LOWELL, MA — (Marketwired) — 11/04/14 — (NYSE: TRR), a recognized leader in engineering, consulting and construction management services to the , and markets, announced today financial results for the fiscal first quarter ended September 26, 2014.
(1) The Company believes net service revenue (NSR) best reflects the value of services provided and is the most meaningful indicator of revenue performance.
“TRC delivered double-digit growth on both the top and bottom line for the first quarter of fiscal 2015,” said Chris Vincze, Chairman and Chief Executive Officer. “NSR increased 14%, with positive contributions from all three segments. Operating income grew 41% and net income was up 40%. Our first-quarter results are proof that our profitable growth and performance excellence initiatives are on track.
“In our Environmental segment, strong demand from oil and gas customers, specifically for remediation and pipeline permitting services, drove 24% NSR growth and a 9% increase in profit. Energy segment NSR grew 15% as utility clients expanded capital spending programs for power delivery, transmission and distribution services — markets where we now have a greater geographic presence. TRC–s ongoing initiatives to improve labor utilization resulted in a 38% increase in Energy segment profit. Within our Infrastructure segment, NSR was 4% higher, driven by capital investments by commercial clients, as well as State and municipal transportation projects, however, profit decreased 20% due to contract scope changes under negotiation.”
The Company also announced today that its Board of Directors has authorized the repurchase of up to $10 million of common stock over the next three years. TRC intends to repurchase shares from time to time in open market transactions in accordance with applicable federal securities laws. The timing and the amount of any repurchases will be determined by the Company–s management based on its evaluation of market conditions, capital allocation alternatives, and other factors. The program does not require the Company to purchase any specific number of shares and may be modified, suspended, cancelled or reinstated by the Company at any time.
“TRC is well-positioned in markets with attractive long-term growth opportunities, and we are bidding on a record level of new projects in all three segments. As we expand the scale of our business, we are driving improved performance to support our clients in solving the world–s energy, environmental and infrastructure challenges. We continue to maintain significant balance sheet flexibility to support our growth initiatives, including continued organic investments and strategic acquisitions. In addition, our stock repurchase program demonstrates the Board–s confidence in our ability to generate long-term profitable growth and our commitment to enhancing shareholder value,” concluded Vincze.
TRC will broadcast its financial results conference call today, November 4, 2014 at 9 a.m. ET. To listen to the live webcast and access the accompanying presentation slides, visit the “” section of TRC–s website at . The call also may be accessed by dialing (877) 407-5790 or (201) 689-8328. A webcast replay will be available on the Company–s website for approximately 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 and at @TRC_Companies 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, 2014, and other factors included from time to time in the Company–s other subsequent filings with the Securities and Exchange Commission.
Dennis Walsh
Vice President
Sharon Merrill
(617) 542-5300
Thomas W. Bennet, Jr.
CFO
(978) 970-5600