Exhibit 99.1
May 3, 2017
Tetra Tech Reports Second Quarter 2017 Results
· EPS $0.46; ongoing EPS $0.48, up 30% Y/Y
· Operating cash of $109M; YTD cash flow up 67% Y/Y
· Record backlog of $2.5 billion
· Quarterly dividend increased 11%
Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the second quarter ended April 2, 2017.
Second Quarter Results
Revenue in the second quarter totaled $664 million, up 6% year-over-year. For ongoing(1) operations, revenue, net of subcontractor costs(2) (net revenue), was $516 million, up 8% compared to the same period in fiscal 2016. Operating income for the second quarter was $43 million, and on an ongoing basis totaled $44 million, up 27% year-over-year. Earnings per share (EPS) were $0.46, and on an ongoing basis totaled $0.48, up 30% year-over-year. Backlog from our ongoing operations of $2.5 billion was up 18% year-over-year. Cash generated from operations was $109.1 million.
Quarterly Dividend and Share Repurchase Program
On May 1, 2017, Tetra Tech’s Board of Directors declared an 11% increase in the quarterly dividend, raising it to $0.10 per share payable on June 2, 2017 to stockholders of record as of May 18, 2017. Additionally, the Company has $180 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 $20 million was completed in the first six months.
Comments on Results
Tetra Tech’s Chairman and CEO, Dan Batrack commented, “Tetra Tech generated solid results for the second quarter, exceeding our quarterly guidance for both net revenue and EPS. Our performance this quarter was driven by broad-based growth across most of our end-markets, which resulted in our fifth consecutive quarter of backlog increase. Our Company continues to benefit from our technical leadership positions with our U.S. federal clients, specifically with the Department of Defense, and in U.S. state and local infrastructure markets, which contributed to our record high backlog. Given this trend and the strength of our six-month results, we are increasing our guidance for fiscal 2017.”
(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.
Six-Month Results
Revenue for the six-month period was $1.3 billion and net revenue was $1.0 billion. Operating income for the six-month period was $83 million and EPS was $0.92. On an ongoing basis, EPS totaled $0.97, up 23% year-over-year. Cash generated from operations was $50.4 million, up 67% 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 diluted EPS for the third quarter of fiscal 2017 to range from $0.50 to $0.55. Net revenue for the third quarter is expected to range from $510 million to $540 million. For fiscal 2017, Tetra Tech is increasing guidance and now expects ongoing diluted EPS to range from $2.10 to $2.25 and net revenue to range from $2.05 billion to $2.10 billion.
Webcast
Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the second quarter 2017 results through a link posted on the Company’s website at tetratech.com on May 4, 2017 at 8:00 a.m. (PT).
Reconciliation of Revenue and Operating Results
In thousands (except EPS data)
|
| Three Months Ended |
| Six Months Ended |
| ||||||||||||
|
| Apr. 2, |
| Mar. 27, |
| % |
| Apr. 2, |
| Mar. 27, |
| % |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenue |
| $ | 663,781 |
| $ | 627,384 |
| 6 | % | $ | 1,332,632 |
| $ | 1,188,092 |
| 12 | % |
Subcontractor costs |
| (151,827 | ) | (148,619 | ) |
|
| (331,127 | ) | (288,371 | ) |
|
| ||||
Net revenue |
| $ | 511,954 |
| $ | 478,765 |
| 7 | % | $ | 1,001,505 |
| $ | 899,721 |
| 11 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenue |
| $ | 663,781 |
| $ | 627,384 |
| 6 | % | $ | 1,332,632 |
| $ | 1,188,092 |
| 12 | % |
RCM |
| 23 |
| (10,753 | ) |
|
| (8,209 | ) | (31,579 | ) |
|
| ||||
Ongoing revenue |
| $ | 663,804 |
| $ | 616,631 |
| 8 | % | $ | 1,324,423 |
| $ | 1,156,513 |
| 15 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net revenue |
| $ | 511,954 |
| $ | 478,765 |
| 7 | % | $ | 1,001,505 |
| $ | 899,721 |
| 11 | % |
RCM |
| 3,704 |
| (2,975 | ) |
|
| 1,909 |
| (10,165 | ) |
|
| ||||
Ongoing net revenue |
| $ | 515,658 |
| $ | 475,790 |
| 8 | % | $ | 1,003,414 |
| $ | 889,556 |
| 13 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
| $ | 42,956 |
| $ | 16,650 |
| 158 | % | $ | 82,811 |
| $ | 49,581 |
| 67 | % |
Earn-out expense (gain) |
| (7,149 | ) | 1,822 |
|
|
| (7,149 | ) | 2,823 |
|
|
| ||||
RCM |
| 8,466 |
| 386 |
|
|
| 11,508 |
| 5,668 |
|
|
| ||||
Acq. & integration |
| — |
| 15,911 |
|
|
| — |
| 15,911 |
|
|
| ||||
Ongoing operating income |
| $ | 44,273 |
| $ | 34,769 |
| 27 | % | $ | 87,170 |
| $ | 73,983 |
| 18 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
EPS |
| $ | 0.46 |
| $ | 0.06 |
| 667 | % | $ | 0.92 |
| $ | 0.45 |
| 104 | % |
Earn-out expense (gain) |
| (0.08 | ) | 0.02 |
|
|
| (0.08 | ) | 0.03 |
|
|
| ||||
RCM |
| 0.10 |
| — |
|
|
| 0.13 |
| 0.05 |
|
|
| ||||
Acq. & integration |
| — |
| 0.26 |
|
|
| — |
| 0.26 |
|
|
| ||||
Coffey debt prepayment |
| — |
| 0.03 |
|
|
| — |
| 0.03 |
|
|
| ||||
Retroactive R&D tax |
| — |
| — |
|
|
| — |
| (0.03 | ) |
|
| ||||
Ongoing EPS |
| $ | 0.48 |
| $ | 0.37 |
| 30 | % | $ | 0.97 |
| $ | 0.79 |
| 23 | % |
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.
Tetra Tech, Inc.
Condensed Consolidated Balance Sheets
(unaudited - in thousands, except par value)
|
| April 2, |
| October 2, |
| ||
|
|
|
|
|
| ||
Assets |
|
|
|
|
| ||
Current Assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 171,340 |
| $ | 160,459 |
|
Accounts receivable - net |
| 714,471 |
| 714,336 |
| ||
Prepaid expenses and other current assets |
| 50,140 |
| 46,262 |
| ||
Income taxes receivable |
| 7,125 |
| 14,371 |
| ||
Total current assets |
| 943,076 |
| 935,428 |
| ||
|
|
|
|
|
| ||
Property and equipment - net |
| 61,319 |
| 67,827 |
| ||
Investments in and advances to unconsolidated joint ventures |
| 2,239 |
| 2,064 |
| ||
Goodwill |
| 721,762 |
| 717,988 |
| ||
Intangible assets - net |
| 37,313 |
| 48,962 |
| ||
Deferred income taxes |
| 1,091 |
| 630 |
| ||
Other long-term assets |
| 31,569 |
| 27,880 |
| ||
Total Assets |
| $ | 1,798,369 |
| $ | 1,800,779 |
|
|
|
|
|
|
| ||
Liabilities and Equity |
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 143,453 |
| $ | 158,773 |
|
Accrued compensation |
| 117,107 |
| 129,184 |
| ||
Billings in excess of costs on uncompleted contracts |
| 114,341 |
| 88,223 |
| ||
Current portion of long-term debt |
| 18,587 |
| 15,510 |
| ||
Current contingent earn-out liabilities |
| 1,708 |
| 4,296 |
| ||
Other current liabilities |
| 70,062 |
| 85,100 |
| ||
Total current liabilities |
| 465,258 |
| 481,086 |
| ||
|
|
|
|
|
| ||
Deferred income taxes |
| 46,291 |
| 60,348 |
| ||
Long-term debt |
| 326,862 |
| 331,501 |
| ||
Long-term contingent earn-out liabilities |
| 1,684 |
| 4,461 |
| ||
Other long-term liabilities |
| 55,406 |
| 53,980 |
| ||
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
| ||
Equity: |
|
|
|
|
| ||
Preferred stock - authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at April 2, 2017 and October 2, 2016 |
| — |
| — |
| ||
Common stock - authorized, 150,000 shares of $0.01 par value; issued and outstanding, 57,203 and 57,042 shares at April 2, 2017 and October 2, 2016, respectively |
| 572 |
| 570 |
| ||
Additional paid-in capital |
| 256,063 |
| 260,340 |
| ||
Accumulated other comprehensive loss |
| (133,419 | ) | (128,008 | ) | ||
Retained earnings |
| 779,481 |
| 736,357 |
| ||
Tetra Tech stockholders’ equity |
| 902,697 |
| 869,259 |
| ||
Noncontrolling interests |
| 171 |
| 144 |
| ||
Total equity |
| 902,868 |
| 869,403 |
| ||
Total Liabilities and Equity |
| $ | 1,798,369 |
| $ | 1,800,779 |
|
Tetra Tech, Inc.
Condensed Consolidated Statements of Income
(unaudited - in thousands, except per share data)
|
| Three Months Ended |
| Six Months Ended |
| ||||||||
|
| April 2, |
| March 27, |
| April 2, |
| March 27, |
| ||||
|
| 2017 |
| 2016 |
| 2017 |
| 2016 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Revenue |
| $ | 663,781 |
| $ | 627,384 |
| $ | 1,332,632 |
| $ | 1,188,092 |
|
Subcontractor costs |
| (151,827 | ) | (148,619 | ) | (331,127 | ) | (288,371 | ) | ||||
Other costs of revenue |
| (430,952 | ) | (403,976 | ) | (839,141 | ) | (751,772 | ) | ||||
Gross profit |
| 81,002 |
| 74,789 |
| 162,364 |
| 147,949 |
| ||||
Selling, general and administrative expenses |
| (45,195 | ) | (40,406 | ) | (86,702 | ) | (79,634 | ) | ||||
Acquisition and integration expenses |
| — |
| (15,911 | ) | — |
| (15,911 | ) | ||||
Contingent consideration - fair value adjustments |
| 7,149 |
| (1,822 | ) | 7,149 |
| (2,823 | ) | ||||
Operating income |
| 42,956 |
| 16,650 |
| 82,811 |
| 49,581 |
| ||||
Interest expense, net |
| (3,099 | ) | (4,251 | ) | (6,007 | ) | (5,911 | ) | ||||
Income before income tax expense |
| 39,857 |
| 12,399 |
| 76,804 |
| 43,670 |
| ||||
Income tax expense |
| (12,990 | ) | (8,661 | ) | (23,348 | ) | (16,692 | ) | ||||
Net income including noncontrolling interests |
| 26,867 |
| 3,738 |
| 53,456 |
| 26,978 |
| ||||
Net (income) loss from noncontrolling interests |
| (5 | ) | 6 |
| (32 | ) | 5 |
| ||||
Net income attributable to Tetra Tech |
| $ | 26,862 |
| $ | 3,744 |
| $ | 53,424 |
| $ | 26,983 |
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings per share attributable to Tetra Tech: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| $ | 0.47 |
| $ | 0.06 |
| $ | 0.93 |
| $ | 0.46 |
|
Diluted |
| $ | 0.46 |
| $ | 0.06 |
| $ | 0.92 |
| $ | 0.45 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 57,270 |
| 58,451 |
| 57,171 |
| 58,819 |
| ||||
Diluted |
| 58,270 |
| 59,131 |
| 58,194 |
| 59,527 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash dividends paid per share |
| $ | 0.09 |
| $ | 0.08 |
| $ | 0.18 |
| $ | 0.16 |
|
Tetra Tech, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited - in thousands)
|
| Six Months Ended |
| ||||
|
| April 2, |
| March 27, |
| ||
|
| 2017 |
| 2016 |
| ||
|
|
|
|
|
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net income including noncontrolling interests |
| $ | 53,456 |
| $ | 26,978 |
|
|
|
|
|
|
| ||
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
| 23,234 |
| 21,410 |
| ||
Equity in income of unconsolidated joint ventures |
| (2,489 | ) | (896 | ) | ||
Distributions of earnings from unconsolidated joint ventures |
| 2,301 |
| 1,334 |
| ||
Stock-based compensation |
| 6,610 |
| 6,147 |
| ||
Excess tax benefits from stock-based compensation |
| — |
| (211 | ) | ||
Deferred income taxes |
| 19,851 |
| 7,109 |
| ||
Provision for doubtful accounts |
| (2,028 | ) | 8,047 |
| ||
Fair value adjustments to contingent consideration |
| (7,149 | ) | 2,823 |
| ||
Gain on disposal of property and equipment |
| (266 | ) | (359 | ) | ||
Lease termination costs and related asset impairment |
| — |
| 2,946 |
| ||
|
|
|
|
|
| ||
Changes in operating assets and liabilities, net of effects of business acquisitions: |
|
|
|
|
| ||
Accounts receivable |
| 2,631 |
| 35,898 |
| ||
Prepaid expenses and other assets |
| (7,587 | ) | (8,694 | ) | ||
Accounts payable |
| (15,587 | ) | (27,176 | ) | ||
Accrued compensation |
| (12,888 | ) | (23,038 | ) | ||
Billings in excess of costs on uncompleted contracts |
| 25,139 |
| (9,646 | ) | ||
Other liabilities |
| (5,021 | ) | 3,330 |
| ||
Income taxes receivable/payable |
| (29,843 | ) | (15,760 | ) | ||
Net cash provided by operating activities |
| 50,364 |
| 30,242 |
| ||
|
|
|
|
|
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Capital expenditures |
| (3,896 | ) | (6,007 | ) | ||
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 |
| 303 |
| 969 |
| ||
Investments in unconsolidated joint ventures |
| — |
| (613 | ) | ||
Net cash used in investing activities |
| (11,632 | ) | (90,291 | ) | ||
|
|
|
|
|
| ||
Cash flows from financing activities: |
|
|
|
|
| ||
Payments on long-term debt |
| (137,849 | ) | (76,717 | ) | ||
Proceeds from borrowings |
| 133,596 |
| 170,000 |
| ||
Payments of earn-out liabilities |
| — |
| (1,001 | ) | ||
Debt pre-payment costs |
| — |
| (1,935 | ) | ||
Excess tax benefits from stock-based compensation |
| — |
| 211 |
| ||
Repurchases of common stock |
| (20,000 | ) | (50,000 | ) | ||
Dividends paid |
| (10,301 | ) | (9,382 | ) | ||
Net proceeds from issuance of common stock |
| 7,661 |
| 6,235 |
| ||
Net cash (used in) provided by financing activities |
| (26,893 | ) | 37,411 |
| ||
|
|
|
|
|
| ||
Effect of foreign exchange rate changes on cash |
| (958 | ) | 979 |
| ||
|
|
|
|
|
| ||
Net increase (decrease) in cash and cash equivalents |
| 10,881 |
| (21,659 | ) | ||
Cash and cash equivalents at beginning of period |
| 160,459 |
| 135,326 |
| ||
|
|
|
|
|
| ||
Cash and cash equivalents at end of period |
| $ | 171,340 |
| $ | 113,667 |
|
|
|
|
|
|
| ||
Supplemental information: |
|
|
|
|
| ||
Cash paid during the period for: |
|
|
|
|
| ||
Interest |
| $ | 5,970 |
| $ | 7,120 |
|
Income taxes, net of refunds received of $0.6 million and $2.1 million |
| $ | 32,995 |
| $ | 19,855 |
|
Tetra Tech, Inc.
Regulation G Information
April 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 |
|
Consolidated (as reported) |
|
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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 |
|
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 | ) |
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 |
|
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WEI Segment |
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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 |
|
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 | ) |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
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 | ) |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
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 | ) |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
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 | ) |
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 | ) |
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 |
|
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 |
|
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 |
|
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 |
|
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 |
|
Contingent Consideration |
| (58,694 | ) | (3,113 | ) | 1,001 |
| 1,822 |
| 2,823 |
| — |
| 2,823 |
| — |
| 2,823 |
| — |
| (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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Segment |
| 42,193 |
| 6,813 |
| 5,089 |
| 201 |
| 5,291 |
| 3,840 |
| 9,131 |
| 1,968 |
| 11,098 |
| 2,887 |
| 7,970 |
| 10,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
(1) Includes amortization of deferred financing fee
(2) Varies slightly from the Statements of Cash Flows, which includes amortization of deferred financing fee