Tetra Tech: Q3 Results
Revenue in the quarter was $673.8 million, up 19.8% compared to $562.4 million in the year-ago period. Revenue, net of subcontractor costs1, was $480.5 million, up 29.8% compared to $370.1 million in the year-ago period. Earnings before interest, taxes, depreciation, and amortization (EBITDA2) were $52.5 million, up 28.9% compared to $40.8 million in the year-ago period. Operating income was $39.4 million, up 20.5% compared to $32.7 million in the year-ago period. Net income was $23.8 million, up 15.5% compared to $20.6 million in the year-ago period. Diluted earnings per share (EPS) were $0.38, up 15.2% compared to $0.33 in the year-ago period. Backlog was $1.88 billion, up 11.8% compared to $1.68 billion at the end of the year-ago period. Cash generated from operations was $55.8 million, up 127.7% compared to $24.5 million in the year-ago period.
Revenue for the nine-month period was $1.90 billion, up 20.6% compared to $1.57 billion in the year-ago period. Revenue, net of subcontractor costs, was $1.32 billion, up 26.6% compared to $1.04 billion in the year-ago period. EBITDA were $142.2 million, up 27.9% compared to $111.2 million in the year-ago period. Operating income was $103.0 million, up 17.9% compared to $87.3 million in the year-ago period. Net income was $63.6 million, up 18.6% compared to $53.7 million in the year-ago period. Diluted EPS were $1.01, up 17.4% compared to $0.86 in the year-ago period. Cash generated from operations was $98.4 million, up 52.4% compared to $64.6 million in year-ago period.
Tetra Tech’s Chairman and CEO, Dan Batrack, said, “Tetra Tech had another solid quarter driven by strength in the commercial and international markets. Demand for our water, mining, and energy services resulted in strong net revenue and earnings, which enabled us to exceed guidance. Our front-end segment margins improved notably due to seasonally higher workloads and staff productivity. Looking forward over the next several quarters, we foresee stability in our government markets and strong growth in our commercial and international markets, bolstered by contributions from recent acquisitions. International clients represent our fastest-growing sector. We expect international work to become the largest revenue contributor within the next several quarters and grow to represent more than 40% of our business.”
The following statements are based on current expectations. These statements are forward-looking and the actual results could differ materially. These statements do not include the potential impact of transactions that may be completed or developments that become evident after the date of this release. The Business Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.
Tetra Tech expects diluted EPS for the fourth quarter of fiscal 2011 to be in the range of $0.38 to $0.41. Revenue, net of subcontractor costs, for the fourth quarter is expected to range from $460 million to $480 million. For fiscal 2011, Tetra Tech is increasing its diluted EPS guidance to a range of $1.39 to $1.42. Revenue, net of subcontractor costs, for fiscal 2011 is now expected to range from $1.78 billion to $1.80 billion.
About Tetra Tech (www.tetratech.com)
Tetra Tech is a leading provider of consulting, engineering, program management, construction, and technical services addressing the resource management and infrastructure markets. The Company supports government and commercial clients by providing innovative solutions focused on water, the environment, and energy. With more than 12,000 employees worldwide, Tetra Tech’s capabilities span the entire project life cycle.
Tetra Tech, Inc.
Jorge Casado, Investor Relations