USA. Tetra Tech Reports First Quarter 2017 Results
Thursday, 02 February 2017
Revenue of $669 million, up 19% year over year
Backlog of $2.47 billion, up 34% year over year
EPS $0.46; ongoing EPS $0.49, up 17% year over year
Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the first quarter ended January 1, 2017.
First Quarter Results
Revenue in the first quarter totaled $669 million, up 19% year over year. For ongoing operations1, revenue totaled $661 million, and revenue, net of subcontractor costs2 (net revenue), was $488 million, up 22% and 18%, respectively, compared to the same period in fiscal 2016. Operating income for the first quarter was $40 million, and on an ongoing basis totaled $43 million. Earnings per share (EPS) were $0.46, and on an ongoing basis totaled $0.49, up 17% year over year. Backlog of $2.47 billion was up 34% year over year.
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.
Quarterly Dividend and Share Repurchase Program
On January 30, 2017, Tetra Tech’s Board of Directors declared a quarterly dividend of $0.09 per share payable on March 3, 2017 to stockholders of record as of February 17, 2017. Additionally, the Company has $190 million remaining under the previously approved $200 million share repurchase program.
Comments on Results
Tetra Tech’s Chairman and CEO, Dan Batrack commented, “Tetra Tech started fiscal year 2017 with very strong results, exceeding our quarterly guidance for both net revenue and earnings. Services across our core markets of water, environment, and infrastructure remain in high demand, and the initial priorities established by the new Administration represent additional opportunities for Tetra Tech in all areas of U.S. infrastructure. Strong orders in our federal and state and local markets increased our backlog to a record $2.5 billion, providing a solid platform for growth as we enter the second quarter.”
Acquisition of Eco Logical Australia
Tetra Tech today is also announcing the acquisition of Eco Logical Australia, a multi-disciplinary consulting firm with over 160 staff that provide innovative, high-end environmental and ecological services. Like Tetra Tech, Eco Logical has established a reputation of Leading with Science and has built a strong presence in the Australian environmental space. Eco Logical advances Tetra Tech’s strategy to grow its environmental and water services in the Asia-Pacific region. The terms of the acquisition have not been disclosed. 2
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 second quarter of fiscal 2017 to range from $0.42 to $0.47. Net revenue for the second quarter is expected to range from $450 million to $480 million. For fiscal 2017, Tetra Tech expects diluted EPS to range from $2.00 to $2.20 and net revenue to range from $2.0 billion to $2.1 billion.
Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the first quarter 2017 results through a link posted on the Company’s website at tetratech.com on February 2, 2017 at 8:00 a.m. (PT).
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Last Updated ( Thursday, 02 February 2017 )