Tetra Tech: Second Quarter Results
PASADENA, California - Tetra Tech, Inc. (TTEK) announced results for the second quarter ended March 31, 2013.
Second Quarter Results
Revenue in the quarter was $642.0 million compared to $624.3 million in the second quarter last year. Revenue, net of subcontractor costs1, was $520.9 million, up 9.2% compared to $476.9 million in the second quarter last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA2), were $54.2 million, up 10.1% compared to $49.2 million in the second quarter last year. Operating income was $37.7 million, up 6.0% compared to $35.5 million in the second quarter last year. Diluted earnings per share (EPS) were $0.38, up 8.6% compared to $0.35 in the second quarter last year. Backlog was $2.03 billion compared to $2.03 billion at the end of the second quarter last year. Cash generated from operations was $44.3 million, up 33.8% compared to $33.1 million in the second quarter last year.
Revenue for the six-month period was $1.30 billion compared to $1.31 billion in the year-ago period. Revenue, net of subcontractor costs, was $1.02 billion, up 5.1% compared to $968.9 million in the year-ago period. EBITDA were $108.3 million, up 8.0% compared to $100.3 million in the year-ago period. Operating income was $79.5 million, up 10.9% compared to $71.6 million in the year-ago period. Diluted EPS were $0.78, up 9.9% compared to $0.71 in the year-ago period. Cash generated from operations was $62.0 million compared to $71.4 million in year-ago period.
Tetra Tech’s Chairman and CEO, Dan Batrack, commented, “We generated second quarter results that were in-line with our expectations and guidance. We continue to experience strong demand for our water and environmental services from commercial clients, especially with our oil & gas customers. U.S. commercial and international clients now represent 59% of our net revenue.”
1 Tetra Tech’s revenue includes a significant amount of subcontractor costs and, therefore, the Company believes revenue, net of subcontractor costs, which is a non-GAAP financial measure, provides a valuable perspective on its business results.
2 EBITDA is a non-GAAP financial measure. The Company believes EBITDA is a useful representation of operating performance because of significant amounts of acquisition-related non-cash amortization expense.
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.
As Tetra Tech previously announced, due to anticipated weakness in Eastern Canada and mining, Tetra Tech is updating its guidance for fiscal 2013. Tetra Tech expects diluted EPS for the third quarter of fiscal 2013 to be in the range of $0.32 to $0.42. Revenue, net of subcontractor costs, for the third quarter is expected to range from $525 million to $575 million. For fiscal 2013, Tetra Tech now expects diluted EPS to be $1.60 to $1.75. Revenue, net of subcontractor costs, for fiscal 2013 is now expected to range from $2.15 billion to $2.25 billion.
About Tetra Tech (www.tetratech.com)
Tetra Tech is a leading provider of consulting, engineering, program management, construction management, and technical services. The Company supports government and commercial clients by providing innovative solutions to complex problems focused on water, environment, energy, infrastructure, and natural resources. With more than 14,000 staff worldwide, Tetra Tech’s capabilities span the entire project life cycle.
Tetra Tech, Inc.
Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations