Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the second quarter ended March 30, 2014 and the initiation of a quarterly dividend.
Second Quarter Results
Revenue in the quarter was $586.3 million compared to $642.0 million in the second quarter last year. Revenue, net of subcontractor costs 1, was $456.0 million compared to $520.9 million in the second quarter last year. Operating income was $46.2 million, up 22.6% compared to $37.7 million in the second quarter last year. Diluted earnings per share (EPS) were $0.48, up 26.3% compared to $0.38 in the second quarter last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA 2), were $59.3 million, up 9.4% compared to $54.2 million in the second quarter last year. Backlog was $1.8 billion at the end of the second quarter.
Quarterly Dividend InitiationOn April 28, 2014, Tetra Tech’s Board of Directors authorized a quarterly cash dividend and declared an initial quarterly dividend of $0.07 per share payable on June 4, 2014 to stockholders of record as of May 16, 2014. Commenting on the dividend declaration, Tetra Tech’s Chairman and CEO Dan Batrack said, “Our history of consistent cash flow generation has enabled the Board to approve our first quarterly dividend. On an annual basis, this represents approximately 15% of our free cash flow 3, which currently correlates to a 1% yield. Combined with our current share repurchase program, we anticipate returning a minimum of 30% of fiscal 2014 annualized free cash flow to stockholders.” Six-Month Results Revenue for the six-month period was $1.2 billion compared to $1.3 billion in the year-ago period. Revenue, net of subcontractor costs, was $939.0 million compared to $1.0 billion in the year-ago period. Operating income was $89.9 million, up 13.1% compared to $79.5 million in the year-ago period. Diluted EPS were $0.90, up 15.4% compared to $0.78 in the year-ago period. EBITDA were $118.7 million, up 9.6% compared to $108.3 million in the year-ago period. Cash generated from operations was $56.2 million compared to $62.0 million in the year-ago period.