CORRECTION - TRC Announces Second-Quarter Fiscal 2016 Financial Results
Company Delivers Strong Performance on Top of Transformative Acquisition
/EINPresswire.com/ -- LOWELL, MA -- (Marketwired) -- 02/03/16 -- In the news release, "TRC Announces Second-Quarter Fiscal 2016 Financial Results" issued earlier today by TRC Companies, Inc. (NYSE: TRR), we are advised by the company that the fourth and fifth bullet sentences of the Second-Quarter FY 2016 Vs. Second-Quarter FY 2015 Highlights should read "Net income of $3.9 million; Adjusted net income(2) up 18% to 4.7 million" and "Diluted EPS of $0.13; Adjusted diluted EPS(2) up 15% to $0.15." Additionally, the second to last sentence of the second paragraph should read "NSR, adjusted EBITDA, and adjusted net income were up 12%, 13% and 18%, respectively, compared with the same period of fiscal 2015." Please also be advised that the figures to Adjusted net income(2) and Adjusted diluted earnings per common share(2) from the Non-GAAP Results table have been updated as well. Complete corrected text follows.
LOWELL, MA -- Feb 3, 2016 - TRC Companies, Inc. (NYSE: TRR)
Second-Quarter FY 2016 Vs. Second-Quarter FY 2015 Highlights
- NSR(1) up 12% to $111.4 million
- Operating income of $6.7 million; Adjusted operating income(2) up 16% to $7.9 million
- EBITDA of $9.5 million; Adjusted EBITDA(2) up 13% to $10.7 million
- Net income of $3.9 million; Adjusted net income(2) up 18% to $4.7 million
- Diluted EPS of $0.13; Adjusted diluted EPS(2) up 15% to $0.15
TRC Companies, Inc. (NYSE: TRR), a recognized leader in engineering, environmental consulting and construction-management services to the energy, environmental, infrastructure and pipeline markets, today announced financial results for the fiscal second quarter ended December 25, 2015.
"During our second quarter, we delivered strong financial results on top of the transformative acquisition of Willbros Professional Services (WPS), which closed November 30," said Chris Vincze, Chairman and Chief Executive Officer. "NSR, adjusted EBITDA, and adjusted net income were up 12%, 13% and 18%, respectively, compared with the same period of fiscal 2015. Results for the second quarter of fiscal 2016 included one month of performance from the Willbros acquisition."
Three Months Ended
-------------------------
December 25, December 26, %
(In millions, except per share data) 2015 2014 Change
------------ ------------
GAAP Results
Net service revenue(1) $ 111.4 $ 99.8 12%
Acquisition and integration expense $ 1.2 $ - N/A
Operating income $ 6.7 $ 6.9 -2%
Net income applicable to TRC Companies,
Inc. $ 3.9 $ 4.0 -2%
Diluted earnings per common share $ 0.13 $ 0.13 0%
Non-GAAP Results
Adjusted operating income(2) $ 7.9 $ 6.9 16%
Adjusted net income(2) $ 4.7 $ 4.0 18%
Adjusted EBITDA(2) $ 10.7 $ 9.5 13%
Adjusted diluted earnings per common
share(2) $ 0.15 $ 0.13 15%
Six Months Ended
-------------------------
December 25, December 26, %
(In millions, except per share data) 2015 2014 Change
------------ ------------
GAAP Results
Net service revenue(1) $ 211.5 $ 192.5 10%
Acquisition and integration expense $ 2.1 $ - N/A
Operating income $ 14.4 $ 12.9 12%
Net income applicable to TRC Companies,
Inc. $ 8.4 $ 7.5 13%
Diluted earnings per common share $ 0.27 $ 0.25 8%
Non-GAAP Results
Adjusted operating income(2) $ 16.5 $ 12.9 28%
Adjusted net income(2) $ 9.7 $ 7.5 30%
Adjusted EBITDA(2) $ 21.5 $ 17.8 21%
Adjusted diluted earnings per common
share(2) $ 0.31 $ 0.25 24%
(1) TRC believes net service revenue (NSR) best reflects the value of
services provided and is the most meaningful indicator of revenue
performance.
(2) Excludes acquisition and integration expenses of $1.2 million and $2.1
million for the three and six months ended December 25, 2015,
respectively.
Comments on the Results
"Overall, our business performed well. In particular, demand for electrical transmission and distribution services resulted in an 11% increase in Energy segment NSR, with segment profit up 17% year over year. In addition, transportation-related spending by our municipal and state clients drove a 26% increase in Infrastructure segment NSR, while project execution and cost control drove a 96% increase in segment profit. In our Environmental segment, a slowdown from certain oil and gas clients and the completion of a large pipeline permitting project led to a 2% decline in NSR and a profit decline of 6%. Even so, other service areas within the Environmental segment remain solid," said Vincze.
Business Outlook
"TRC is the national leader in the environmental permitting of pipeline projects. The acquisition of WPS represents the execution of our strategy to establish a premier pipeline and related facilities engineering, consulting and construction management capability. Now two months after closing, we have functionally integrated our two organizations, migrating the new business onto our payroll system, benefits, IT networks and ERP platform, while building the leading full-service pipeline consulting and engineering company in the nation," Vincze added.
"Our strategic growth initiatives are progressing through the first half of fiscal 2016, as demonstrated by our results. Demand for our Energy segment services from our utility clients remains robust. Our Infrastructure segment backlog continues to grow, and the new transportation bill improves the outlook for this segment. Although we expect to see a slowdown from our oil and gas clients, services related to environmental remediation, construction, transaction support, the retirement of coal plants and the need to transport natural gas should contribute to revenue in our Environmental segment going forward. These factors and the need to ensure the integrity of our national pipeline infrastructure also should support our new Pipeline Services segment. We believe the oil and gas market is a good long-term investment, and we have positioned TRC to be a leader in this industry."
Conference Call Information
TRC will webcast its financial results conference call on Thursday, February 4, 2016 at 9 a.m. ET. To listen to the live webcast and access the accompanying presentation slides, visit the "Investor Center" section of TRC's website at www.TRCsolutions.com. 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.
About TRC
A pioneer in groundbreaking scientific and engineering developments since the 1960s, TRC is a national engineering, environmental consulting and construction management firm that provides integrated services to the energy, environmental, infrastructure and pipeline services markets. TRC serves a broad range of commercial, industrial and government clients, 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 www.TRCsolutions.com and follow TRC on Twitter and StockTwits at @TRC_Companies and on LinkedIn.
Forward-Looking Statements
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, 2015, and other factors included from time to time in the Company's other subsequent filings with the Securities and Exchange Commission.
TRC Companies, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
-------------------------- --------------------------
December 25, December 26, December 25, December 26,
2015 2014 2015 2014
------------ ------------ ------------ ------------
Gross revenue $ 157,743 $ 143,228 $ 293,202 $ 266,253
Less subcontractor
costs and other
direct
reimbursable
charges 46,361 43,390 81,657 73,796
------------ ------------ ------------ ------------
Net service revenue 111,382 99,838 211,545 192,457
------------ ------------ ------------ ------------
Interest income from
contractual
arrangements 27 22 42 44
Insurance
recoverables and
other income 1,031 641 1,773 5,485
Operating costs and
expenses:
Cost of services
(exclusive of
costs shown
separately below) 93,676 82,599 176,660 163,789
General and
administrative
expenses 8,046 8,395 15,167 16,433
Acquisition and
integraton
expenses 1,240 - 2,118 -
Depreciation and
amortization 2,780 2,641 5,044 4,906
------------ ------------ ------------ ------------
Total operating
costs and expenses 105,742 93,635 198,989 185,128
------------ ------------ ------------ ------------
Operating income 6,698 6,866 14,371 12,858
Interest income 137 - 137 -
Interest expense (461) (21) (489) (52)
------------ ------------ ------------ ------------
Income from
operations before
taxes 6,374 6,845 14,019 12,806
Income tax provision (2,439) (2,848) (5,596) (5,328)
------------ ------------ ------------ ------------
Net income 3,935 3,997 8,423 7,478
Net loss applicable
to noncontrolling
interest 2 5 6 9
------------ ------------ ------------ ------------
Net income
applicable to TRC
Companies, Inc. $ 3,937 $ 4,002 $ 8,429 $ 7,487
============ ============ ============ ============
Basic earnings per
common share $ 0.13 $ 0.13 $ 0.27 $ 0.25
============ ============ ============ ============
Diluted earnings per
common share $ 0.13 $ 0.13 $ 0.27 $ 0.25
============ ============ ============ ============
Weighted-average
common shares
outstanding:
Basic 30,968 30,329 30,805 30,157
============ ============ ============ ============
Diluted 31,369 30,531 31,347 30,458
============ ============ ============ ============
TRC Companies, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(Unaudited)
December 25, June 30,
2015 2015
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 9,450 $ 37,296
Restricted cash 199 122
Accounts receivable, less allowance for
doubtful accounts 152,608 138,346
Insurance recoverable - environmental
remediation 40,422 40,927
Restricted investments 6,582 6,701
Deferred income tax assets 15,414 16,057
Income taxes refundable - 412
Prepaid expenses and other current assets 23,902 10,499
------------ ------------
Total current assets 248,577 250,360
------------ ------------
Property and equipment 71,018 64,594
Less accumulated depreciation and amortization (48,607) (50,885)
------------ ------------
Property and equipment, net 22,411 13,709
------------ ------------
Goodwill 101,697 37,024
Intangible assets, net 51,888 9,304
Long-term deferred income tax assets 2,583 2,867
Long-term restricted investments 17,102 18,385
Long-term prepaid insurance 24,809 25,929
Other assets 23,131 5,303
------------ ------------
Total assets $ 492,198 $ 362,881
============ ============
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $ 22,242 $ 50
Current portion of capital lease obligations 33 166
Accounts payable 33,202 31,999
Accrued compensation and benefits 44,858 47,233
Deferred revenue 16,350 10,612
Environmental remediation liabilities 8,673 8,695
Income taxes payable 230 3,271
Other accrued liabilities 46,243 42,170
------------ ------------
Total current liabilities 171,831 144,196
------------ ------------
Non-current liabilities:
Long-term debt, net of current portion 96,563 55
Income taxes payable and deferred income tax
liabilities 1,863 1,647
Deferred revenue 63,567 68,579
Environmental remediation liabilities 450 489
------------ ------------
Total liabilities 334,274 214,966
------------ ------------
Commitments and contingencies
Equity:
Common stock, $.10 par value; 40,000,000 shares
authorized, 31,039,895 and 31,036,413 shares
issued and outstanding, respectively, at
December 25, 2015, and 30,485,510 and
30,482,028 shares issued and outstanding,
respectively, at June 30, 2015 3,104 3,049
Additional paid-in capital 192,847 191,321
Accumulated deficit (37,510) (45,939)
Accumulated other comprehensive loss (83) (88)
Treasury stock, at cost (33) (33)
------------ ------------
Total shareholders' equity applicable to TRC
Companies, Inc. 158,325 148,310
Noncontrolling interest (401) (395)
------------ ------------
Total equity 157,924 147,915
------------ ------------
Total liabilities and equity $ 492,198 $ 362,881
============ ============
Investor Contact:
Andrew Blazier
Senior Associate
Sharon Merrill
(617) 542-5300
trr@investorrelations.com
Company Contact:
Thomas W. Bennet, Jr.
CFO
(978) 970-5600
tbennet@trcsolutions.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
