Welcome!

Web 2.0 Authors: Liz McMillan, Yeshim Deniz, Pat Romanski, Carmen Gonzalez, Jason Bloomberg

News Feed Item

TRC Announces First-Quarter Fiscal 2013 Financial Results

LOWELL, MA -- (Marketwire) -- 11/05/12 -- TRC Companies, Inc. (NYSE: TRR), a recognized leader in engineering, consulting and construction management services to the energy, environmental and infrastructure markets, today announced financial results for the fiscal three months ended September 28, 2012.

Financial Highlights

                                                    Three Months Ended
                                               ----------------------------
                                               September 28,  September 30,
(In millions, except per share data)                2012           2011
                                               -------------  -------------
Net service revenue(1)                         $        75.2  $        73.5
Arena Towers litigation reversal (2)           $           -  $       (11.2)
Operating income                               $         4.6  $        15.5
Federal and state income tax (provision)
 benefit (3)                                   $        (0.2) $         3.3
Net income applicable to TRC Companies, Inc.   $         4.3  $        18.7
Diluted earnings per common share              $        0.15  $        0.66
Diluted weighted-average common shares
 outstanding                                            29.4           28.4

(1) The Company believes net service revenue best reflects the value of
    services provided to its customers and is the most meaningful indicator
    of TRC's revenue performance.
(2) On October 5, 2011 a post-trial motion was granted to disregard a
    substantial portion of the verdict in this matter resulting in an $11.2
    million reduction of the litigation accrual in the first quarter of
    fiscal 2012. In the fourth quarter of fiscal 2011 the Company had
    recorded litigation expense of $17.3 million related to the verdict.
(3) The Company received approval of a federal tax settlement resulting in a
    one-time benefit in the first quarter of fiscal 2012.

Comments on the Results

"We reported incremental growth and steady profitability in the first quarter of fiscal 2013," said Chairman and Chief Executive Officer Chris Vincze. "Net Service Revenue (NSR) was up 2%, and we achieved operating income of $4.6 million, up 7% excluding last year's litigation reversal."

"Our Energy segment continues to be our top performer with NSR up 25% and profit up 42%. Demand remains strong for electric transmission and distribution engineering services as our utility customers increase investments to modernize or replace outdated infrastructure and enhance energy efficiency performance. Our Energy segment is also benefiting from greater geographic reach as recent office startups are now rapidly expanding our ability to service clients in those areas."

"Our Environmental and Infrastructure segments both experienced a sluggish quarter. NSR was down 6% for both segments, while profit decreased 22% and 20%, respectively. Importantly, however, each segment continued to be profitable at the operating level. Our results are consistent with the overall state of the economy as many clients have delayed or postponed capital programs until there is more clarity surrounding federal policy and the direction of the economy in the new year. The long-term prospects for the infrastructure market are supported by Congress' recent passing of the MAP-21 Federal Transportation Bill, which will provide states with a stable funding source through 2014."

Business Outlook

"TRC's long-term opportunities remain promising with favorable underlying industry trends. We are seeing material capital spending in the energy and power markets where TRC has become a leader in providing integrated professional services. Proposal activity in these areas is strong, although funding commitments for some of these projects continues to be affected by economic and policy factors. In the interim, TRC is focused on enhancing our integrated service offerings -- such as RE Power, Shale Gas and Ports and Pipelines -- where we expect the activity levels to strengthen first. In addition, we are continuing to identify potential acquisition targets to support our geographic and service expansion strategy."

Conference Call Information

The Company will broadcast its financial results conference call today, November 5, 2012 at 5 p.m. ET. Those who wish to listen to the conference call should visit the "Investor Center" section of TRC's website at www.TRCsolutions.com. The call may also be accessed by dialing (877) 709-8155 or (201) 689-8881. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company's website for one year.

About TRC

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 energy, environmental and infrastructure markets. TRC serves a broad range of clients in government 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 www.TRCsolutions.com and follow TRC on Twitter 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, 2012, 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.


                            TRC Companies, Inc.
              Condensed Consolidated Statements of Operations
                   (in thousands, except per share data)
                                (Unaudited)
                                                    Three Months Ended
                                               ----------------------------
                                               September 28,  September 30,
                                                    2012           2011
                                               -------------  -------------

Gross revenue                                  $     108,286  $     103,735
   Less subcontractor costs and other direct
    reimbursable charges                              33,070         30,280
                                               -------------  -------------
Net service revenue                                   75,216         73,455
                                               -------------  -------------

Interest income from contractual arrangements             45             78
Insurance recoverables and other income                1,744            220

Operating costs and expenses:
   Cost of services (exclusive of costs shown
    separately below)                                 63,686         60,162
   General and administrative expenses                 7,175          7,548
   Provision for doubtful accounts                         -            365
   Depreciation and amortization                       1,538          1,362
   Arena Towers litigation reversal                        -        (11,224)
                                               -------------  -------------
Total operating costs and expenses                    72,399         58,213
                                               -------------  -------------
Operating income                                       4,606         15,540
 Interest expense                                       (112)          (181)
                                               -------------  -------------
Income from operations before taxes                    4,494         15,359
 Federal and state income tax (provision)
 benefit                                                (234)         3,298
                                               -------------  -------------
Net income                                             4,260         18,657
 Net loss applicable to noncontrolling
 interest                                                 12             31
                                               -------------  -------------
Net income applicable to TRC Companies, Inc.           4,272         18,688
                                               =============  =============

Basic earnings per common share                $        0.15  $        0.68
                                               =============  =============
Diluted earnings per common share              $        0.15  $        0.66
                                               =============  =============

Weighted-average common shares outstanding:
   Basic                                              28,460         27,472
                                               =============  =============
   Diluted                                            29,439         28,392
                                               =============  =============



                            TRC Companies, Inc.
                   Condensed Consolidated Balance Sheets
                     (in thousands, except share data)
                                (Unaudited)
                                               September 28,     June 30,
                                                    2012           2012
                                               -------------  -------------
                    ASSETS
Current assets:
  Cash and cash equivalents                    $      14,852  $      16,561
  Accounts receivable, less allowance for
   doubtful accounts                                 103,667         95,215
  Insurance recoverable - environmental
   remediation                                        26,396         25,744
  Restricted investments                               5,591          4,413
  Prepaid expenses and other current assets           16,022         12,077
                                               -------------  -------------
    Total current assets                             166,528        154,010
                                               -------------  -------------

  Property and equipment                              53,879         53,352
  Less accumulated depreciation and
   amortization                                      (40,172)       (39,621)
                                               -------------  -------------
    Property and equipment, net                       13,707         13,731
                                               -------------  -------------
Goodwill                                              24,888         24,888
Investments in and advances to unconsolidated
 affiliates and construction joint ventures              118            109
Long-term restricted investments                      32,643         35,265
Long-term prepaid insurance                           33,568         34,272
Other assets                                          12,471         12,853
                                               -------------  -------------
    Total assets                               $     283,923  $     275,128
                                               =============  =============

            LIABILITIES AND EQUITY
Current liabilities:
  Current portion of long-term debt            $       4,404  $       1,315
  Current portion of capital lease obligations           326            267
  Accounts payable                                    28,532         30,712
  Accrued compensation and benefits                   42,542         36,292
  Deferred revenue                                    18,844         18,236
  Environmental remediation liabilities                  318            422
  Other accrued liabilities                           30,902         30,315
                                               -------------  -------------
    Total current liabilities                        125,868        117,559
                                               -------------  -------------
Non-current liabilities:
  Long-term debt, net of current portion               3,652          3,860
  Capital lease obligations, net of current
   portion                                               575            462
  Income taxes payable and deferred income tax
   liabilities                                           624            622
  Deferred revenue                                    75,941         79,104
  Environmental remediation liabilities                5,505          5,473
                                               -------------  -------------
    Total liabilities                                212,165        207,080
                                               -------------  -------------
Commitments and contingencies
Equity:
    Common stock, $.10 par value; 40,000,000
     shares authorized, 28,727,905 and
     28,724,423 shares issued and outstanding,
     respectively, at September 28, 2012, and
     28,130,702 and 28,127,220 shares issued
     and outstanding, respectively, at June
     30, 2012                                          2,873          2,813
  Additional paid-in capital                         178,687        179,402
  Accumulated deficit                               (109,408)      (113,680)
  Accumulated other comprehensive loss                   (79)          (184)
  Treasury stock, at cost                                (33)           (33)
                                               -------------  -------------
    Total shareholders' equity applicable to
     TRC Companies, Inc.                              72,040         68,318
  Noncontrolling interest                               (282)          (270)
                                               -------------  -------------
    Total equity                                      71,758         68,048
                                               -------------  -------------
    Total liabilities and equity               $     283,923  $     275,128
                                               =============  =============

Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.