Exhibit 99.1
November 17, 2005
CORRECTING and REPLACING
Tetra Tech Reports Fourth Quarter Results
Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK) announced today that it is correcting and replacing the press release issued on November 16, 2005. In the text, under the heading “Business Outlook,” the third sentence in the second paragraph should read: Revenue, net of subcontractor costs, for the first quarter is expected to range from $200 million to $215 million (rather than $215 million to $225 million).
The corrected release reads:
Tetra Tech Reports Fourth Quarter Results
Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the fourth quarter ended October 2, 2005. In the quarter, diluted earnings per share was $0.16. In the fourth quarter, the Company accounted for the divestiture of three non-core business units. The effect of these divestitures is shown as discontinued operations. In the fourth quarter, diluted earnings per share from continuing operations was $0.22. Revenue from continuing operations was $351.2 million, and revenue, net of subcontractor costs was $230.4 million in the quarter. Cash generated from operations was approximately $30 million in the fourth quarter.
Fourth Quarter Results
Revenue for the fourth quarter was $351.2 million, down 7.4% from $379.3 million for the same quarter last year, primarily due to the exit from wireless communications and reductions in non-core business during fiscal 2005. Revenue, net of subcontractor costs, for the quarter was $230.4 million, down 10.3% from $257.0 million for the same quarter last year. Income from operations for the fourth quarter was $18.2 million compared to a loss of $11.7 million for the same period last year. Loss from discontinued operations, net of tax, was $3.4 million versus $2.4 million for the same period last year. Net income for the fourth quarter was $9.1 million compared to a net loss of $11.3 million for the same period last year. Diluted earnings per share from continuing operations was $0.22 compared to a loss of $0.16 for the same period last year. Diluted loss per share from discontinued operations was $0.06 versus $0.04 last year. Overall, diluted earnings per share was $0.16 compared to a loss of $0.20 last year. Of the three discontinued operations, one divestiture was completed during the fourth quarter, and the others are expected to be completed in the first half of fiscal 2006.
Twelve-Month Results
Revenue for the fiscal year ended October 2, 2005 was $1.3 billion, down 6.5% from $1.4 billion for the same period last year, primarily due to the exit from wireless communications and reductions in non-core business during fiscal 2005. Revenue, net of subcontractor costs, for fiscal 2005 was $899.2 million, a decrease of 7.8%, from $975.2 million for fiscal 2004. Including the non-cash impairment charge of $105.6 million, loss from operations for fiscal 2005
was $113.7 million compared to income of $49.6 million for the same period last year. Loss from discontinued operations, net of tax, was $0.8 million versus income of $0.3 million for the same period last year. Net loss for fiscal 2005 was $99.5 million compared to net income of $23.7 million for the same period last year. Diluted loss per share from continuing operations was $1.74 compared to earnings of $0.41 per share for fiscal 2004. Diluted loss per share from discontinued operations was $0.01 versus $0.0 last year. Overall, diluted loss per share was $1.75 versus net diluted earnings per share of $0.41 last year.
In thousands, except EPS (preliminary)
| | Three Months Ended | | Twelve Months Ended | |
| | Oct. 2, 2005 | | Oct. 3, 2004 | | Oct. 2, 2005* | | Oct. 3, 2004 | |
Revenue | | $ | 351,184 | | $ | 379,252 | | $ | 1,286,031 | | $ | 1,376,159 | |
| | | | | | | | | | | | | |
Revenue, Net of Subcontractor Costs | | 230,424 | | 257,004 | | 899,179 | | 975,209 | |
| | | | | | | | | |
Income/(Loss) from Operations | | 18,246 | | (11,707 | ) | (113,667 | ) | 49,647 | |
| | | | | | | | | |
Income/(Loss) from Continuing Operations | | 12,469 | | (8,879 | ) | (98,678 | ) | 23,469 | |
| | | | | | | | | |
Income/(Loss) from Discontinued Operations, Net of Tax | | (3,413 | ) | (2,382 | ) | (791 | ) | 272 | |
| | | | | | | | | |
Net Income/(Loss) | | 9,056 | | (11,260 | ) | (99,469 | ) | 23,742 | |
| | | | | | | | | |
Basic Earnings (Loss) Per Share: | | | | | | | | | |
Income (Loss) from Continuing Operations | | $ | 0.22 | | $ | (0.16 | ) | $ | (1.74 | ) | $ | 0.42 | |
Income (Loss) from Discontinued Operations | | (0.06 | ) | (0.04 | ) | (0.01 | ) | — | |
Net Income (Loss) | | $ | 0.16 | | $ | (0.20 | ) | $ | (1.75 | ) | $ | 0.42 | |
| | | | | | | | | | | | | |
Diluted Earnings (Loss) Per Share: | | | | | | | | | |
Income (Loss) from Continuing Operations | | $ | 0.22 | | $ | (0.16 | ) | $ | (1.74 | ) | $ | 0.41 | |
Income (loss) from Discontinued Operations | | (0.06 | ) | (0.04 | ) | (0.01 | ) | (0.01 | ) |
Net Income (Loss) | | $ | 0.16 | | $ | (0.20 | ) | $ | (1.75 | ) | $ | 0.41 | |
| | | | | | | | | |
Weighted Average Common Shares Outstanding: | | | | | | | | | |
Basic | | 57,026 | | 56,382 | | 56,736 | | 55,969 | |
Diluted | | 57,546 | | 56,382 | | 56,736 | | 57,288 | |
* Results include a non-cash impairment charge in the second quarter of fiscal 2005 of $105.6 million for goodwill and other identifiable intangible assets.
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Business Outlook
The following projections are based on current expectations. These projections are forward-looking and the actual results could differ materially. These projections do not include the potential impact of acquisitions or other similar transactions that may be completed after the date of this release. As previously disclosed, the Company continues to exit from its non-core construction-related business and is continuing its investigation of certain possible irregular activities at one of its operating units. Although absolute assurance cannot be given at this time, the Company does not believe that the completion of this investigation will require material changes to its financial statements. The Business Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.
The divestiture of non-core business will reduce fiscal 2006 revenue, net of subcontractor costs, by approximately 15%. Tetra Tech expects diluted earnings per share for the first quarter of fiscal 2006 to be in the range of $0.14 to $0.16 before the effect of FASB 123R. Revenue, net of subcontractor costs, for the first quarter is expected to range from $200 million to $215 million. For fiscal 2006, Tetra Tech expects diluted earnings per share to be in the range of $0.68 to $0.75 before the effect of FASB 123R. Revenue, net of subcontractor costs, for fiscal 2006 is expected to range from $850 million to $950 million.
The Company continues to examine the effect of FASB 123R, which is expected to be approximately $0.09 to $0.10 diluted earnings per share during fiscal 2006.
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 17, 2005 at 8:00 a.m. (PST).
About Tetra Tech (www.tetratech.com)
Tetra Tech is a leading provider of consulting, engineering and technical services. With over 7,000 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, program management, construction management, and operations and maintenance.
CONTACT: Mike Bieber at (626) 351-4664
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
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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: fluctuations in quarterly operating results; the impact of downturns in the financial markets and reductions in government budgets; volatility of common stock value; concentration of revenues from government agencies and funding disruptions by these agencies; failure to properly manage projects; acquisition strategy risks; management of growth strategy; use of the percentage-of-completion method of accounting; adverse resolution of an IRS examination; loss of key personnel or the inability to attract and retain qualified personnel; implementation of the enterprise resource planning system; international operations risks; credit risks associated with commercial clients; violations of government contractor regulations; competitive bidding for government contracts; the affect of a negative government audit; the inability to accurately estimate contract risks, revenue and costs; backlog cancellation and adjustments; client base consolidation; failure of partners to perform on joint projects; inability to find qualified subcontractors; changes in existing environmental laws, regulations or programs; competition; restrictive covenants in debt agreements; risks of professional and other liabilities; adverse resolution of litigation; conflict of interest issues; changes in accounting for equity-related compensation; expenses associated with corporate governance; and disruption of operations due to computer viruses or terrorism. 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.
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