8-K
Tetra Tech Inc (TTEK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) ofthe Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 1, 2024
TETRA TECH, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 0-19655 | 95-4148514 |
|---|---|---|
| (State or other jurisdiction<br> of incorporation) | (Commission<br><br>File Number) | (IRS Employer<br><br> <br>Identification Number) |
3475 East Foothill Boulevard, Pasadena,California 91107
(Address of principal executive office, including zip code)
(626) 351-4664
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written<br>communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting<br>material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement<br>communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement<br>communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value | TTEK | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On May 1, 2024, Tetra Tech, Inc. (“Tetra Tech”) reported its financial results for the second fiscal quarter ended March 31, 2024. A copy of the press release is attached to this report as Exhibit 99.1.
Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
| Item 8.01. | Other Events. |
|---|
On May 1, 2024, Tetra Tech announced that its Board of Directors has declared a $0.29 per share quarterly cash dividend. The dividend is payable on May 31, 2024 to stockholders of record as of the close of business on May 20, 2024.
| Item 9.01. | Financial Statements and Exhibits. |
|---|
(d) Exhibits
| 99.1 | Press Release, dated May 1, 2024, reporting the financial results for Tetra Tech’s second fiscal<br>quarter ended March 31, 2024, and the declaration of a quarterly cash dividend. |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| --- | --- |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Tetra Tech has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TETRA TECH, INC. | ||
|---|---|---|
| Date: May 1, 2024 | By: | /s/ DAN L. BATRACK |
| Dan L. Batrack | ||
| Chairman and Chief Executive Officer |
3
Exhibit 99.1
| NEWS RELEASE<br><br> <br>May 1, 2024 |
|---|
Tetra Tech ReportsRecord Second Quarter Results and
Raises Full FiscalYear Guidance
| · | Record Revenue $1.25 billion and Record Net Revenue $1.05 billion |
|---|---|
| · | Record Q2 EBITDA $135 million, up 28% Y/Y |
| --- | --- |
| · | Record Q2 EPS of $1.42, up 34% Y/Y |
| --- | --- |
| · | Increasing Fiscal Year 2024 Net Revenue and EPS full year guidance |
| --- | --- |
Pasadena,California. Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment and sustainable infrastructure, today announced results for its second quarter ended March 31, 2024.
Second Quarter Highlights
| · | Net<br>Revenue^1^ increased 9% to $1.05 billion |
|---|---|
| · | EBITDA^1^increased 28% to $135 million |
| --- | --- |
| · | EPS<br> increased 34% Y/Y to $1.42 |
| --- | --- |
| · | Largest<br> second quarter backlog ever of $4.74 billion, up 11% Y/Y |
| --- | --- |
| · | Cashflow<br> from operations of $103 million, up 17% Y/Y |
| --- | --- |
| · | Industry-leading DSO of 55 days |
| --- | --- |
Recent Key Wins
| · | $464 million multiple-award U.S. Army Environmental Remediation Services contract, investigating<br> and remediating harmful contaminants, including PFAS at Army installations throughout the<br> U.S. |
|---|---|
| · | $375 million multiple-award NASA Environmental contract, providing technical consultation<br> and assessing innovative approaches to restore contaminated sites and improve climate resiliency |
| --- | --- |
| · | $150 million multiple-award U.S. Army Corps of Engineers contract, providing architect-engineering<br> services to support sustainable infrastructure |
| --- | --- |
| · | $55 million single-award Environmental Services contract, closing and dewatering ponds and remediating<br> combusted coal residuals |
| --- | --- |
| · | $22 million single-award U.K. Government Project Management and Design Services contract, designing building<br> systems to reduce emissions and increase energy efficiency |
| --- | --- |
^1^Non-GAAP financial measures which the Company believes provide valuable perspectives on its business results. Refer to tables in the Regulation G Information for reconciliations to the comparable GAAP metrics.
Executive Management Comments
Dan Batrack, Chairman and CEO, commented, “Tetra Tech continued our strong performance through the second quarter, including the expansion of our margins in GSG by 170 basis points and CIG by 320 basis points over the second quarter of last year. With increased profitability and record second quarter backlog, we are raising our full year guidance for net revenue and earnings, which represents forecasted EPS growth of 22% for fiscal 2024. We are looking forward to sharing our long-term strategy and 2030 vision for further revenue growth and margin expansion at our upcoming inaugural Investor Day on May 14th.”
Dr. Leslie Shoemaker, Chief Innovation and Sustainability Officer, stated, “As the leading high-end water consultancy in North America, we will highlight the newest market drivers for water and environment at our upcoming Investor Day, including our strategy for assisting our government and commercial clients in addressing EPA’s recent national PFAS regulations. Tetra Tech is an industry-leading expert for investigating and assessing the impacts of PFAS, including groundwater characterization work for the Department of Defense, award-winning municipal PFAS treatment designs, and removal of PFAS from fire-fighting foam in facilities world-wide. Tetra Tech’s Leading with Science^®^ approach provides cost-effective, technology driven, multi-contaminant treatment solutions across the entire water cycle.”
Sustainability Report Issued on Earth Day2024
Tetra Tech uses our *Leading with Science^®^*approach to develop innovative, sustainable solutions that support our clients in developing safe and resilient water supplies, net zero energy programs, and biodiversity protection. Our sustainability program and associated goals align with our ongoing commitment to the United Nations (UN) Global Compact, the UN Sustainable Development Goals, and the Science Based Targets Initiative.
Tetra Tech’s 2024 Sustainability Report, released on Earth Day, highlights progress on our environmental, social, and governance goals and our commitment to improving the lives of 1 billion people by 2030. Our Sustainability Report shows that cumulatively we have provided beneficial impacts for 625 million people and contributed to a reduction of 153 million metric tons of CO2e since our 2021 baseline assessment.
Quarterly Dividend and Share Repurchase Program
On April 29, 2024, Tetra Tech’s Board of Directors approved the Company’s 40^th^ consecutive quarterly dividend at an amount of $0.29 per share, a 12% increase year-over-year, payable on May 31, 2024, to stockholders of record as of May 20, 2024. Tetra Tech has $348 million remaining under its $400 million share repurchase program.
Six-Month Results
Revenue for the six-month period was $2.48 billion and net revenue was $2.07 billion, each up 21%, respectively, over the same period in fiscal 2023. EBITDA was $266 million, up 27%. EPS was $2.81, an increase of 17% over last year.
2
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.
For fiscal 2024, Tetra Tech is raising EPS guidance to range from $6.15 to $6.25 and is raising net revenue guidance to range from $4.21 billion to $4.31 billion^2^. Tetra Tech expects EPS for the third quarter of fiscal 2024 to range from $1.50 to $1.55 and net revenue to range from $1.05 billion to $1.10 billion.
Second QuarterEarnings Webcast
Investors will have the opportunity to access a live audio-visual webcast on the Company’s Investor Relations website at tetratech.com/investors on May 2, 2024, at 8:00 a.m. (PT). The webcast replay will be available following the call.
Investor Day 2024
Tetra Tech will host its inaugural Investor Day on May 14, 2024 at 9:00 a.m. Eastern Time. A live webcast will be available on the Company’s Investor Relations website at tetratech.com/investors. To participate in the webcast, please register at https://www.tetratech.com/investorday2024.
About Tetra Tech
Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end consulting and engineering services for projects worldwide. With 28,000 employees working together, Tetra Tech provides clear solutions to complex problems by Leading with Science^®^ to address the entire water cycle, protect and restore the environment, design sustainable and resilient infrastructure, and support the clean energy transition. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn and Facebook.
CONTACTS:
Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844
^2^Reconciliation of the net revenue guidance to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict the magnitude and timing of all the components required to provide such reconciliation with sufficient precision.
3
Forward-Looking Statements
This release contains forward-looking statementswithin the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan" and "believe," among others, generally identify forward-lookingstatements. These forward-looking statements are based on currently available operating, financial, economic and other information, andare subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictionsand may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could causeactual future results or events to differ materially from those projected in the forward-looking statements in this release, includingbut not limited to: continuing worldwide political and economic uncertainties; the U.S. Administration’s potential changes to fiscalpolicies; the cyclicality in demand for our overall services; the fluctuation in demand for oil and gas, and mining services; risks relatedto international operations; concentration of revenues from U.S. government agencies and potential funding disruptions by these agencies;dependence on winning or renewing U.S. government contracts; the delay or unavailability of public funding on U.S. government contracts;the U.S. government’s right to modify, delay, curtail or terminate contracts at its convenience; compliance with government procurementlaws and regulations; the impact of global pandemics like COVID-19; credit risks associated with certain clients in certain geographicareas or industries; acquisition strategy and integration risks; goodwill or other intangible asset impairment; the failure to complywith worldwide anti-bribery laws; the failure to comply with domestic and international export laws; the failure to properly manage projects;the loss of key personnel or the inability to attract and retain qualified personnel; the ability of our employees to obtain governmentgranted eligibility; the use of estimates and assumptions in the preparation of financial statements; the ability to maintain adequateworkforce utilization; the use of the percentage-of-completion method of accounting; the inability to accurately estimate and controlcontract costs; the failure to adequately recover on our claims for additional contract costs; the failure to win or renew contractswith private and public sector clients; growth strategy management; backlog cancellation and adjustments; risks relating to cyber securitybreaches; the failure of partners to perform on joint projects; the failure of subcontractors to satisfy their obligations; requirementsto pay liquidated damages based on contract performance; the adoption of new legal requirements; changes in resource management, environmentalor infrastructure industry laws, regulations or programs; changes in bank and capital markets and the access to capital; credit agreementcovenants; industry competition; liability related to legal proceedings, investigations, and disputes; the availability of third-partyinsurance coverage; the ability to obtain adequate bonding; employee, agent, or partner misconduct; employee risks related to internationaltravel; safety programs; conflict of interest issues; liabilities relating to reports and opinions; liabilities relating to environmentallaws and regulations; force majeure events; protection of intellectual property rights; stock price volatility; the ability to impedea business combination based on Delaware law and charter documents; and other risks and uncertainties as may be described in Tetra Tech’speriodic filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section ofTetra Tech’s Annual Report on Form 10-K for the fiscal year ended October 1, 2023. Readers should not place undue relianceon forward-looking statements since such information speaks only as of the date of this release. Tetra Tech does not intend to updateforward-looking statements and expressly disclaims any obligation to do so.
4
Non-GAAP Financial Measures
To supplement the financial results presentedin accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financialmeasures within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended. We provide these non-GAAP financialmeasures because we believe they provide a valuable perspective on our financial results. However, non-GAAP measures have limitationsas analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, GAAP measures. Inaddition, other companies may define non-GAAP measures differently which limits the ability of investors to compare non-GAAP measuresof Tetra Tech to those used by our peer companies. A reconciliation of these non-GAAP financial measures to the most directly comparableGAAP financial measures is included in this release.
5
TetraTech, Inc
BalanceSheet - Unaudited
(unaudited- in thousands, except par value)
| March 31, | October 1, | ||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Assets | |||||
| Current<br> assets: | |||||
| Cash<br> and cash equivalents | 210,294 | $ | 168,831 | ||
| Accounts receivable,<br> net | 1,037,883 | 974,535 | |||
| Contract assets | 102,991 | 113,939 | |||
| Prepaid expenses<br> and other current assets | 128,753 | 98,719 | |||
| Total current<br> assets | 1,479,921 | 1,356,024 | |||
| Property and<br> equipment, net | 72,897 | 74,832 | |||
| Right-of-use<br> assets, operating leases | 181,948 | 175,932 | |||
| Goodwill | 1,977,688 | 1,880,244 | |||
| Intangible assets,<br> net | 175,611 | 173,936 | |||
| Deferred tax<br> assets | 87,561 | 89,002 | |||
| Other non-current<br> assets | 94,948 | 70,507 | |||
| Total assets | 4,070,574 | $ | 3,820,477 | ||
| Liabilities<br> and Equity | |||||
| Current<br> liabilities: | |||||
| Accounts payable | 215,644 | $ | 173,271 | ||
| Accrued compensation | 251,035 | 302,755 | |||
| Contract liabilities | 373,682 | 335,044 | |||
| Short-term lease<br> liabilities, operating leases | 70,793 | 65,005 | |||
| Current contingent<br> earn-out liabilities | 46,959 | 51,108 | |||
| Other current<br> liabilities | 235,821 | 280,959 | |||
| Total current<br> liabilities | 1,193,934 | 1,208,142 | |||
| Deferred tax<br> liabilities | 17,647 | 14,256 | |||
| Long-term debt | 951,031 | 879,529 | |||
| Long-term lease<br> liabilities, operating leases | 139,364 | 144,685 | |||
| Non-current contingent<br> earn-out liabilities | 27,620 | 22,314 | |||
| Other non-current<br> liabilities | 156,128 | 148,045 | |||
| Equity: | |||||
| Preferred stock - authorized, 2,000<br> shares of 0.01 par value; no shares issued and outstanding at March 31, 2024 and October 1, 2023 | - | - | |||
| Common stock - authorized, 150,000<br> shares of 0.01 par value; issued and outstanding, 53,497 and 53,248 shares at March 31, 2024 and October 1, 2023,<br> respectively | 535 | 532 | |||
| Additional paid-in<br> capital | 18,972 | - | |||
| Accumulated other<br> comprehensive loss | (156,546 | ) | (195,295 | ) | |
| Retained earnings | 1,721,833 | 1,598,196 | |||
| Tetra Tech stockholders'<br> equity | 1,584,794 | 1,403,433 | |||
| Noncontrolling<br> interests | 56 | 73 | |||
| Total stockholders'<br> equity | 1,584,850 | 1,403,506 | |||
| Total liabilities<br> and stockholders' equity | 4,070,574 | $ | 3,820,477 |
All values are in US Dollars.
TetraTech, Inc
ConsolidatedStatements of Income
(unaudited- in thousands, except per share data)
| Three Months<br> Ended | Six Months<br> Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | April 2, | March 31, | April 2, | |||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | $ | 1,251,616 | $ | 1,158,226 | $ | 2,479,883 | $ | 2,052,991 | ||||
| Subcontractor costs | (198,989 | ) | (188,661 | ) | (412,087 | ) | (346,865 | ) | ||||
| Other costs of revenue | (845,132 | ) | (798,719 | ) | (1,669,803 | ) | (1,382,035 | ) | ||||
| Gross profit | 207,495 | 170,846 | 397,993 | 324,091 | ||||||||
| Selling, general and administrative expenses | (89,812 | ) | (82,347 | ) | (169,229 | ) | (138,848 | ) | ||||
| Acquisition and Integration expenses | - | (19,944 | ) | - | (23,705 | ) | ||||||
| Contingent consideration - fair value<br> adjustments | - | (7,544 | ) | - | (8,477 | ) | ||||||
| Income from operations | 117,683 | 61,011 | 228,764 | 153,061 | ||||||||
| Interest expense, net | (9,883 | ) | (13,323 | ) | (19,461 | ) | (18,695 | ) | ||||
| Other non-operating income | - | 21,407 | - | 89,402 | ||||||||
| Income before income tax expense | 107,800 | 69,095 | 209,303 | 223,768 | ||||||||
| Income tax expense | (31,341 | ) | (26,254 | ) | (57,864 | ) | (64,212 | ) | ||||
| Net income | 76,459 | 42,841 | 151,439 | 159,556 | ||||||||
| Net income attributable<br> to noncontrolling interests | (13 | ) | (11 | ) | (21 | ) | (20 | ) | ||||
| Net income attributable<br> to Tetra Tech | $ | 76,446 | $ | 42,830 | $ | 151,418 | $ | 159,536 | ||||
| Earnings per share attributable to Tetra Tech: | ||||||||||||
| Basic | $ | 1.43 | $ | 0.80 | $ | 2.83 | $ | 3.00 | ||||
| Diluted | $ | 1.42 | $ | 0.80 | $ | 2.81 | $ | 2.98 | ||||
| Weighted-average common shares outstanding: | ||||||||||||
| Basic | 53,484 | 53,227 | 53,419 | 53,165 | ||||||||
| Diluted | 53,875 | 53,627 | 53,825 | 53,595 |
TetraTech, Inc.
ConsolidatedStatements of Cash Flows
(unaudited- in thousands)
| Six Months<br> Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, | April 2, | |||||
| 2024 | 2023 | |||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 151,439 | $ | 159,556 | ||
| Adjustments to reconcile net income to net cash provided by<br> operating activities: | ||||||
| Depreciation and amortization | 37,215 | 23,537 | ||||
| Amortization of stock-based awards | 15,617 | 14,602 | ||||
| Deferred income taxes | (8,049 | ) | 20,978 | |||
| Fair value adjustments to foreign currency<br> forward contract | - | (89,402 | ) | |||
| Fair value adjustments to contingent<br> consideration | - | 8,477 | ||||
| Other non-cash items | 1,032 | (884 | ) | |||
| Changes in operating assets and liabilities, net of effects<br> of business acquisitions: | ||||||
| Accounts receivable and contract assets | (23,195 | ) | (36,545 | ) | ||
| Prepaid expenses and other assets | (33,412 | ) | (20,461 | ) | ||
| Accounts payable | 36,406 | 43,169 | ||||
| Accrued compensation | (74,291 | ) | (42,872 | ) | ||
| Contract liabilities | 34,801 | 29,037 | ||||
| Income taxes receivable/payable | (18,556 | ) | 3,190 | |||
| Other liabilities | (6,826 | ) | 741 | |||
| Net cash provided by operating<br> activities | 112,181 | 113,123 | ||||
| Cash flows from investing activities: | ||||||
| Payments for business acquisitions,<br> net of cash acquired | (71,796 | ) | (854,319 | ) | ||
| Settlement of foreign currency forward<br> contract | - | 109,306 | ||||
| Capital expenditures | (7,463 | ) | (10,294 | ) | ||
| Proceeds from sale of assets | 98 | 88 | ||||
| Net cash used in investing activities | (79,161 | ) | (755,219 | ) | ||
| Cash flows from financing activities: | ||||||
| Proceeds from borrowings | 180,000 | 975,889 | ||||
| Repayments on long-term debt | (110,000 | ) | (249,667 | ) | ||
| Shares repurchased for tax withholdings<br> on share-based awards | (12,781 | ) | (16,680 | ) | ||
| Payments of contingent earn-out liabilities | (22,112 | ) | (2,000 | ) | ||
| Stock options exercised | 1,462 | 91 | ||||
| Dividends paid | (27,781 | ) | (24,428 | ) | ||
| Principal payments on finance leases | (3,155 | ) | (2,714 | ) | ||
| Net cash provided by financing<br> activities | 5,633 | 680,491 | ||||
| Effect of exchange rate changes on cash and cash equivalents | 2,810 | 7,899 | ||||
| Net increase in cash and cash equivalents | 41,463 | 46,294 | ||||
| Cash and cash equivalents at beginning of period | 168,831 | 185,094 | ||||
| Cash and cash equivalents at end of period | $ | 210,294 | $ | 231,388 | ||
| Supplemental information: | ||||||
| Cash paid during the period for: | ||||||
| Interest | $ | 23,532 | $ | 18,791 | ||
| Income taxes, net of refunds received<br> of $2.4 million and $1.2 million | $ | 84,916 | $ | 40,107 |
Tetra Tech, Inc.
RegulationG Information
March 31,2024
Reconciliationof Revenue to Revenue, Net of Subcontractor Costs ("Net Revenue")
(inmillions)
| 2023 | 2024 | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 1st<br> Qtr | 2nd<br> Qtr | 6<br> Mos | 3rd<br> Qtr | 9<br> Mos | 4th<br> Qtr | Total | 1st<br> Qtr | 2nd<br> Qtr | 6<br> mos | |||||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||||||
| Revenue | 3,213.5 | 3,504.0 | 894.8 | 1,158.2 | 2,053.0 | 1,208.9 | 3,261.9 | 1,260.6 | 4,522.6 | 1,228.3 | 1,251.6 | 2,479.9 | ||||||||||||||||||||||||
| Subcontractor<br> Costs | (661.3 | ) | (668.5 | ) | (158.2 | ) | (188.7 | ) | (346.9 | ) | (221.4 | ) | (568.3 | ) | (203.2 | ) | (771.5 | ) | (213.1 | ) | (199.0 | ) | (412.1 | ) | ||||||||||||
| Net<br> Revenue | 2,551.6 | 2,835.5 | 736.6 | 969.5 | 1,706.1 | 987.5 | 2,693.6 | 1,057.4 | 3,751.1 | 1,015.2 | 1,052.6 | 2,067.8 | ||||||||||||||||||||||||
| GSG<br> Segment | ||||||||||||||||||||||||||||||||||||
| Revenue | 1,772.9 | 1,820.9 | 471.1 | 563.3 | 1,034.3 | 531.0 | 1,565.4 | 593.5 | 2,158.9 | 575.0 | 597.1 | 1,172.2 | ||||||||||||||||||||||||
| Subcontractor<br> Costs | (507.1 | ) | (484.4 | ) | (118.0 | ) | (127.7 | ) | (245.7 | ) | (140.8 | ) | (386.6 | ) | (136.9 | ) | (523.4 | ) | (132.3 | ) | (130.6 | ) | (263.0 | ) | ||||||||||||
| Net<br> Revenue | 1,265.8 | 1,336.5 | 353.1 | 435.6 | 788.6 | 390.2 | 1,178.8 | 456.6 | 1,635.5 | 442.7 | 466.5 | 909.2 | ||||||||||||||||||||||||
| CIG<br> Segment | ||||||||||||||||||||||||||||||||||||
| Revenue | 1,500.1 | 1,738.4 | 439.6 | 610.4 | 1,049.9 | 691.4 | 1,741.3 | 683.3 | 2,424.6 | 669.1 | 671.2 | 1,340.3 | ||||||||||||||||||||||||
| Subcontractor<br> Costs | (214.3 | ) | (239.3 | ) | (56.0 | ) | (76.4 | ) | (132.4 | ) | (94.0 | ) | (226.4 | ) | (82.6 | ) | (309.0 | ) | (96.6 | ) | (85.1 | ) | (181.7 | ) | ||||||||||||
| Net<br> Revenue | 1,285.8 | 1,499.1 | 383.6 | 534.0 | 917.5 | 597.4 | 1,514.9 | 600.7 | 2,115.6 | 572.5 | 586.1 | 1,158.6 |
Reconciliationof Net Income Attributable to Tetra Tech to Adjusted EBITDA
(inthousands)
| 2023 | 2024 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 1st<br> Qtr | 2nd<br> Qtr | 6<br> Mos | 3rd<br> Qtr | 9<br> Mos | 4th<br> Qtr | Total | 1st<br> Qtr | 2nd<br> Qtr | 6<br> mos | ||||||||||||||||||||
| Net Income Attributable<br> to Tetra Tech | 232,810 | 263,125 | 116,706 | 42,830 | 159,536 | 60,235 | 219,771 | 53,649 | 273,420 | 74,972 | 76,446 | 151,418 | |||||||||||||||||||
| Income Tax Expense | 34,039 | 85,602 | 37,958 | 26,254 | 64,212 | 22,568 | 86,780 | 40,745 | 127,526 | 26,523 | 31,341 | 57,864 | |||||||||||||||||||
| Interest<br> Expense^1^ | 11,831 | 11,584 | 5,372 | 13,323 | 18,695 | 14,869 | 33,564 | 12,973 | 46,537 | 9,578 | 9,883 | 19,461 | |||||||||||||||||||
| Depreciation | 12,337 | 13,859 | 3,178 | 4,849 | 8,027 | 5,624 | 13,651 | 6,330 | 19,980 | 6,951 | 5,637 | 12,588 | |||||||||||||||||||
| Amortization | 11,468 | 13,174 | 3,438 | 12,072 | 15,510 | 14,060 | 29,570 | 11,656 | 41,226 | 12,533 | 12,094 | 24,627 | |||||||||||||||||||
| FX Hedge Gain | - | (19,904 | ) | (67,995 | ) | (21,407 | ) | (89,402 | ) | - | (89,402 | ) | - | (89,402 | ) | - | - | - | |||||||||||||
| EBITDA | 302,485 | 367,440 | 98,657 | 77,921 | 176,578 | 117,356 | 293,934 | 125,353 | 419,287 | 130,557 | 135,401 | 265,958 | |||||||||||||||||||
| Contingent Consideration | (3,273 | ) | - | 933 | 7,544 | 8,477 | - | 8,477 | 3,778 | 12,255 | - | - | - | ||||||||||||||||||
| Acquisition &<br> Integration Expenses^2^ | - | - | 3,761 | 19,944 | 23,705 | 2,107 | 25,812 | 23,742 | 49,554 | - | - | - | |||||||||||||||||||
| COVID-19 Credits | - | (6,486 | ) | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||
| Adjusted<br> EBITDA | 299,212 | 360,954 | 103,351 | 105,409 | 208,760 | 119,463 | 328,223 | 152,873 | 481,096 | 130,557 | 135,401 | 265,958 |
^1^ Includes write-off of deferred debt origination fees of $2.7M in Q1-23 and $1.1M in Q2-23
^2^ Includes lease impairment charge of $16.4M in Q4-23