TRC Companies, Inc. (TRR) has reported an 1.55 percent rise in profit for the quarter ended Dec. 30, 2016. The company has earned $4 million, or $0.13 a share in the quarter, compared with $3.94 million, or $0.13 a share for the same period last year.
Revenue during the quarter grew 14.34 percent to $127.36 million from $111.38 million in the previous year period. Gross margin for the quarter expanded 118 basis points over the previous year period to 17.07 percent. Total expenses were 94.48 percent of quarterly revenues, up from 93.99 percent for the same period last year. That has resulted in a contraction of 49 basis points in operating margin to 5.52 percent.
Operating income for the quarter was $7.04 million, compared with $6.70 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $11.40 million compared with $10.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 66 basis points in the quarter to 8.95 percent from 9.61 percent in the last year period.
"Our second quarter results demonstrate the benefit of our diversified business model, which has driven continued growth during the past several quarters. In the second quarter of fiscal 2017, robust demand drove growth in revenues and generated strong operating cash flow. NSR was $127.4 million, up 14% from $111.4 million in the same period of fiscal 2016. The increase was primarily from our Oil & Gas segment, which we acquired late in the second quarter of fiscal 2016, as well as the strong performance of our Infrastructure segment," said Chris Vincze, chairman and chief executive officer. "Operating income was $7.0 million, up $0.3 million from the prior-year period. Net income was $4.0 million, up $0.1 million from the year-ago period, and EBITDA was $11.4 million, up $1.9 million or 20% from the prior-year period. Our $26.7 million cash balance at the end of the quarter was up significantly as a result of operating cash flow of $21.4 million."
Working capital increases
TRC Companies, Inc. has recorded an increase in the working capital over the last year. It stood at $81.69 million as at Dec. 30, 2016, up 6.44 percent or $4.94 million from $76.75 million on Dec. 25, 2015. Current ratio was at 1.42 as on Dec. 30, 2016, down from 1.45 on Dec. 25, 2015.
Days sales outstanding were almost stable at 80 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 22 days for the quarter from 16 for the same period last year.
Debt comes down significantly
TRC Companies, Inc. has recorded a decline in total debt over the last one year. It stood at $88.06 million as on Dec. 30, 2016, down 25.90 percent or $30.77 million from $118.84 million on Dec. 25, 2015. Total debt was 17.76 percent of total assets as on Dec. 30, 2016, compared with 24.14 percent on Dec. 25, 2015. Debt to equity ratio was at 0.54 as on Dec. 30, 2016, down from 0.75 as on Dec. 25, 2015. Interest coverage ratio deteriorated to 8.37 for the quarter from 14.53 for the same period last year.
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