BREAKDOWN BY DIVISION AND MARKET SECTOR
                
Amounts shown in the table below are net of eliminations.
                                                                                        
(In millions)        Federal     Infrastructure   Oil and     Power       Industrial   Total
                                                  Gas ^ (1)               ^ (1)
Three months
ended December
28, 2012
Infrastructure       $ 169.5     $    378.7       $ 153.5     $ 51.6      $  173.0     $ 926.3
& Environment
Federal                603.3          —             —           —            —           603.3
Services ^ (2)
Energy &               233.7          62.8          102.3       342.4        102.4       843.6
Construction
Oil & Gas ^            —              —             599.5       —            —           599.5
(3)
Total                $ 1,006.5   $    441.5       $ 855.3     $ 394.0     $  275.4     $ 2,972.7
                                                                                          
Year ended
December 28,
2012
Infrastructure       $ 670.1     $    1,550.1     $ 552.5     $ 209.8     $  700.5     $ 3,683.0
& Environment
Federal                2,720.8        —             —           —            —           2,720.8
Services ^ (2)
Energy &               1,044.1        241.3         288.9       1,094.6      430.6       3,099.5
Construction
Oil & Gas ^            —              —             1,469.2     —            —           1,469.2
(3)
Total                $ 4,435.0   $    1,791.4     $ 2,310.6   $ 1,304.4   $  1,131.1   $ 10,972.5
                                                                                          
Three months
ended December
30, 2011
Infrastructure       $ 161.4     $    377.7       $ 166.7     $ 59.8      $  178.2     $ 943.8
& Environment
Federal                726.5          —             —           —            —           726.5
Services ^ (2)
Energy &               265.7          61.8          32.8        235.3        127.3       722.9
Construction
Oil & Gas ^            —              —             —           —            —           —
(3)
Total                $ 1,153.6   $    439.5       $ 199.5     $ 295.1     $  305.5     $ 2,393.2
                                                                                          
Year ended
December 30,
2011
Infrastructure       $ 636.5     $    1,544.0     $ 529.7     $ 201.1     $  763.8     $ 3,675.1
& Environment
Federal                2,694.3        —             —           —            —           2,694.3
Services ^ (2)
Energy &               1,308.9        317.3         162.4       925.5        461.5       3,175.6
Construction
Oil & Gas ^            —              —             —           —            —           —
(3)
Total                $ 4,639.7   $    1,861.3     $ 692.1     $ 1,126.6   $  1,225.3   $ 9,545.0
                                                                                          

            _________________
                  Historically, we have included revenues from the oil & gas
                  market sector as part of our presentation of revenues from
                  the industrial & commercial market sector. Effective at the
                  beginning of our 2012 fiscal year, we revised our
            (1)   presentation to show our revenues from the oil & gas market
                  sector separately. In addition, we have changed the name of
                  our “industrial and commercial” market sector to
                  “industrial” market sector. For comparative purposes, we
                  reclassified the prior period’s data to conform them to the
                  current period’s 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.

Contact:

URS Corporation
Sam Ramraj, 415-774-2700
Vice President,
Investor Relations
or
Sard Verbinnen & Co
Hugh Burns/Jamie Tully/Delia Cannan
212-687-8080
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