Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the fiscal 2014 first quarter ended December 29, 2013.
First Quarter Results
Revenue in the quarter was $645.8 million compared to $658.5 million in the first quarter last year. Revenue, net of subcontractor costs 1, was $483.0 million compared to $497.2 million in the first quarter last year. Operating income was $43.7 million, up 4.6% compared to $41.8 million in the first quarter last year. Diluted earnings per share (EPS) were $0.42, up 2.4% compared to $0.41 in the first quarter last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA 2), were $59.4 million, up 9.9% compared to $54.1 million in the first quarter last year. Backlog was $1.9 billion for the first quarter, up slightly from the prior quarter. Cash generated from operations was $41.7 million, up 135.0% compared to $17.8 million in the first quarter last year.
The Board has authorized the amendment of the Company’s stock repurchase program to revise the pricing grids and to commit $30 million of the $100 million authorized buyback to be expended prior to the end of Company’s fiscal year. The $30 million committed amount will offset the Company’s share dilution from equity awards. It is the Board’s intent to re-authorize a repurchase program which offsets annual dilution.Tetra Tech’s Chairman and CEO, Dan Batrack commented, “We had a solid first quarter, in line with our expectations. Work for oil & gas clients, which grew organically over 20%, continues to be our strongest market. In addition, the recently passed U.S. federal spending bill provides more certainty for our government business outlook. Our focus on water and the environment continues to differentiate us in the marketplace. Cash generation has consistently exceeded net income, enabling us to commit $30 million this year to offset dilution from equity awards without impacting the Company’s M&A strategy.”