Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the third quarter ended June 29, 2014, the declaration of a quarterly dividend and changes to the share buyback program.
Third Quarter Results
Revenue in the quarter was $629.5 million compared to $614.8 million in the third quarter last year. Revenue, net of subcontractor costs 1, was $458.8 million compared to $475.1 million in the third quarter last year. Operating income was $39.2 million compared to a loss of $99.9 million in the third quarter last year. The results in fiscal 2013 included significant charges associated with fixed-price construction projects in the Remediation and Construction Management (RCM) segment, and a goodwill impairment. Diluted earnings per share (EPS) were $0.41 compared to a diluted loss per share of $1.21 in the third quarter last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA 2), were $51.6 million compared to a loss of $82.5 million in the third quarter last year. Backlog was $1.93 billion compared to $1.90 billion at the end of the third quarter last year and $1.82 billion at the end of second quarter fiscal 2014. Cash generated from operations was $58.1 million compared to $53.3 million in the third quarter last year.
Quarterly Dividend and Share Repurchase ProgramOn July 28, 2014, Tetra Tech’s Board of Directors declared a quarterly dividend of $0.07 per share payable on September 5, 2014 to stockholders of record as of August 15, 2014. Additionally, the Board has committed that the remainder of the $100 million buyback program be completed before the end of fiscal year 2014 through daily open market repurchases. As of June 29, 2014, $53 million of this program remained. Tetra Tech’s Chairman and CEO, Dan Batrack commented, “While this quarter’s GAAP EPS was in line with guidance, our operational results were below our expectations due to weak performance in the RCM segment. Our front-end Engineering and Consulting Services and Technical Support Services segments have performed well, generating approximately 80 percent of the Company’s net revenue and nearly all of the Company’s cash flow and profit in fiscal 2014. We anticipate continued strong performance from our front-end segments.”
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