Welcome!

Agile Computing Authors: Stackify Blog, Carmen Gonzalez, Elizabeth White, AppNeta Blog, Pat Romanski

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
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Cybersecurity is a critical component of software development in many industries including medical devices. However, code is not always written to be robust or secure from the unknown or the unexpected. This gap can make medical devices susceptible to cybersecurity attacks ranging from compromised personal health information to life-sustaining treatment. In his session at @ThingsExpo, Clark Fortney, Software Engineer at Battelle, will discuss how programming oversight using key methods can incre...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...