Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the fiscal 2013 first quarter ended December 30, 2012.
First Quarter Results
Revenue in the quarter was $658.5 million compared to $682.6 million in the first quarter last year. Revenue, net of subcontractor costs 1, was $497.2 million compared to $492.1 million in the first quarter last year. Operating income was $41.8 million, up 15.8% compared to $36.1 million in the first quarter last year. Diluted earnings per share (EPS) were $0.41, up 13.9% compared to $0.36 in the first quarter last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA 2), were $54.1 million, up 5.9% compared to $51.1 million in the first quarter last year. Backlog was $1.9 billion, compared to $1.9 billion at the end of the first quarter last year. Cash generated from operations was $17.8 million in the quarter.
Tetra Tech’s Chairman and CEO, Dan Batrack commented, “We continued to shift our portfolio towards the higher demand international and U.S. commercial markets, which led to improved margin this past quarter. In addition, we closed our previously announced acquisition of Parkland, which significantly expands our work for oil & gas customers to approximately 10% of our business. With our growth in the international and U.S. commercial markets, we are increasing both our EPS and net revenue guidance.”1 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. 2 EBITDA is a non-GAAP financial measure. The Company believes EBITDA is a useful representation of operating performance because of significant amounts of acquisition-related non-cash amortization expense. A table reconciling net income attributable to Tetra Tech to EBITDA can be found at the end of this release. 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.