Tetra Tech, Inc (TTEK) swung to a net profit for the quarter ended Oct. 02, 2016. The company has made a net profit of $31.10 million, or $ 0.53 a share in the quarter, against a net loss of $31.72 million, or $0.53 a share in the last year period. Revenue during the quarter grew 25.95 percent to $728.51 million from $578.39 million in the previous year period. Gross margin for the quarter contracted 144 basis points over the previous year period to 13.34 percent. Operating margin for the quarter period stood at positive 6.48 percent as compared to a negative 3.47 percent for the previous year period.
Operating income for the quarter was $47.19 million, compared with an operating loss of $20.05 million in the previous year period.
Tetra Tech’s Chairman and Chief executive officer, Dan Batrack commented, “Tetra Tech had a strong fiscal 2016 and finished the year with record-high fourth quarter revenue and income. We continued our focus on leading with science and providing clients with differentiated high-end consulting and engineering services primarily in the water, environment and energy markets. We completed the year with broad-based contract wins across our end markets, led by growth in U.S. federal, state and local, and international development. This momentum drove our backlog to an all-time high, providing a strong foundation for growth in fiscal 2017.”
For the first-quarter, Tetra Tech, Inc expects revenue to be in the range of $450 million to $475 million. Tetra Tech expects revenue to be in the range of $2,000 million to $2,100 million for financial year 2017. The company projects diluted earnings per share to be in the range of $0.44 to $0.48 for the first-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $2 to $2.20.
Operating cash flow declines
Tetra Tech, Inc has generated cash of $142.02 million from operating activities during the year, down 12.79 percent or $20.83 million, when compared with the last year. The company has spent $94.02 million cash to meet investing activities during the year as against cash outgo of $21.02 million in the last year. It has incurred net capital expenditure of $8.87 million on net basis during the year, down 36.06 percent or $5 million from year ago.
The company has spent $25.39 million cash to carry out financing activities during the year as against cash outgo of $123.58 million in the last year period.
Cash and cash equivalents stood at $160.46 million as on Oct. 02, 2016, up 18.57 percent or $25.13 million from $135.33 million on Sep. 27, 2015.
Working capital increases
Tetra Tech, Inc has recorded an increase in the working capital over the last year. It stood at $450.79 million as at Oct. 02, 2016, up 20.75 percent or $77.45 million from $373.33 million on Sep. 27, 2015. Current ratio was at 1.94 as on Oct. 02, 2016, up from 1.83 on Sep. 27, 2015.
Days sales outstanding went down to 49 days for the quarter compared with 51 days for the same period last year.
At the same time, days payable outstanding went down to 12 days for the quarter from 14 for the same period last year.
Debt increases substantially
Tetra Tech, Inc has witnessed an increase in total debt over the last one year. It stood at $347.01 million as on Oct. 02, 2016, up 79.91 percent or $154.14 million from $192.88 million on Sep. 27, 2015. Total debt was 19.31 percent of total assets as on Oct. 02, 2016, compared with 12.37 percent on Sep. 27, 2015. Debt to equity ratio was at 0.40 as on Oct. 02, 2016, up from 0.23 as on Sep. 27, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
