EXHIBIT 99.1
 | NEWS RELEASE
April 28, 2021 |
Tetra Tech Reports Strong Second Quarter 2021 Results
| | · | Revenue $755 million and Net Revenue $600 million |
| | · | Operating Margin up 114 basis points Y/Y |
| | · | EPS $0.83, up 26% Y/Y |
| | · | Cash from Operations increased to $124 million, up 23% Y/Y |
| | · | Increased quarterly dividend by 18% to $0.20 |
Pasadena, California. Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services, today announced results for the second quarter ended March 28, 2021.
Second Quarter Results
Revenue in the second quarter totaled $755 million and revenue, net of subcontractor costs (net revenue)1, was $600 million. Operating income was $61 million, up 28% year-over-year, driven by a 114 basis point increase in operating margin. Earnings per share (“EPS”) was $0.83, up 26% year-over-year. Cash generated from operations was a record $124 million, up 23% year-over-year. Backlog at the end of the quarter was $3.15 billion, up 5% year-over-year.
Quarterly Dividend and Share Repurchase Program
On April 26, 2021, Tetra Tech’s Board of Directors declared a $0.20 per share quarterly dividend, an 18% increase over the prior year, payable on May 28, 2021 to stockholders of record as of May 12, 2021; the seventh consecutive double-digit annual increase. In the second quarter, Tetra Tech repurchased $15 million of common stock. Additionally, as of March 28, 2021, the Company had $178 million remaining under the approved share repurchase program.
Chairman and CEO Comments
Tetra Tech’s Chairman and CEO, Dan Batrack, commented, “Tetra Tech continued to build on its strong start to fiscal year 2021, generating record second quarter revenue and operating income on higher margins in both our government and commercial businesses. We achieved year-over-year double digit revenue growth for our U.S. state & local and U.S. federal water and environmental services by leveraging our Tetra Tech Delta suite of advanced data analytics and digital water technologies. We continued to invest in these strategic growth areas by adding Coanda Research & Development and IBRA-RMAC, leaders in computational fluid dynamics and digital water transformation. Given our results to date and outlook, we are increasing guidance for both net revenue and EPS for fiscal 2021.”
1 Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to Reconciliation of GAAP and non-GAAP Item.
Six-Month Results
Revenue for the six-month period was $1.52 billion and net revenue was $1.20 billion. Operating income was $127 million, up 15% compared to the same period in fiscal 2020, and EPS increased 19% to $1.79. Cash flow from operations was $157 million, up 89% 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 EPS for the third quarter of fiscal 2021 to range from $0.85 to $0.90 and net revenue to range from $600 million to $650 million. For fiscal 2021, Tetra Tech is increasing its guidance outlook and now expects EPS to range from $3.60 to $3.70 and net revenue to range from $2.45 billion to $2.55 billion.2
Webcast
Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the second quarter fiscal 2021 results through a link posted on the Company’s website at tetratech.com on April 29, 2021 at 8:00 a.m. (PT).
Reconciliation of GAAP and Non-GAAP Item
In thousands
| | | Three Months Ended | | | Six Months Ended | |
| | | March 28,
2021 | | | March 29,
2020 | | | March 28,
2021 | | | March 29,
2020 | |
| Revenue | | $ | 754,764 | | | $ | 734,133 | | | $ | 1,519,868 | | | $ | 1,531,756 | |
| Subcontractor Costs | | | (154,939 | ) | | | (149,673 | ) | | | (314,873 | ) | | | (333,274 | ) |
| Net Revenue | | $ | 599,825 | | | $ | 584,460 | | | $ | 1,204,995 | | | $ | 1,198,482 | |
2 Reconciliation of the net revenue guidance to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict the magnitude and timing of all the components required to provide such reconciliation with sufficient precision.
About Tetra Tech
Tetra Tech is a leading provider of high-end consulting and engineering services for projects worldwide. With 20,000 associates working together, Tetra Tech provides clear solutions to complex problems in water, environment, sustainable infrastructure, renewable energy, and international development. We are Leading with Science® to provide sustainable and resilient solutions for our clients. 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 release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan" and "believe," among others, generally identify forward-looking statements. These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release, including but not limited to: the impact of the COVID-19 pandemic; continuing worldwide political and economic uncertainties; the U.S. Administration’s potential changes to fiscal 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; the ability to impede a business combination based on Delaware law and charter documents; and other risks and uncertainties as may be described in Tetra Tech’s periodic filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of Tetra Tech’s Annual Report on Form 10-K for the fiscal year ended September 27, 2020, and Tetra Tech’s Quarterly Reports on Form 10-Q for fiscal year 2021, as well as in Tetra Tech’s other filings with the SEC. Readers should not place undue reliance on forward-looking statements since such information speaks only as of the date of this release. Tetra Tech does not intend to update forward-looking statements and expressly disclaims any obligation to do so.
Non-GAAP Financial Measures
To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended. We provide these non-GAAP financial measures because we believe they provide a valuable perspective on our financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, GAAP measures. In addition, other companies may define non-GAAP measures differently which limits the ability of investors to compare non-GAAP measures of Tetra Tech to those used by our peer companies. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in this release.
Tetra Tech, Inc.
Consolidated Balance Sheets
(unaudited - in thousands, except par value)
| | | March 28,
2021 | | | September 27,
2020 | |
| Assets | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 225,330 | | | $ | 157,515 | |
| Accounts receivable, net | | | 629,186 | | | | 649,035 | |
| Contract assets | | | 95,079 | | | | 92,632 | |
| Prepaid expenses and other current assets | | | 87,400 | | | | 81,094 | |
| Income taxes receivable | | | 27,116 | | | | 19,509 | |
| Total current assets | | | 1,064,111 | | | | 999,785 | |
| | | | | | | | | |
| Property and equipment, net | | | 37,423 | | | | 35,507 | |
| Right-of-use assets, operating leases | | | 222,922 | | | | 239,396 | |
| Investments in unconsolidated joint ventures | | | 7,700 | | | | 7,332 | |
| Goodwill | | | 1,029,573 | | | | 993,498 | |
| Intangible assets, net | | | 8,923 | | | | 13,943 | |
| Deferred tax assets | | | 34,740 | | | | 32,052 | |
| Other long-term assets | | | 49,670 | | | | 57,045 | |
| Total assets | | $ | 2,455,062 | | | $ | 2,378,558 | |
| | | | | | | | | |
| Liabilities and Equity | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 124,260 | | | $ | 111,804 | |
| Accrued compensation | | | 179,025 | | | | 199,801 | |
| Contract liabilities | | | 185,602 | | | | 171,905 | |
| Short-term lease liabilities, operating leases | | | 68,941 | | | | 69,650 | |
| Current portion of long-term debt and other short-term borrowings | | | 28,885 | | | | 49,264 | |
| Current contingent earn-out liabilities | | | 17,492 | | | | 16,142 | |
| Other current liabilities | | | 192,446 | | | | 174,890 | |
| Total current liabilities | | | 796,651 | | | | 793,456 | |
| | | | | | | | | |
| Deferred tax liabilities | | | 18,152 | | | | 16,316 | |
| Long-term debt | | | 238,339 | | | | 242,395 | |
| Long-term lease liabilities, operating leases | | | 179,645 | | | | 191,955 | |
| Long-term contingent earn-out liabilities | | | 11,166 | | | | 16,475 | |
| Other long-term liabilities | | | 63,830 | | | | 80,588 | |
| | | | | | | | | |
| Equity: | | | | | | | | |
| Preferred stock - authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at March 28, 2021 and September 27, 2020 | | | - | | | | - | |
| Common stock - authorized, 150,000 shares of $0.01 par value; issued and outstanding, 54,158 and 53,797 shares at March 28, 2021 and September 27, 2020, respectively | | | 542 | | | | 538 | |
| Accumulated other comprehensive loss | | | (115,056 | ) | | | (161,786 | ) |
| Retained earnings | | | 1,261,712 | | | | 1,198,567 | |
| Tetra Tech stockholders' equity | | | 1,147,198 | | | | 1,037,319 | |
| Noncontrolling interests | | | 81 | | | | 54 | |
| Total stockholders' equity | | | 1,147,279 | | | | 1,037,373 | |
| Total liabilities and stockholders' equity | | $ | 2,455,062 | | | $ | 2,378,558 | |
Tetra Tech, Inc.
Consolidated Statements of Income
(unaudited - in thousands, except per share data)
| | | Three Months Ended | | | Six Months Ended | |
| | | March 28, | | | March 29, | | | March 28, | | | March 29, | |
| | | 2021 | | | 2020 | | | 2021 | | | 2020 | |
| Revenue | | $ | 754,764 | | | $ | 734,133 | | | $ | 1,519,868 | | | $ | 1,531,756 | |
| Subcontractor costs | | | (154,939 | ) | | | (149,673 | ) | | | (314,873 | ) | | | (333,274 | ) |
| Other costs of revenue | | | (487,341 | ) | | | (487,460 | ) | | | (976,201 | ) | | | (991,745 | ) |
| Gross profit | | | 112,484 | | | | 97,000 | | | | 228,794 | | | | 206,737 | |
| Selling, general and administrative expenses | | | (51,907 | ) | | | (51,041 | ) | | | (101,928 | ) | | | (97,476 | ) |
| Contingent consideration - fair value adjustments | | | 230 | | | | 1,571 | | | | 193 | | | | 1,571 | |
| Income from operations | | | 60,807 | | | | 47,530 | | | | 127,059 | | | | 110,832 | |
| Interest expense | | | (2,823 | ) | | | (3,501 | ) | | | (5,849 | ) | | | (6,849 | ) |
| Income before income tax expense | | | 57,984 | | | | 44,029 | | | | 121,210 | | | | 103,983 | |
| Income tax expense | | | (12,456 | ) | | | (7,616 | ) | | | (23,234 | ) | | | (20,253 | ) |
| Net income | | | 45,528 | | | | 36,413 | | | | 97,976 | | | | 83,730 | |
| Net income attributable to noncontrolling interests | | | (11 | ) | | | (16 | ) | | | (23 | ) | | | (23 | ) |
| Net income attributable to Tetra Tech | | $ | 45,517 | | | $ | 36,397 | | | | 97,953 | | | $ | 83,707 | |
| | | | | | | | | | | | | | | | | |
| Earnings per share attributable to Tetra Tech: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.84 | | | $ | 0.67 | | | $ | 1.81 | | | $ | 1.53 | |
| Diluted | | $ | 0.83 | | | $ | 0.66 | | | $ | 1.79 | | | $ | 1.51 | |
| | | | | | | | | | | | | | | | | |
| Weighted-average common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 54,187 | | | | 54,699 | | | | 54,085 | | | | 54,541 | |
| Diluted | | | 54,736 | | | | 55,463 | | | | 54,715 | | | | 55,380 | |
Tetra Tech, Inc.
Consolidated Statements of Cash Flows
(unaudited - in thousands)
| | | Six Months Ended | |
| | | March 28, | | | March 29, | |
| | | 2021 | | | 2020 | |
| Cash flows from operating activities: | | | | | | | | |
| Net income | | $ | 97,976 | | | $ | 83,730 | |
| | | | | | | | | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 11,524 | | | | 12,809 | |
| Equity in income of unconsolidated joint ventures | | | (1,872 | ) | | | (3,333 | ) |
| Distributions of earnings from unconsolidated joint ventures | | | 1,622 | | | | 2,467 | |
| Amortization of stock-based awards | | | 10,566 | | | | 9,437 | |
| Deferred income taxes | | | 350 | | | | 3,153 | |
| Provision for losses from uncollectible receivables | | | (1,538 | ) | | | 539 | |
| Fair value adjustments to contingent consideration | | | (193 | ) | | | (1,571 | ) |
| Gain on sale of property and equipment | | | (66 | ) | | | (3,523 | ) |
| | | | | | | | | |
| Changes in operating assets and liabilities, net of effects of business acquisitions: | | | | | | | | |
| Accounts receivable and contract assets | | | 35,415 | | | | 104,388 | |
| Prepaid expenses and other assets | | | 18,091 | | | | 5,317 | |
| Accounts payable | | | 12,063 | | | | (89,630 | ) |
| Accrued compensation | | | (20,524 | ) | | | (44,690 | ) |
| Contract liabilities | | | 9,957 | | | | 24,130 | |
| Other liabilities | | | (5,528 | ) | | | (14,129 | ) |
| Income taxes receivable/payable | | | (10,419 | ) | | | (5,895 | ) |
| Net cash provided by operating activities | | | 157,424 | | | | 83,199 | |
| | | | | | | | | |
| Cash flows from investing activities: | | | | | | | | |
| Payments for business acquisitions, net of cash acquired | | | (3,065 | ) | | | (27,739 | ) |
| Capital expenditures | | | (4,297 | ) | | | (5,876 | ) |
| Proceeds from sale of property and equipment | | | 79 | | | | 6,316 | |
| Net cash used in investing activities | | | (7,283 | ) | | | (27,299 | ) |
| | | | | | | | | |
| Cash flows from financing activities: | | | | | | | | |
| Proceeds from borrowings | | | 141,628 | | | | 243,364 | |
| Repayments on long-term debt | | | (146,250 | ) | | | (174,730 | ) |
| Repurchases of common stock | | | (30,000 | ) | | | (81,660 | ) |
| Taxes paid on vested restricted stock | | | (17,488 | ) | | | (10,857 | ) |
| Stock options exercised | | | 9,771 | | | | 7,927 | |
| Bank overdrafts | | | (21,121 | ) | | | 2,737 | |
| Dividends paid | | | (18,410 | ) | | | (16,414 | ) |
| Payments of contingent earn-out liabilities | | | (8,037 | ) | | | (9,624 | ) |
| Principal payments on finance leases | | | (1,222 | ) | | | - | |
| Net cash used in financing activities | | | (91,129 | ) | | | (39,257 | ) |
| | | | | | | | | |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | | | 8,803 | | | | (2,409 | ) |
| | | | | | | | | |
| Net increase in cash, cash equivalents and restricted cash | | | 67,815 | | | | 14,234 | |
| Cash, cash equivalents and restricted cash at beginning of period | | | 157,515 | | | | 120,901 | |
| Cash, cash equivalents and restricted cash at end of period | | $ | 225,330 | | | $ | 135,135 | |
| | | | | | | | | |
| Supplemental Information: | | | | | | | | |
| Cash paid during the period for: | | | | | | | | |
| Interest | | $ | 5,412 | | | $ | 6,510 | |
| Income taxes, net of refunds received of $1.1 million and $0.5 million | | $ | 30,832 | | | $ | 23,437 | |
| | | | | | | | | |
| Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | |
| Cash and cash equivalents | | $ | 225,330 | | | $ | 134,981 | |
| Restricted cash | | | - | | | | 154 | |
| Total cash, cash equivalents and restricted cash | | $ | 225,330 | | | $ | 135,135 | |
Tetra Tech, Inc.
Regulation G Information
March 28, 2021
Reconciliation of Revenue to Revenue, Net of Subcontractor Costs ("Net Revenue")
(in millions)
| | | | | | | | | 2020 | | | 2021 | |
| | | 2018 | | | 2019 | | | 1st Qtr | | | 2nd Qtr | | | 6 mos | | | 3rd Qtr | | | 9 mos | | | 4th Qtr | | | Total | | | 1st Qtr | | | 2nd Qtr | | | 6 mos | |
| Consolidated | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue (As Reported) | | | 2,964.1 | | | | 3,107.3 | | | | 797.6 | | | | 734.1 | | | | 1,531.7 | | | | 709.8 | | | | 2,241.5 | | | | 753.4 | | | | 2,994.9 | | | | 765.1 | | | | 754.8 | | | | 1,519.9 | |
| RCM / Non-Cash Claims | | | (3.6 | ) | | | 15.2 | | | | (0.1 | ) | | | - | | | | (0.1 | ) | | | (0.1 | ) | | | (0.2 | ) | | | - | | | | (0.2 | ) | | | - | | | | (0.5 | ) | | | (0.5 | ) |
| Adjusted Revenue | | | 2,960.5 | | | | 3,122.5 | | | | 797.5 | | | | 734.1 | | | | 1,531.6 | | | | 709.7 | | | | 2,241.3 | | | | 753.4 | | | | 2,994.7 | | | | 765.1 | | | | 754.3 | | | | 1,519.4 | |
| Adjusted Subcontractor Costs | | | (751.8 | ) | | | (716.4 | ) | | | (183.5 | ) | | | (149.6 | ) | | | (333.1 | ) | | | (149.4 | ) | | | (482.7 | ) | | | (163.6 | ) | | | (646.1 | ) | | | (159.9 | ) | | | (155.0 | ) | | | (314.9 | ) |
| Adjusted Net Revenue | | | 2,208.7 | | | | 2,406.1 | | | | 614.0 | | | | 584.5 | | | | 1,198.5 | | | | 560.3 | | | | 1,758.6 | | | | 589.8 | | | | 2,348.6 | | | | 605.2 | | | | 599.3 | | | | 1,204.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| GSG Segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | 1,694.9 | | | | 1,820.7 | | | | 457.4 | | | | 436.9 | | | | 894.3 | | | | 432.2 | | | | 1,326.5 | | | | 452.4 | | | | 1,778.9 | | | | 468.7 | | | | 473.8 | | | | 942.5 | |
| Subcontractor Costs | | | (482.6 | ) | | | (491.4 | ) | | | (127.7 | ) | | | (115.9 | ) | | | (243.6 | ) | | | (112.9 | ) | | | (356.5 | ) | | | (122.3 | ) | | | (478.8 | ) | | | (123.8 | ) | | | (126.7 | ) | | | (250.5 | ) |
| Adjusted Net Revenue | | | 1,212.3 | | | | 1,329.3 | | | | 329.7 | | | | 321.0 | | | | 650.7 | | | | 319.3 | | | | 970.0 | | | | 330.1 | | | | 1,300.1 | | | | 344.9 | | | | 347.1 | | | | 692.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| CIG Segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | 1,323.1 | | | | 1,342.5 | | | | 351.2 | | | | 308.4 | | | | 659.6 | | | | 291.0 | | | | 950.6 | | | | 315.5 | | | | 1,266.1 | | | | 311.1 | | | | 293.1 | | | | 604.2 | |
| Non-Cash Claims | | | 10.6 | | | | 13.7 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Adjusted Revenue | | | 1,333.7 | | | | 1,356.2 | | | | 351.2 | | | | 308.4 | | | | 659.6 | | | | 291.0 | | | | 950.6 | | | | 315.5 | | | | 1,266.1 | | | | 311.1 | | | | 293.1 | | | | 604.2 | |
| Subcontractor Costs | | | (337.4 | ) | | | (279.5 | ) | | | (66.9 | ) | | | (44.9 | ) | | | (111.8 | ) | | | (50.0 | ) | | | (161.8 | ) | | | (55.7 | ) | | | (217.5 | ) | | | (50.8 | ) | | | (40.9 | ) | | | (91.7 | ) |
| Adjusted Net Revenue | | | 996.3 | | | | 1,076.7 | | | | 284.3 | | | | 263.5 | | | | 547.8 | | | | 241.0 | | | | 788.8 | | | | 259.8 | | | | 1,048.6 | | | | 260.3 | | | | 252.2 | | | | 512.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| RCM Segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | 14.2 | | | | (1.5 | ) | | | 0.1 | | | | - | | | | 0.1 | | | | 0.1 | | | | 0.2 | | | | - | | | | 0.2 | | | | - | | | | 0.5 | | | | 0.5 | |
| Subcontractor Costs | | | (11.6 | ) | | | (1.3 | ) | | | (0.1 | ) | | | - | | | | (0.1 | ) | | | (0.1 | ) | | | (0.2 | ) | | | - | | | | (0.2 | ) | | | - | | | | 0.1 | | | | 0.1 | |
| Net Revenue | | | 2.6 | | | | (2.8 | ) | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 0.6 | | | | 0.6 | |
Reconciliation of Net Income Attributable to Tetra Tech to EBITDA
(in thousands)
| | | | | | | | | 2020 | | | 2021 | |
| | | 2018 | | | 2019 | | | 1st Qtr | | | 2nd Qtr | | | 6 mos | | | 3rd Qtr | | | 9 mos | | | 4th Qtr | | | Total | | | 1st Qtr | | | 2nd Qtr | | | 6 mos | |
| Net Income Attributable to Tetra Tech | | | 136,883 | | | | 158,668 | | | | 47,310 | | | | 36,398 | | | | 83,708 | | | | 45,497 | | | | 129,205 | | | | 44,654 | | | | 173,859 | | | | 52,436 | | | | 45,517 | | | | 97,953 | |
| Interest Expense1 | | | 15,524 | | | | 13,626 | | | | 3,348 | | | | 3,500 | | | | 6,848 | | | | 3,564 | | | | 10,412 | | | | 2,688 | | | | 13,100 | | | | 3,026 | | | | 2,823 | | | | 5,849 | |
| Depreciation2 | | | 19,592 | | | | 17,285 | | | | 3,293 | | | | 3,133 | | | | 6,426 | | | | 3,686 | | | | 10,112 | | | | 2,905 | | | | 13,017 | | | | 2,882 | | | | 3,073 | | | | 5,955 | |
| Amortization2 | | | 18,249 | | | | 11,559 | | | | 2,942 | | | | 3,442 | | | | 6,384 | | | | 2,570 | | | | 8,954 | | | | 2,640 | | | | 11,594 | | | | 3,356 | | | | 2,213 | | | | 5,569 | |
| Contingent Consideration | | | 5,753 | | | | 3,085 | | | | - | | | | (971 | ) | | | (971 | ) | | | 550 | | | | (421 | ) | | | (12,950 | ) | | | (13,371 | ) | | | - | | | | - | | | | - | |
| Goodwill Impairment | | | - | | | | 7,755 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 15,800 | | | | 15,800 | | | | - | | | | - | | | | - | |
| Income Tax Expense | | | 37,605 | | | | 16,375 | | | | 12,637 | | | | 7,615 | | | | 20,252 | | | | 14,458 | | | | 34,710 | | | | 19,391 | | | | 54,101 | | | | 10,778 | | | | 12,456 | | | | 23,234 | |
| EBITDA | | | 233,606 | | | | 228,353 | | | | 69,530 | | | | 53,117 | | | | 122,647 | | | | 70,325 | | | | 192,972 | | | | 75,128 | | | | 268,100 | | | | 72,478 | | | | 66,082 | | | | 138,560 | |
| Acquisition & Integration Expenses | | | - | | | | 10,351 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Non-Core Dispositions | | | 3,434 | | | | 10,945 | | | | (800 | ) | | | (2,184 | ) | | | (2,984 | ) | | | (4,493 | ) | | | (7,477 | ) | | | (1,047 | ) | | | (8,524 | ) | | | - | | | | - | | | | - | |
| RCM / Non-Cash Claims | | | 16,836 | | | | 19,526 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| COVID-19 | | | - | | | | - | | | | - | | | | 8,233 | | | | 8,233 | | | | - | | | | 8,233 | | | | | | | | 8,233 | | | | - | | | | - | | | | - | |
| Adjusted EBITDA | | | 253,876 | | | | 269,175 | | | | 68,730 | | | | 59,166 | | | | 127,896 | | | | 65,832 | | | | 193,728 | | | | 74,081 | | | | 267,809 | | | | 72,478 | | | | 66,082 | | | | 138,560 | |
1 Includes amortization of deferred financing fee
2 Varies slightly from the Statements of Cash Flows, which includes amortization of deferred financing fee
