Management believes the following unaudited quarterly financial information for fiscal years 2013 and 2012, which is derived from the Company's unaudited interim financial statements, reflects all adjustments necessary for a fair statement of results of operations.



Year Ended June 30, 2013	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Gross revenue	$	108,286	$	104,470	$	109,806	$	118,955
Net service revenue	75,216		75,254		83,044		86,889
Operating income	4,606		4,399		3,392		6,164
Income from operations before taxes and equity in earnings	4,494		4,319		3,314		6,097
Income from operations before equity in earnings (1)	4,260		4,104		3,083		24,763
Net income	4,260		4,104		3,083		24,763
Net income applicable to TRC Companies, Inc.	4,272		4,123		3,101		24,779
Net income applicable to TRC Companies, Inc.'s common shareholders	4,272		4,123		3,101		24,779
Basic earnings per common share	$	0.15	$	0.14	$	0.11	$	0.85
Diluted earnings per common share	$	0.15	$	0.14	$	0.10	$	0.83


(1)	The fourth quarter results include a tax benefit of $25,646 related to the release of the valuation allowance, net of income tax expense of $7,660 related to the fiscal year 2013 income tax provision.



Year Ended June 30, 2012	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Gross revenue	$	103,735	$	105,378	$	101,118	$	109,728
Net service revenue	73,455		73,896		75,135		79,294
Operating income (1)	15,540		4,892		3,517		6,007
Income from operations before taxes and equity in earnings	15,359		4,717		3,289		5,923
Income from operations before equity in earnings	18,657		4,923		3,860		5,778
Net income	18,657		5,193		3,860		5,778
Net income applicable to TRC Companies, Inc.	18,688		5,211		3,881		5,795
Net income applicable to TRC Companies, Inc.'s common shareholders	18,688		5,211		3,881		5,795
Basic earnings per common share	$	0.68	$	0.19	$	0.14	$	0.21
Diluted earnings per common share	$	0.66	$	0.18	$	0.13	$	0.20

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(1)

A case titled The Arena Group v. TRC Environmental Corporation and TRC Companies, Inc., was filed in September 2007 and involved a former landlord seeking damages for alleged breach of a lease for certain office space in Houston, Texas that the subsidiary had vacated. The jury in that case returned an adverse verdict against the Company and its subsidiary TRC Environmental Corporation that was significantly in excess of our previously established litigation reserve. Therefore, in the fourth quarter of fiscal year 2011, the Company increased its litigation reserve by $17,278. Subsequently, the Company filed a post-trial motion to disregard the late fee portion of the verdict, which was granted on October 5, 2011, resulting in an $11,224 partial reversal of the previously recorded expense in first quarter of fiscal year 2012. In addition $163 of expense was recorded in the second quarter of fiscal year 2012 resulting in a net benefit of $11,061 for fiscal year 2012. A judgment was entered in the case on October 10, 2011, and on January 3, 2012 the Company paid $8,735 in full satisfaction of the judgment and interest. This adjustment was recorded on the Company's statement of operations under the caption Arena Towers Litigation (Reversal) Expense.