LOWELL, MA — (Marketwire) — 05/09/12 — (NYSE: TRR), a recognized leader in engineering, consulting and construction management services to the , and markets, today announced financial results for the three and nine month periods ended March 30, 2012.
“In the third quarter, we delivered another solid performance, growing net service revenue (NSR) by 30% and more than tripling our operating income,” said Chairman and Chief Executive Officer . “The revenue increase is primarily the result of executing our organic growth strategy in the Energy segment, combined with contributions from our recent acquisitions in the Environmental segment. In addition, our ongoing margin improvement initiatives are proving to be successful — resulting in enhanced operating margins in the quarter.”
“TRC–s Energy segment continues to be our largest contributor to growth. For the quarter, NSR for this segment was up 40%, and segment profit increased 57%. Demand in this segment has strengthened as utilities have enhanced capital investments to upgrade their electrical transmission and distribution systems. We also continue to see healthy levels of activity in the energy efficiency related markets.”
“The acquisitions we have made in our Environmental segment are contributing meaningfully to our overall results. NSR for this segment grew 30%, with a large majority of that growth coming from acquisitions. Higher project volume and improvements to our cost structure resulted in an impressive 81% increase in segment profit.”
“Infrastructure segment NSR for the quarter was up 8% despite the headwinds presented by the lack of a federal transportation bill and tight state and municipal funds. Part of our successful strategy for this segment has been to focus on TRC niche markets, such as construction engineering inspection, where TRC provides cost-effective services in high volume for many state transportation departments. In addition to the NSR growth, improved project execution across the segment and a lower expense structure translated into a 57% increase in segment profit for the third quarter.”
“The long-term outlook for all three of TRC–s operating segments remains promising. In the near-term, we will benefit from the increasing demand for our Energy services, while the Environmental and Infrastructure markets are expected to regain momentum in the mid- to longer-term. The nation–s focus on developing more efficient and cleaner power generation sources, as well as renewable energy initiatives, will create material opportunities for our Energy segment. In our Environmental segment, TRC has the capabilities to support all phases of the development of the natural gas markets. Two years ago, we launched our shale initiative to better capitalize on our multifaceted expertise in that market. We will continue to focus on profitable growth for our Infrastructure segment through organic growth initiatives, cross-selling opportunities and margin improvement.”
“Overall, TRC has created a highly scalable business model that enables us to pursue strategic niche acquisitions while continuing to invest in internal growth. We have minimal long-term debt and a healthy balance sheet, which provides us with the financial flexibility to execute both elements of our growth strategy. We remain confident that our unique blend of specialized services, talented staff of professionals and reputation for excellence will continue to differentiate TRC in our markets. As the business and economic environments gradually improve, we are optimistic about achieving our goal of delivering consistent profitable growth.”
The Company will broadcast its 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 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 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