LOWELL, MA — (Marketwire) — 02/08/12 — (NYSE: TRR), a recognized leader in engineering, consulting and construction management services to the , and markets, today announced financial results for the three and six month periods ended December 30, 2011.
“TRC delivered a strong second-quarter performance with net service revenue (NSR) growth of 23% driven by a combination of organic growth and contributions from our recent acquisitions,” said Chairman and Chief Executive Officer . “Much of the organic growth stemmed from our Energy segment, while our Environmental segment produced most of the acquisition related growth. In the quarter, we continued to improve our profitability with operating margins increasing 68% and net income more than doubling.”
“The performance of our Energy segment continues to be bolstered by increased investment by utilities in their electric transmission and distribution systems and a renewed focus on capital programs for electric system reliability. In the quarter, Energy segment NSR was up 34%, and segment profit increased by 43%. The growth in this segment is mostly organic and is a testament to the success of our strategy to gain market share through integrating TRC–s energy service offerings and expanding our geographic presence.”
“TRC–s Environmental segment continues to post steady results with a 22% increase in NSR, which was primarily attributable to recent acquisitions. Our performance was in line with the overall environmental marketplace, which experienced weakness due to several factors, including a slowdown in real estate activity and reduced government spending. As a result, segment profit in the quarter was down 6%.”
“Our Infrastructure segment performed well in the quarter, achieving NSR growth of 3% despite a challenging environment. The markets we serve continue to grapple with government budget deficits and the absence of a clear national policy for the transportation and infrastructure industries. Amidst these challenges, we continued to improve Infrastructure segment profit, which was up 54%, through enhanced project performance and execution and a focus on higher-margin project work.”
“Looking ahead, we see a number of opportunities to extend the momentum we have established in recent quarters, particularly within our Energy and Environmental segments. Our two-pronged profitable growth strategy, which combines selective acquisitions with internal growth initiatives, is delivering more consistent results as we have created a highly scalable, flexible and reliable business model. Several recently promulgated environmental regulations, involving the coal industry in particular, should support an increasing demand for many of our energy and environmental services in the coming quarters. We are also optimistic about opportunities for profitable growth within power markets such as energy efficiency, renewable energy, and electric transmission systems/substations upgrades, as well as the oil and gas markets. We believe the intermediate and long-term prospects for all three of our primary markets are promising and supported by favorable industry trends.”
The Company will broadcast its second-quarter fiscal 2012 financial results conference call today, at 9 a.m. ET. Those who wish to listen to the conference call should visit the “” section of TRC–s website at . The call also may be accessed by dialing (877) 709-8155 or (201) 689-8881 prior to the start of the call. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company–s website for one year.
A pioneer in groundbreaking scientific and engineering developments since the 1960s, TRC is a national engineering, consulting and construction management firm that provides integrated services to the , and markets. TRC serves a broad range of clients in and industry, implementing complex projects from initial concept to delivery and operation. TRC delivers results that enable clients to achieve success in a complex and changing world. For more information and updates from the Company, visit TRC–s website at and follow us on Twitter at and on .
Certain statements in this press release may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these statements by forward-looking words such as “may,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” or other words of similar import. You should consider statements that contain these words carefully because they discuss TRC–s future expectations, contain projections of the Company–s future results of operations or of its financial condition, or state other “forward-looking” information. TRC believes that it is important to communicate its future expectations to its investors. However, there may be events in the future that the Company is not able to accurately predict or control and that may cause its actual results to differ materially from the expectations described in its forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and actual results may differ materially from those discussed as a result of various factors, including, but not limited to, the availability and adequacy of insurance; the uncertainty of our operational and growth strategies; circumstances which could create large cash outflows, such as contract losses, litigation, uncollectible receivables and income tax assessments; regulatory uncertainty; the availability of funding for government projects; the level of demand for TRC–s services; product acceptance; industry-wide competitive factors; the ability to continue to attract and retain highly skilled and qualified personnel; and general political or economic conditions. Furthermore, market trends are subject to changes, which could adversely affect future results. See the risk factors and additional discussion in TRC–s Annual Report on Form 10-K for the fiscal year ended June 30, 2011, Quarterly Reports on Form 10-Q, and other factors detailed from time to time in the Company–s other filings with the Securities and Exchange Commission.
Dennis Walsh
Sharon Merrill
(617) 542-5300
Thomas W. Bennet, Jr.
CFO
(978) 970-5600