LOWELL, MA — (Marketwired) — 05/08/13 — , May 8, 2013 – (NYSE: TRR), a recognized leader in engineering, consulting and construction management services to the , and markets, announced today financial results for the fiscal three and nine months ended March 29, 2013.
“TRC had a strong third quarter with solid top line contributions from all three segments,” said Chairman and Chief Executive Officer, . “Overall Net Service Revenue (NSR) was up 11% compared with the same quarter last year.”
“NSR growth was fairly balanced with two-thirds coming from organic sources, while acquisitions provided the other third. Strong demand for electric distribution services and further expansion into the mid-Atlantic region led to a 16% increase in Energy segment NSR, while in the Environmental segment, NSR increased 7% due to increased utilization on large remediation projects. Profit in these segments was lower than the same quarter of the prior year, primarily due to increased costs on several fixed price projects, acquisition integration costs, and growth-related staffing costs. Infrastructure segment NSR was up 14% and profit was sharply higher compared with the same period of the prior year, largely due to improving market conditions and initiatives focused on higher margin work.”
“We continued to benefit from our efficient cost structure. G&A expenses were flat in the quarter compared with the prior year, while the ratio of G&A costs to NSR decreased to 9.7% from 10.8% in the prior year period. The income tax expense in the quarter reflects continued federal alternative minimum tax and state income tax costs, compared with a tax benefit of $0.02 per diluted share in the prior year period.”
TRC also announced today that it has acquired the Covina, California operations of Ocampo-Esta Corporation, a power delivery engineering company, thus increasing its presence in the very active southern California utility market. “Ocampo-Esta has an outstanding reputation, and we welcome their talented staff of professionals to TRC. This acquisition, combined with the two acquisitions we closed last quarter — the GE Air Emissions Testing business and the Sacramento-based energy efficiency consulting firm Heschong-Mahone Group — furthers our growth strategy and expands our geographic presence and service offerings, particularly to the utility industry.”
“We are optimistic about the long-term prospects for our markets and believe we are uniquely positioned to serve them. Our NSR backlog grew 1.2% to $245 million compared with the third quarter of the prior year and was up sequentially by $20 million or 8.9% over the second quarter of this fiscal year. The demand for electric utility and energy efficiency services will continue. America–s transportation infrastructure is in critical need of upgrade and repair and we are beginning to see signs of recovery in the environmental marketplace. Our strong financial position, including our new revolving credit facility, will serve our long-term strategy, allowing us to focus on our clients– needs and seek out growth opportunities,” concluded Vincze.
The Company will broadcast its financial results conference call today, May 8, 2013 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 may also be accessed by dialing (877) 709-8155 or (201) 689-8881. 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 TRC 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 uncertainty of TRC–s 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; the availability and adequacy of insurance; 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, 2012, 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