-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PGkxGPgn0XHsElFbw6yCja9gFYZoyQ7CmeiDUOTvVyGUTuleoXo8BWzF3gI3uIVZ 4MqPw3eTzGIAPbqDPbz3wA== 0001104659-03-027099.txt : 20031120 0001104659-03-027099.hdr.sgml : 20031120 20031120060342 ACCESSION NUMBER: 0001104659-03-027099 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031119 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TETRA TECH INC CENTRAL INDEX KEY: 0000831641 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ENGINEERING SERVICES [8711] IRS NUMBER: 954148514 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19655 FILM NUMBER: 031014210 BUSINESS ADDRESS: STREET 1: 3475 EAST FOOTHILL BOULEVARD CITY: PASADENA STATE: CA ZIP: 91107 BUSINESS PHONE: 626-351-4664 MAIL ADDRESS: STREET 1: 3475 EAST FOOTHILL BOULEVARD CITY: PASADENA STATE: CA ZIP: 91107 8-K 1 a03-5764_18k.htm 8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 


 

FORM 8-K

 

Current  Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934

 

Date of Report (Date of earliest event reported):

November 19, 2003

 


 

TETRA TECH, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

0-19655

 

95-4148514

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(I.R.S. Employer
Identification Number)

 

 

 

 

 

3475 East Foothill Boulevard, Pasadena, California  91107

(Address of principal executive offices)

 

 

 

 

 

(626) 351-4664

(Registrant’s telephone number, including area code)

 


 

 



 

Item 7.                                                      Financial Statements and Exhibits

 

(c)                                  Exhibits

 

99.1                           Press Release, dated November 19, 2003, reporting the results of operations for the Registrant’s fourth fiscal quarter ended September 28, 2003.

 

Item 12.                                               Results of Operations and Financial Condition.

 

On November 19, 2003 Tetra Tech, Inc. (the “Registrant”) reported its results of operations for its fourth fiscal quarter ended September 28, 2003.  A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing.  The information in this Current Report, including the exhibit hereto, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date:  November 19, 2003

 

 

 

TETRA TECH, INC.

 

 

 

 

 

By:

/s/ DAVID W. KING

 

 

 

David W. King

 

 

Executive Vice President and

 

 

Chief Financial Officer

 

3


EX-99.1 3 a03-5764_1ex99d1.htm EX-99.1

Exhibit 99.1

 

November 19, 2003

 

Tetra Tech Reports Fourth Quarter and Fiscal Year 2003 Results

 

Fourth Quarter Diluted Earnings Per Share 28 Cents, up 115%

 

Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the fourth quarter and fiscal year ended September 28, 2003.  Gross revenue for the fourth quarter was $340.0 million, up 36.6% over gross revenue of $248.9 million for the same quarter last year.  Net revenue for the quarter was $255.1 million, increasing 32.7% from $192.3 million for the same quarter last year.  Operating income for the fourth quarter was $29.1 million, or 89.0% more than the $15.4 million for the same period last year.  Net income increased 119.6% to $15.7 million compared to $7.2 million for the same period last year.  Diluted earnings per share were 28 cents compared to 13 cents for the same period last year, a 115% increase.

 

Gross revenue for fiscal 2003 was $1.132 billion, up 17.2% from $966.2 million for fiscal 2002.  Net revenue for fiscal year 2003 was $860.8 million, an increase of 16.2% over net revenue of $740.7 million for fiscal 2002.  Operating income for fiscal 2003 was $93.2 million, or 54.2% more than the $60.4 million for fiscal 2002.  Income before the cumulative effect of accounting change was $50.1 million, up 57.0% from $31.9 million for the same period last year.  Net loss for fiscal 2003, as a result of the cumulative effect of accounting change of $114.7 million that is further described below, was $64.6 million, compared to net income of $31.9 million in fiscal 2002.  Diluted earnings per share before the cumulative effect of accounting change for fiscal 2003 were 90 cents, an increase of 55% compared to the 58 cents last year.

 

 

 

Fourth Quarter Ended

 

Fiscal Year Ended

 

 

 

Sept. 28, 2003

 

Sept. 29, 2002

 

Sept. 28, 2003

 

Sept. 29, 2002

 

Gross Revenue

 

$

339,950

 

$

248,896

 

$

1,132,050

 

$

966,223

 

Net Revenue

 

255,128

 

192,317

 

860,772

 

740,715

 

Income from Operations

 

29,141

 

15,416

 

93,152

 

60,421

 

Income Before Cumulative Effect of Accounting Change

 

15,734

 

7,165

 

50,109

 

31,910

 

Net Income/(Loss)

 

15,734

 

7,165

 

(64,560

)

31,910

 

EPS Before Cumulative Effect of Accounting Change:

 

 

 

 

 

 

 

 

 

Basic

 

0.29

 

0.13

 

0.94

 

0.60

 

Diluted

 

0.28

 

0.13

 

0.90

 

0.58

 

Basic Shares Outstanding

 

53,914

 

53,271

 

53,531

 

52,760

 

Diluted Shares Outstanding

 

56,616

 

54,964

 

55,782

 

55,086

 

 



 

Cumulative Effect of Accounting Change

 

On September 30, 2002, Tetra Tech adopted Financial Accounting Standards Board Statement No. 142, Goodwill and Other Intangible Assets (“SFAS 142”).  As a result of performing the required steps of SFAS 142, Tetra Tech wrote off 100% of the goodwill related to the historical Communications segment during the second quarter of fiscal 2003.  This write-off is presented as a cumulative effect of accounting change outside of income from operations.

 

Business Outlook

 

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 corporate transactions that may be completed 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 earnings per share for the first quarter of fiscal 2004 to be approximately 22 cents to 24 cents.  Net revenue for the first quarter is expected to range from approximately $220 million to $235 million.  For the fiscal year, Tetra Tech expects diluted earnings per share to range from approximately $1.09 to $1.14, and net revenue to range from approximately $950 million to $1.06 billion.

 

Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the fourth quarter results through a link posted on the Company’s web site at www.tetratech.com on November 20, 2003 at 8:00 a.m. (PT)

 

About Tetra Tech (www.tetratech.com)

 

Tetra Tech is a leading provider of consulting, engineering and technical services.  With more than 8,000 associates located in the United States and internationally, the Company supports commercial and government clients in the areas of resource management and infrastructure.  Tetra Tech’s services include research and development, applied science and technology, engineering design, construction management, and operations and maintenance.

 

CONTACT: Li-San Hwang, CEO or Mike Bieber, Investor Relations (626) 351-4664

 

This news release contains forward-looking-statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include information concerning future events and the future financial performance of Tetra Tech that involve risks and uncertainties.  Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results.  Readers are urged to read the documents filed by Tetra Tech with the SEC, specifically the most recent reports on Form 10-K, 10-Q and 8-K, each as it may be amended from time to time, which identify risk factors that could cause actual results to differ materially from the forward-looking statements.  Among the important factors or risks that could cause actual results or events to differ materially from those in the forward-looking statements in this release are:  acquisition strategy risks; fluctuations in quarterly operating results and stock price; the impact of downturns in the financial markets on clients; management of growth strategy; credit

 

2



 

risks associated with commercial clients; the consolidation of client base; loss of key personnel or the inability to attract and retain qualified personnel; changes in existing laws and regulations; concentration of revenues from agencies of the Federal government and reductions in spending by these agencies; audit of contracts with governmental agencies; losses under fixed-price contracts or termination of contracts at the client’s discretion; backlog cancellation or adjustment; inability to find qualified subcontractors; competition; risks of professional and other liabilities; conflict of interest issues; and foreign currency fluctuations.  The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Tetra Tech’s most recent reports on Form 10-Q and Form 10-K, each as it may be amended from time to time.  Tetra Tech’s results of operations for the fiscal quarter and year ended September 28, 2003 are not necessarily indicative of Tetra Tech’s operating results for any future periods.  Any projections in this release are based on limited information currently available to Tetra Tech, which is subject to change.  Although any such projections and the factors influencing them will likely change, Tetra Tech will not necessarily update the information, since Tetra Tech will only provide guidance at certain points during the year.  Such information speaks only as of the date of this release.

 

3



 

TETRA TECH, INC.

STATEMENT OF OPERATING INFORMATION

(in thousands, except per share data)

 

 

 

QUARTER ENDED

 

TWELVE MONTHS ENDED

 

 

 

SEPT 28,2003

 

SEPT 29,2002

 

%
CHANGE

 

SEPT 28,2003

 

SEPT 29,2002

 

%
CHANGE

 

 

 

(UNAUDITED)

 

(UNAUDITED)

 

 

 

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Revenue

 

$

339,950

 

$

248,896

 

36.6

 

$

1,132,050

 

$

966,223

 

17.2

 

Subcontractor Costs

 

84,822

 

56,579

 

49.9

 

271,278

 

225,508

 

20.3

 

Net Revenue

 

255,128

 

192,317

 

32.7

 

860,772

 

740,715

 

16.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Net Revenue

 

203,788

 

150,718

 

35.2

 

680,158

 

582,153

 

16.8

 

Gross Profit

 

51,340

 

41,599

 

23.4

 

180,614

 

158,562

 

13.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

21,636

 

23,354

 

-7.4

 

86,176

 

87,330

 

-1.3

 

Amortization of Intangibles

 

563

 

2,829

 

-80.1

 

1,286

 

10,811

 

-88.1

 

Income from Operations

 

29,141

 

15,416

 

89.0

 

93,152

 

60,421

 

54.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

3,138

 

2,236

 

40.3

 

10,162

 

9,340

 

8.8

 

Interest Income

 

583

 

2,701

 

-78.4

 

888

 

3,888

 

-77.2

 

Income Before Income Tax Expense

 

26,586

 

15,881

 

67.4

 

83,878

 

54,969

 

52.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense

 

10,852

 

8,716

 

24.5

 

33,769

 

23,059

 

46.4

 

Income Before Cum Effect of Acctg Change

 

15,734

 

7,165

 

119.6

 

50,109

 

31,910

 

57.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Effect of Accounting Change

 

0

 

0

 

0.0

 

114,669

 

0

 

0.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

15,734

 

$

7,165

 

119.6

 

$

(64,560

)

$

31,910

 

-302.3

 

Earnings Per Share - Diluted *

 

$

0.28

 

$

0.13

 

115.4

 

$

0.90

*

$

0.58

 

55.2

 

Avg Shares Outstanding - Diluted

 

$

56,616

 

$

54,964

 

3.0

 

$

55,782

 

$

55,086

 

1.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of Net Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenue

 

100.0

%

100.0

%

 

 

100.0

%

100.0

%

 

 

Cost of Net Revenue

 

79.9

 

78.4

 

 

 

79.0

 

78.6

 

 

 

Gross Profit

 

20.1

 

21.6

 

 

 

21.0

 

21.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SG&A

 

8.5

 

12.1

 

 

 

10.0

 

11.8

 

 

 

Amortization of Intangibles

 

0.2

 

1.5

 

 

 

0.1

 

1.5

 

 

 

Income from Operations

 

11.4

 

8.0

 

 

 

10.9

 

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense

 

1.0

 

(0.2

)

 

 

1.1

 

0.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Tax Expense

 

10.4

 

8.2

 

 

 

9.8

 

7.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense

 

4.3

 

4.5

 

 

 

3.9

 

3.1

 

 

 

Net Income *

 

6.1

%

3.7

%

 

 

5.9

%

4.3

%

 

 

 


* Before the cumulative effect of accounting change related to goodwill

 

4



 

TETRA TECH, INC.

BALANCE SHEET INFORMATION

(in thousands, except share data)

 

 

 

SEPTEMBER 28,
2003

 

SEPTEMBER 29,
2002

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and Cash Equivalents

 

$

33,164

 

$

46,345

 

Accounts Receivable - Net

 

167,717

 

137,354

 

Unbilled Receivables - Net

 

164,818

 

117,354

 

Contract Retentions

 

4,286

 

5,090

 

Prepaid Expenses and Other Current Assets

 

26,037

 

18,588

 

Income Taxes Receivable

 

20,825

 

20,683

 

Total Current Assets

 

416,847

 

345,414

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

Leasehold Improvements

 

10,123

 

8,217

 

Equipment, Furniture and Fixtures

 

84,133

 

76,756

 

Total

 

94,256

 

84,973

 

Accumulated Depreciation and Amortization

 

(53,469

)

(44,847

)

PROPERTY AND EQUIPMENT - NET

 

40,787

 

40,126

 

 

 

 

 

 

 

GOODWILL - NET

 

210,792

 

278,267

 

 

 

 

 

 

 

INTANGIBLE AND OTHER ASSETS - NET

 

25,054

 

8,173

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

693,480

 

$

671,980

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Accounts Payable

 

$

93,265

 

$

60,038

 

Accrued Compensation

 

46,743

 

34,228

 

Billings in Excess of Costs on Uncompleted Contracts

 

16,307

 

11,837

 

Other Current Liabilities

 

26,562

 

19,377

 

Deferred Income Taxes

 

28,992

 

18,638

 

Current Portion of Long-Term Obligations

 

11,597

 

1,559

 

Total Current Liabilities

 

223,466

 

145,677

 

 

 

 

 

 

 

LONG - TERM OBLIGATIONS

 

107,463

 

110,000

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS EQUITY:

 

 

 

 

 

Preferred Stock - Authorized, 2,000,000 Shares of $.01 Par Value; None Issued and Outstanding

 

 

 

Exchangeable Stock of a Subsidiary

 

13,239

 

13,239

 

Common stock - authorized, 85,000,000 shares of $.01 par value; issued and outstanding 54,089,704 and 53,273,227 shares at September 28, 2003 and September 29, 2002, respectively

 

541

 

533

 

Additional Paid-In Capital

 

216,908

 

207,505

 

Accumulated Other Comprehensive Loss

 

(387

)

(1,784

)

Retained Earnings

 

132,250

 

196,810

 

Total Stockholders’ Equity

 

362,551

 

416,303

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

693,480

 

$

671,980

 

 

5



 

TETRA TECH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in thousands)

 

 

 

Twelve Months Ended

 

 

 

September 28,
2003

 

September 29,
2002

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net (loss) income

 

$

(64,560

)

$

31,910

 

 

 

 

 

 

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

Cumulative effect of accounting change

 

114,669

 

 

Depreciation and amortization

 

16,727

 

23,354

 

Deferred income taxes

 

9,435

 

19,997

 

Provision for losses on receivables

 

8,061

 

3,479

 

Loss on disposal of property and equipment

 

98

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

 

 

Accounts receivable

 

3,695

 

22,020

 

Unbilled receivables

 

(30,710

)

5,770

 

Contract retentions

 

2,827

 

146

 

Prepaid expenses and other assets

 

(4,633

)

(3,721

)

Accounts payable

 

2,013

 

4,919

 

Accrued compensation

 

6,438

 

(795

)

Billings in excess of costs on uncompleted contracts

 

(472

)

1,483

 

Other current liabilities

 

2,980

 

2,935

 

Income taxes receivable/payable

 

319

 

(16,286

)

Net Cash Provided By Operating Activities

 

66,887

 

95,211

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

Capital expenditures

 

(8,419

)

(7,165

)

Payments for business acquisitions, net of cash acquired

 

(87,233

)

(45,079

)

Proceeds on sale of property and equipment

 

1,456

 

 

Net Cash Used In Investing Activities

 

(94,196

)

(52,244

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

Payments on long-term obligations

 

(91,056

)

(74,927

)

Proceeds from borrowings under long-term obligations

 

97,000

 

56,000

 

Net proceeds from issuance of common stock

 

7,892

 

6,067

 

Net Cash Provided By (Used In) Financing Activities

 

13,836

 

(12,860

)

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

292

 

(2

)

 

 

 

 

 

 

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

(13,181

)

30,105

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

46,345

 

16,240

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

33,164

 

$

46,345

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest

 

$

10,009

 

$

9,370

 

Income taxes, net of refunds received

 

$

23,165

 

$

17,667

 

 

6


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