EX-99.1 2 a17-18842_1ex99d1.htm EX-99.1

Exhibit 99.1

 

August 2, 2017

 

Tetra Tech Reports Third Quarter 2017 Results

 

 

·                  Record Q3 EPS of $0.52, up 18% Y/Y

·                  Record Q3 operating income of $46 million, up 17% Y/Y

·                  Record backlog of $2.53 billion, up 12% Y/Y

 

Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the third quarter ended July 2, 2017.

 

Third Quarter Results

 

Revenue in the third quarter totaled $685 million, up 3% year-over-year.  For ongoing(1) operations, revenue, net of subcontractor costs (net revenue) (2), was $498 million, consistent with the same period in fiscal 2016.  Operating income for the third quarter was $46 million, up 17% year-over-year.  On an ongoing basis, operating income totaled $47 million, up 7% year-over-year.  Earnings per share (EPS) were $0.52, up 18% year-over-year, and on an ongoing basis totaled $0.53, up 6% over the prior-year quarter.  Backlog of $2.53 billion was up 12% year-over-year.

 

Quarterly Dividend and Share Repurchase Program

 

On July 31, 2017, Tetra Tech’s Board of Directors declared a quarterly dividend of $0.10 per share payable on September 1, 2017 to stockholders of record as of August 17, 2017.  Additionally, the Company has $140 million remaining under the previously approved $200 million share repurchase program.  The Company anticipates expending $100 million in share repurchases in fiscal year 2017, of which $60 million was completed in the first nine months.

 

Comments on Results

 

Tetra Tech’s Chairman and CEO, Dan Batrack commented, “Tetra Tech generated record-high third quarter earnings, operating income, and backlog.  Our U.S. federal and U.S. state and local markets continued to grow at double-digit organic rates in the third quarter, with revenues increasing 10% and 16%, respectively. Conversely, our oil and gas markets, particularly in Canada, have become increasingly challenged.  Despite the downturn in this market, our backlog reached a record high of $2.5 billion, up 12% year-over-year, giving us confidence that growth will continue across our other end markets.”

 

(1)                                 Refer to Reconciliation of Revenue and Operating Results table for a reconciliation to GAAP.

(2)                                 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.

 


 

Nine-Month Results

 

Revenue for the nine-month period was $2.0 billion and net revenue was $1.5 billion.  Operating income for the nine-month period was $129 million and EPS was $1.44, up 45% and 62%, respectively, from the prior year period.  On an ongoing basis, EPS totaled $1.50, up 16% year-over-year.

 

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 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 ongoing diluted EPS for the fourth quarter of fiscal 2017 to range from $0.60 to $0.62.  Net revenue for the fourth quarter is expected to range from $500 million to $520 million.  For fiscal 2017, ongoing diluted EPS is expected to range from $2.10 to $2.12 and net revenue is expected to range from $2.00 billion to $2.02 billion.

 

Webcast

 

Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the third quarter 2017 results through a link posted on the Company’s website at tetratech.com on August 3, 2017 at 8:00 a.m. (PT).

 

2


 

Reconciliation of Revenue and Operating Results

 

In thousands (except EPS data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

July 2,
2017

 

June 26,
2016

 

%
Y/Y

 

July 2,
2017

 

June 26,
2016

 

%
Y/Y

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

685,539

 

$

666,869

 

3

%

$

2,018,171

 

$

1,854,961

 

9

%

Subcontractor costs

 

(187,061

)

(168,235

)

 

 

(518,188

)

(456,606

)

 

 

Net revenue

 

$

498,478

 

$

498,634

 

0

%

$

1,499,983

 

$

1,398,355

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

685,539

 

$

666,869

 

3

%

$

2,018,171

 

$

1,854,961

 

9

%

RCM

 

(4,192

)

(5,202

)

 

 

(12,401

)

(36,781

)

 

 

Ongoing revenue

 

$

681,347

 

$

661,667

 

3

%

$

2,005,770

 

$

1,818,180

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

498,478

 

$

498,634

 

0

%

$

1,499,983

 

$

1,398,355

 

7

%

RCM

 

(902

)

(2,372

)

 

 

1,006

 

(12,537

)

 

 

Ongoing net revenue

 

$

497,576

 

$

496,262

 

0

%

$

1,500,989

 

$

1,385,818

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

45,884

 

$

39,085

 

17

%

$

128,695

 

$

88,667

 

45

%

Earn-out (gain) expense

 

—

 

—

 

 

 

(7,149

)

2,823

 

 

 

RCM

 

1,251

 

4,023

 

 

 

12,759

 

9,691

 

 

 

Acq. & integration

 

—

 

1,005

 

 

 

—

 

16,916

 

 

 

Ongoing operating income

 

$

47,135

 

$

44,113

 

7

%

$

134,305

 

$

118,097

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

$

0.52

 

$

0.44

 

18

%

$

1.44

 

$

0.89

 

62

%

Earn-out (gain) expense

 

—

 

—

 

 

 

(0.08

)

0.03

 

 

 

RCM

 

0.01

 

0.05

 

 

 

0.14

 

0.10

 

 

 

Acq. & integration

 

—

 

0.01

 

 

 

—

 

0.27

 

 

 

Coffey debt prepayment

 

—

 

—

 

 

 

—

 

0.03

 

 

 

Retroactive R&D tax

 

—

 

—

 

 

 

—

 

(0.03

)

 

 

Ongoing EPS

 

$

0.53

 

$

0.50

 

6

%

$

1.50

 

$

1.29

 

16

%

 

3


 

About Tetra Tech

 

Tetra Tech is a leading, global provider of consulting and engineering services.  We are differentiated by Leading with Science® to provide innovative technical solutions to our clients.  We support global commercial and government clients focused on water, environment, infrastructure, resource management, energy, and international development.  With 16,000 associates worldwide, Tetra Tech provides clear solutions to complex problems.  For more information about Tetra Tech, please visit tetratech.com, follow us on Twitter (@TetraTech), or like us on Facebook.

 

CONTACTS:

Jim Wu, Investor Relations

Charlie MacPherson, Media & Public Relations

(626) 470-2844

 

Forward-Looking Statements

 

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: continuing worldwide political and economic uncertainties; the new U.S. Administration’s potential changes to fiscal and tax policies; the cyclicality in demand for our overall services; the fluctuation in demand for oil and gas, and mining services; risks related to international operations; concentration of revenues from U.S. government agencies and potential funding disruptions by these agencies; dependence on winning or renewing U.S. government contracts; the delay or unavailability of public funding on U.S. government contracts; the U.S. government’s right to modify, delay, curtail or terminate contracts at its convenience; compliance with government procurement laws and regulations; credit risks associated with certain clients in certain geographic areas or industries; acquisition strategy and integration risks; goodwill or other intangible asset impairment; the failure to comply with worldwide anti-bribery laws; the failure to comply with domestic and international export laws; the failure to properly manage projects; the loss of key personnel or the inability to attract and retain qualified personnel; the ability of our employees to obtain government granted eligibility; the use of estimates and assumptions in the preparation of financial statements; the ability to maintain adequate workforce utilization; the use of the percentage-of-completion method of accounting; the inability to accurately estimate and control contract costs; the failure to adequately recover on our claims for additional contract costs; the failure to win or renew contracts with private and public sector clients; growth strategy management; backlog cancellation and adjustments; risks relating to cyber security breaches; the failure of partners to perform on joint projects; the failure of subcontractors to satisfy their obligations; requirements to pay liquidated damages based on contract performance; the adoption of new legal requirements; changes in resource management, environmental or infrastructure industry laws, regulations or programs; changes in capital markets and the access to capital; credit agreement covenants; industry competition; liability related to legal proceedings, investigations, and disputes; the availability of third-party insurance coverage; the ability to obtain adequate bonding; employee, agent, or partner misconduct; employee risks related to international travel; safety programs; conflict of interest issues; liabilities relating to reports and opinions; liabilities relating to environmental laws and regulations; force majeure events; protection of intellectual property rights; stock price volatility; and the ability to impede a business combination based on Delaware law and charter documents.  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.  Readers should not place undue reliance on forward-looking statements since such information speaks only as of the date of this release.

 

4


 

Tetra Tech, Inc.

Condensed Consolidated Balance Sheets

(unaudited - in thousands, except par value)

 

 

 

July 2,
2017

 

October 2,
2016

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

138,772

 

$

160,459

 

Accounts receivable - net

 

731,291

 

714,336

 

Prepaid expenses and other current assets

 

56,920

 

46,262

 

Income taxes receivable

 

35,294

 

14,371

 

Total current assets

 

962,277

 

935,428

 

 

 

 

 

 

 

Property and equipment - net

 

59,423

 

67,827

 

Investments in and advances to unconsolidated joint ventures

 

2,852

 

2,064

 

Goodwill

 

729,338

 

717,988

 

Intangible assets - net

 

31,795

 

48,962

 

Deferred income taxes

 

2,238

 

630

 

Other long-term assets

 

31,801

 

27,880

 

Total Assets

 

$

1,819,724

 

$

1,800,779

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

156,556

 

$

158,773

 

Accrued compensation

 

116,606

 

129,184

 

Billings in excess of costs on uncompleted contracts

 

125,603

 

88,223

 

Current portion of long-term debt

 

15,543

 

15,510

 

Current contingent earn-out liabilities

 

2,649

 

4,296

 

Other current liabilities

 

72,054

 

85,100

 

Total current liabilities

 

489,011

 

481,086

 

 

 

 

 

 

 

Deferred income taxes

 

53,671

 

60,348

 

Long-term debt

 

310,270

 

331,501

 

Long-term contingent earn-out liabilities

 

807

 

4,461

 

Other long-term liabilities

 

50,931

 

53,980

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

Preferred stock - Authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at July 2, 2017 and October 2, 2016

 

—

 

—

 

Common stock - Authorized, 150,000 shares of $0.01 par value; issued and outstanding, 56,762 and 57,042 shares at July 2, 2017 and October 2, 2016, respectively

 

568

 

570

 

Additional paid-in capital

 

229,803

 

260,340

 

Accumulated other comprehensive loss

 

(119,232

)

(128,008

)

Retained earnings

 

803,725

 

736,357

 

Tetra Tech stockholders’ equity

 

914,864

 

869,259

 

Noncontrolling interests

 

170

 

144

 

Total equity

 

915,034

 

869,403

 

Total Liabilities and Equity

 

$

1,819,724

 

$

1,800,779

 

 


 

Tetra Tech, Inc.

Condensed Consolidated Statements of Income

(unaudited - in thousands, except per share data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

July 2,

 

June 26,

 

July 2,

 

June 26,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

685,539

 

$

666,869

 

$

2,018,171

 

$

1,854,961

 

Subcontractor costs

 

(187,061

)

(168,235

)

(518,188

)

(456,606

)

Other costs of revenue

 

(408,228

)

(413,551

)

(1,247,369

)

(1,165,323

)

Gross profit

 

90,250

 

85,083

 

252,614

 

233,032

 

Selling, general and administrative expenses

 

(44,366

)

(44,993

)

(131,068

)

(124,626

)

Acquisition and integration expenses

 

—

 

(1,005

)

—

 

(16,916

)

Contingent consideration - fair value adjustments

 

—

 

—

 

7,149

 

(2,823

)

Operating income

 

45,884

 

39,085

 

128,695

 

88,667

 

Interest expense, net

 

(2,795

)

(2,590

)

(8,802

)

(8,501

)

Income before income tax expense

 

43,089

 

36,495

 

119,893

 

80,166

 

Income tax expense

 

(13,114

)

(10,805

)

(36,462

)

(27,497

)

Net income including noncontrolling interests

 

29,975

 

25,690

 

83,431

 

52,669

 

Net loss (income) from noncontrolling interests

 

8

 

4

 

(24

)

9

 

Net income attributable to Tetra Tech

 

$

29,983

 

$

25,694

 

$

83,407

 

$

52,678

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Tetra Tech:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.52

 

$

0.44

 

$

1.46

 

$

0.90

 

Diluted

 

$

0.52

 

$

0.44

 

$

1.44

 

$

0.89

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

57,184

 

57,796

 

57,108

 

58,483

 

Diluted

 

58,161

 

58,616

 

58,116

 

59,228

 

 

 

 

 

 

 

 

 

 

 

Cash dividends paid per share

 

$

0.10

 

$

0.09

 

$

0.28

 

$

0.25

 

 


 

Tetra Tech, Inc.

Condensed Consolidated Statements of Cash Flows

 (unaudited - in thousands)

 

 

 

Nine Months Ended

 

 

 

July 2,

 

June 26,

 

 

 

2017

 

2016

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net income including noncontrolling interests

 

$

83,431

 

$

52,669

 

 

 

 

 

 

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

Depreciation and amortization

 

34,377

 

33,835

 

Equity in income of unconsolidated joint ventures

 

(3,504

)

(1,557

)

Distributions of earnings from unconsolidated joint ventures

 

2,747

 

2,305

 

Stock-based compensation

 

10,037

 

9,299

 

Excess tax benefits from stock-based compensation

 

—

 

(576

)

Deferred income taxes

 

27,886

 

7,313

 

Provision for doubtful accounts

 

(1,891

)

9,488

 

Fair value adjustments to contingent consideration

 

(7,149

)

2,823

 

Gain on disposal of property and equipment

 

(369

)

(777

)

Lease termination costs and related asset impairment

 

—

 

2,946

 

 

 

 

 

 

 

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

 

 

 

 

 

Accounts receivable

 

(9,485

)

19,107

 

Prepaid expenses and other assets

 

(14,806

)

(4,791

)

Accounts payable

 

(2,484

)

(2,566

)

Accrued compensation

 

(13,390

)

(2,035

)

Billings in excess of costs on uncompleted contracts

 

36,401

 

(8,370

)

Other liabilities

 

(5,523

)

(14,976

)

Income taxes receivable/payable

 

(64,705

)

(14,335

)

Net cash provided by operating activities

 

71,573

 

89,802

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Capital expenditures

 

(7,018

)

(10,107

)

Payments for business acquisitions, net of cash acquired

 

(8,039

)

(81,256

)

Changes in restricted cash

 

—

 

(3,384

)

Proceeds from sale of property and equipment

 

507

 

3,291

 

Investments in unconsolidated joint ventures

 

—

 

(768

)

Net cash used in investing activities

 

(14,550

)

(92,224

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Payments on long-term debt

 

(220,845

)

(102,213

)

Proceeds from borrowings

 

199,574

 

200,000

 

Payments of earn-out liabilities

 

—

 

(1,001

)

Debt pre-payment costs

 

—

 

(1,935

)

Excess tax benefits from stock-based compensation

 

—

 

576

 

Repurchases of common stock

 

(60,000

)

(75,000

)

Dividends paid

 

(16,039

)

(14,578

)

Net proceeds from issuance of common stock

 

17,992

 

12,679

 

Net cash (used in) provided by financing activities

 

(79,318

)

18,528

 

 

 

 

 

 

 

Effect of foreign exchange rate changes on cash

 

608

 

2,486

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(21,687

)

18,592

 

Cash and cash equivalents at beginning of period

 

160,459

 

135,326

 

Cash and cash equivalents at end of period

 

$

138,772

 

$

153,918

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest

 

$

8,770

 

$

9,089

 

Income taxes, net of refunds received of $1.6 million and $3.0 million

 

$

70,146

 

$

29,405

 

 


 

Tetra Tech, Inc.

Regulation G Information

July 2, 2017

 

Reconciliation of Revenue to Revenue, Net of Subcontractor Costs (“Net Revenue”)

(in millions)

 

 

 

 

 

 

 

2016

 

2017

 

 

 

2014

 

2015

 

1st Qtr

 

2nd Qtr

 

6 mos

 

3rd Qtr

 

9 mos

 

4th Qtr

 

Total

 

1st Qtr

 

2nd Qtr

 

6 mos

 

3rd Qtr

 

9 mos

 

Consolidated (as reported)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

2,483.8

 

2,299.3

 

560.7

 

627.4

 

1,188.1

 

666.9

 

1,855.0

 

728.5

 

2,583.5

 

668.9

 

663.8

 

1,332.6

 

685.5

 

2,018.2

 

Subcontractor Costs

 

(623.9

)

(580.6

)

(139.8

)

(148.6

)

(288.4

)

(168.2

)

(456.6

)

(197.7

)

(654.3

)

(179.3

)

(151.8

)

(331.1

)

(187.0

)

(518.2

)

Net Revenue

 

1,859.9

 

1,718.7

 

420.9

 

478.8

 

899.7

 

498.7

 

1,398.4

 

530.8

 

1,929.2

 

489.6

 

512.0

 

1,001.5

 

498.5

 

1,500.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEI Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

1,018.5

 

993.6

 

240.4

 

226.0

 

466.4

 

264.7

 

731.1

 

297.2

 

1,028.3

 

287.1

 

268.9

 

556.1

 

279.6

 

835.7

 

Subcontractor Costs

 

(207.4

)

(230.4

)

(61.0

)

(59.6

)

(120.6

)

(73.4

)

(194.0

)

(80.9

)

(274.8

)

(86.1

)

(68.3

)

(154.4

)

(69.5

)

(223.9

)

Net Revenue

 

811.1

 

763.2

 

179.4

 

166.4

 

345.8

 

191.3

 

537.1

 

216.3

 

753.5

 

201.0

 

200.6

 

401.7

 

210.1

 

611.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RME Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

1,332.6

 

1,282.0

 

315.7

 

403.9

 

719.7

 

414.9

 

1,134.5

 

435.2

 

1,569.7

 

396.0

 

418.9

 

814.9

 

417.5

 

1,232.4

 

Subcontractor Costs

 

(363.3

)

(349.9

)

(81.4

)

(94.6

)

(175.9

)

(109.9

)

(285.9

)

(125.3

)

(411.2

)

(109.3

)

(103.9

)

(213.1

)

(130.1

)

(343.2

)

Net Revenue

 

969.3

 

932.1

 

234.3

 

309.3

 

543.8

 

305.0

 

848.6

 

309.9

 

1,158.5

 

286.7

 

315.0

 

601.8

 

287.4

 

889.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ongoing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

2,262.7

 

2,212.7

 

539.9

 

616.6

 

1,156.5

 

661.7

 

1,818.2

 

713.1

 

2,531.3

 

660.7

 

663.8

 

1,324.4

 

681.3

 

2,005.8

 

Subcontractor Costs

 

(482.3

)

(517.3

)

(126.2

)

(140.8

)

(267.0

)

(165.4

)

(432.4

)

(187.1

)

(619.4

)

(172.9

)

(148.1

)

(321.0

)

(183.8

)

(504.8

)

Net Revenue

 

1,780.4

 

1,695.4

 

413.7

 

475.8

 

889.5

 

496.3

 

1,385.8

 

526.0

 

1,911.9

 

487.8

 

515.7

 

1,003.4

 

497.5

 

1,501.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RCM Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

221.1

 

86.6

 

20.8

 

10.8

 

31.6

 

5.2

 

36.8

 

15.4

 

52.2

 

8.2

 

—

 

8.2

 

4.2

 

12.4

 

Subcontractor Costs

 

(141.6

)

(63.3

)

(13.6

)

(7.8

)

(21.4

)

(2.8

)

(24.2

)

(10.6

)

(34.9

)

(6.4

)

(3.7

)

(10.1

)

(3.3

)

(13.4

)

Net Revenue

 

79.5

 

23.3

 

7.2

 

3.0

 

10.2

 

2.4

 

12.6

 

4.8

 

17.3

 

1.8

 

(3.7

)

(1.9

)

0.9

 

(1.0

)

 

Reconciliation of Net Income Attributable to Tetra Tech to EBITDA

(in thousands)

 

 

 

 

 

 

 

2016

 

2017

 

 

 

2014

 

2015

 

1st Qtr

 

2nd Qtr

 

6 mos

 

3rd Qtr

 

9 mos

 

4th Qtr

 

Total

 

1st Qtr

 

2nd Qtr

 

6 mos

 

3rd Qtr

 

9 mos

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Attributable to Tetra Tech

 

108,266

 

39,074

 

23,239

 

3,744

 

26,983

 

25,694

 

52,678

 

31,105

 

83,783

 

26,562

 

26,862

 

53,424

 

29,983

 

83,407

 

Interest Expense(1)

 

9,490

 

7,363

 

1,660

 

4,251

 

5,911

 

2,590

 

8,501

 

2,888

 

11,389

 

2,908

 

3,099

 

6,007

 

2,795

 

8,802

 

Depreciation(2) 

 

26,452

 

23,110

 

5,303

 

5,968

 

11,271

 

5,912

 

17,183

 

5,573

 

22,756

 

5,251

 

5,764

 

11,015

 

5,345

 

16,360

 

Amortization(2)

 

27,288

 

20,206

 

4,311

 

5,447

 

9,757

 

6,331

 

16,088

 

5,990

 

22,078

 

5,940

 

5,898

 

11,838

 

5,607

 

17,445

 

Contingent Consideration

 

(58,694

)

(3,113

)

1,001

 

1,822

 

2,823

 

—

 

2,823

 

—

 

2,823

 

—

 

(7,149

)

(7,149

)

—

 

(7,149

)

Goodwill and other IA Impairment

 

—

 

60,763

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Income Tax Expense

 

35,668

 

41,093

 

8,030

 

8,661

 

16,692

 

10,805

 

27,497

 

13,117

 

40,613

 

10,358

 

12,990

 

23,348

 

13,114

 

36,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

148,470

 

188,496

 

43,544

 

29,893

 

73,437

 

51,332

 

124,770

 

58,673

 

183,442

 

51,019

 

47,464

 

98,483

 

56,844

 

155,327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition Expenses

 

—

 

—

 

—

 

7,925

 

7,925

 

—

 

7,925

 

—

 

7,925

 

—

 

—

 

—

 

—

 

—

 

Integration Expenses

 

—

 

—

 

—

 

7,986

 

7,986

 

1,005

 

8,991

 

2,632

 

11,623

 

—

 

—

 

—

 

—

 

—

 

RCM

 

42,193

 

6,813

 

5,089

 

201

 

5,291

 

3,840

 

9,131

 

1,968

 

11,098

 

2,887

 

7,970

 

10,857

 

1,127

 

11,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ongoing EBITDA

 

190,663

 

195,309

 

48,633

 

46,005

 

94,639

 

56,177

 

150,817

 

63,273

 

214,088

 

53,906

 

55,434

 

109,340

 

57,971

 

167,311

 

 

(1) Includes amortization of deferred financing fee

(2) Varies slightly from the Statements of Cash Flows, which includes amortization of deferred financing fee