PASADENA, Calif.--(BUSINESS WIRE)--Tetra Tech, Inc. (NASDAQ:
TTEK -
News) today announced results for the fourth
quarter and fiscal year ended September 28, 2008. The Company exceeded
both its revenue and earnings guidance for the quarter and fiscal year.
Fourth Quarter Results
Revenue in the quarter was $649.2 million, up 49.3% from $434.8 million,
and revenue, net of subcontractor costs, was $348.8 million, up 26.6%
from $275.5 million for the same quarter last year. Income from
operations for the quarter was $30.8 million, up 25.9% from $24.5
million for the same quarter last year. Net income for the quarter was
$18.2 million, up 29.2% from $14.1 million for the same quarter last
year. Diluted earnings per share (EPS) for the quarter was $0.30, up
25.0% from $0.24 for the same quarter last year. Backlog at the end of
the quarter was a record $1.65 billion, up 30.8% from $1.26 billion at
the end of the same quarter last year. Cash generated from operations in
the fourth quarter was $25.3 million, down 27.6% from $34.9 million for
the same quarter last year.
Compared to the fourth quarter of fiscal 2007, Tetra Tech’s
federal government business grew 23.2%, driven by increased workload
with the U.S. Agency for International Development; state and local
business declined 11.7%, due largely to reduced activity on school
design projects and the conclusion of a large wired communications
project; and commercial business grew 54.3%, driven largely by wind
energy and core water and environmental projects.
Fiscal Year Results
Revenue for fiscal 2008 was $2.145 billion, up 38.1% from $1.554
billion, and revenue, net of subcontractor costs, was $1.246 billion, an
increase of 23.0% from $1.013 billion for the same period last year.
Income from operations for fiscal 2008 was $106.4 million, up 23.3% from
$86.3 million for the same period last year. Net income for fiscal 2008
was $60.9 million, up 31.4% from $46.4 million for the same period last
year. Diluted EPS for fiscal 2008 was $1.02, up 29.1% from $0.79 for the
same period last year. Cash generated from operations improved in fiscal
2008 to $68.4 million, up 46.5% from $46.7 million for the same period
last year.
Tetra Tech’s Chairman and CEO Dan Batrack
stated, “Tetra Tech had an outstanding fiscal
2008 and we are pleased to report record fourth quarter and fiscal 2008
results. Our excellent performance was driven by our focus on water,
environmental, and alternative energy solutions. We thank all of our
associates throughout the Company, without whose dedication to service
and excellence we could not have accomplished these record results. We
also thank our clients for entrusting us with a growing share of their
most complex project needs. While we are clearly aware of the current
global economic challenges, we are confident in our growth outlook for
fiscal 2009. We remain committed to achieving our long-term goal of 15%
top and bottom line growth, with approximately half resulting from
organic operations and half from acquisitions.”
In thousands (except EPS data)
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
Sept. 28,
2008
|
|
Sept. 30,
2007
|
|
Sept. 28,
2008
|
|
Sept. 30,
2007
|
|
Revenue
|
|
$
|
649,204
|
|
|
$
|
434,765
|
|
|
$
|
2,145,254
|
|
|
$
|
1,553,888
|
|
|
Revenue, net of subcontractor costs
|
|
|
348,764
|
|
|
|
275,459
|
|
|
|
1,245,545
|
|
|
|
1,012,915
|
|
|
Income from operations
|
|
|
30,810
|
|
|
|
24,470
|
|
|
|
106,400
|
|
|
|
86,297
|
|
|
Interest expense, net
|
|
|
(388
|
)
|
|
|
(389
|
)
|
|
|
(2,987
|
)
|
|
|
(2,290
|
)
|
|
Loss on retirement of debt
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
|
|
(4,226
|
)
|
|
Income tax expense
|
|
|
(12,224
|
)
|
|
|
(9,947
|
)
|
|
|
(42,507
|
)
|
|
|
(33,437
|
)
|
|
Income from continuing operations
|
|
|
18,198
|
|
|
|
14,133
|
|
|
|
60,906
|
|
|
|
46,344
|
|
|
Income (loss) from discontinued operation, net of tax
|
|
|
–
|
|
|
|
(43
|
)
|
|
|
–
|
|
|
|
9
|
|
|
Net income
|
|
$
|
18,198
|
|
|
$
|
14,090
|
|
|
$
|
60,906
|
|
|
$
|
46,353
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.31
|
|
|
$
|
0.24
|
|
|
$
|
1.04
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.30
|
|
|
$
|
0.24
|
|
|
$
|
1.02
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
59,508
|
|
|
|
58,227
|
|
|
|
58,813
|
|
|
|
57,948
|
|
|
Diluted
|
|
|
60,563
|
|
|
|
58,911
|
|
|
|
59,632
|
|
|
|
58,553
|
|
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 diluted EPS for the first quarter of fiscal 2009 to
be in the range of $0.25 to $0.27. Revenue, net of subcontractor costs,
for the first quarter is expected to range from $310 million to $330
million. For fiscal 2009, Tetra Tech expects diluted EPS to be $1.10 to
$1.18. Revenue, net of subcontractor costs, for fiscal 2009 is expected
to range from $1.275 billion to $1.375 billion.
Webcast
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 13, 2008 at 8:00 a.m. (PST).
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 alternative energy. With more than 8,500
associates located in the United States and internationally, Tetra Tech’s
capabilities span the full project life cycle.
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: worldwide political and economic
uncertainties; fluctuations in annual revenue, expenses and operating
results; the cyclicality in demand for state and local government
services; concentration of revenues from government agencies and funding
disruptions by these agencies; a shift in U.S. defense spending; a delay
in the completion of the U.S. government budget process; impact of
downturns in the financial markets and reductions in government budgets;
violations of government contractor regulations; dependence on winning
or renewing federal, state and local government contracts; the government’s
right to modify, delay, curtail or terminate contracts at its
convenience; the failure to properly manage projects; the loss of key
personnel or the inability to attract and retain qualified personnel;
the use of estimates and assumptions in the preparation of financial
statements; the use of the percentage-of-completion method of
accounting; the inability to accurately estimate contract risks, revenue
and costs; the failure to win or renew contracts with private and public
sector clients; acquisition strategy risks; goodwill impairment; growth
strategy management; adverse resolution of an IRS examination; backlog
cancellation and adjustments; risks associated with international
operations; the failure of partners to perform on joint projects; the
inability to find qualified subcontractors; the failure of
subcontractors to satisfy their obligations; changes in existing
environmental laws, regulations or programs; credit risks associated
with commercial clients; changes in capital markets and the access to
capital; credit agreement covenants; industry competition; the
volatility of common stock value; liability risks and the ability to
obtain or maintain adequate insurance; the ability to obtain adequate
bonding; safety programs; conflict of interest issues; force majeure
events; protection of intellectual property rights; and the
implementation of the enterprise resource planning system. 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.
