Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the third quarter ended July 1, 2012.
Third Quarter Results
Revenue in the quarter was $684.7 million compared to $673.8 million in the third quarter last year. Revenue, net of subcontractor costs 1, was $516.9 million, up 7.6% compared to $480.5 million in the third quarter last year. Operating income was $46.3 million, up 17.4% compared to $39.4 million in the third quarter last year. Diluted earnings per share (EPS) were $0.45, up 18.4% compared to $0.38 in the third quarter last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA 2), were $59.1 million, up 12.6% compared to $52.5 million in the third quarter last year. Backlog was a record high $2.06 billion, up 9.9% compared to $1.88 billion at the end of the third quarter last year. Cash generated from operations was $56.8 million compared to $55.8 million in the third quarter last year.
Nine-Month ResultsRevenue for the nine-month period was $1.99 billion compared to $1.90 billion in the year-ago period. Revenue, net of subcontractor costs, was $1.49 billion, up 12.9% compared to $1.32 billion in the year-ago period. Operating income was $117.9 million, up 14.5% compared to $103.0 million in the year-ago period. Diluted EPS were $1.16, up 14.9% compared to $1.01 (or up 17.2% compared to $0.99 excluding a prior year tax benefit) in the year-ago period. EBITDA were $159.4 million, up 12.1% compared to $142.2 million in the year-ago period. Cash generated from operations was $128.2 million, up 30.3% compared to $98.4 million in year-ago period. Tetra Tech’s Chairman and CEO, Dan Batrack highlighted, “Our growth this quarter was driven by strong demand from our U.S. commercial and international clients, which now comprise 57% of our business. This client mix continues to improve our operating margin. The addition of midstream pipeline planning and engineering services this quarter further strengthens our U.S. commercial business. As a result of our performance, we are increasing our EPS guidance for the year.”