Tetra Tech Reports Record First Quarter 2019 Results

Tetra Tech, Inc. (NASDAQ: TTEK) today announced results for the first quarter ended December 30, 2018.

First Quarter Results

Tetra Tech achieved its best first quarter in the Company’s history with record net revenue, operating income, adjusted EPS¹ and backlog. Revenue and revenue, net of subcontractor costs¹ (net revenue), in the first quarter totaled $717 million and $553 million, respectively. Operating income for the first quarter was $56 million, up 15% year-over-year. EPS was $0.75 on a GAAP basis, however, excluding a non-recurring tax benefit, adjusted EPS was $0.70, up 8% year-over-year. Backlog at the end of the quarter was a record $2.79 billion, up 15% year-over-year.

Quarterly Dividend and Share Repurchase Program

On January 28, 2019, Tetra Tech’s Board of Directors declared a quarterly dividend of $0.12 per share payable on February 28, 2019 to stockholders of record as of February 13, 2019. In the first quarter, Tetra Tech repurchased $25 million of common stock. Additionally, as of December 30, 2018, the Company had $200 million remaining under the approved share repurchase program.

Comments on Results

Tetra Tech’s Chairman and CEO, Dan Batrack, commented, “We had a strong start to fiscal year 2019 with record first quarter performance which exceeded our earnings guidance. We continue to see increasing demand across our end markets for our high-end consulting and engineering services focused on water, renewable energy, and sustainable infrastructure. New project wins in the quarter drove our backlog to an all-time record of $2.79 billion and provides great visibility for the remainder of the fiscal year.”

Business Outlook

The following statements are based on current expectations. These statements are forward-looking and the actual results could differ materially. These statements do not include the potential impact of transactions that may be completed or developments that become evident after the date of this release. The Business Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.

Tetra Tech expects EPS for the second quarter of fiscal 2019 to range from $0.61 to $0.66. Net revenue for the second quarter is expected to range from $520 million to $570 million. For fiscal 2019, Tetra Tech is increasing its EPS guidance and now expects EPS, excluding the non-recurring tax benefit in the first quarter, to be in the range of $2.80 to $2.95. For fiscal 2019, Tetra Tech expects net revenue to range from $2.2 billion to $2.4 billion.