UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended December 28, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from |
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to |
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Commission File Number 0-19655 |
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TETRA TECH, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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95-4148514 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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3475 East Foothill Boulevard, Pasadena, California 91107 |
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(Address of principal executive office and zip code) |
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(626) 351-4664 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
As of February 4, 2004, 54,641,408 shares of the registrant’s common stock were outstanding.
TETRA TECH, INC.
INDEX
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
Tetra Tech, Inc.
(In thousands, except par value)
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December 28, |
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September 28, |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
23,868 |
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$ |
33,164 |
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Accounts receivable – net |
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189,184 |
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167,717 |
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Unbilled receivables – net |
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169,424 |
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164,818 |
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Contract retentions |
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4,838 |
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4,286 |
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Prepaid expenses and other current assets |
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27,458 |
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26,037 |
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Income taxes receivable |
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28,189 |
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20,825 |
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Total current assets |
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442,961 |
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416,847 |
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PROPERTY AND EQUIPMENT: |
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Equipment, furniture and fixtures |
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86,061 |
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84,133 |
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Leasehold improvements |
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10,619 |
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10,123 |
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Total |
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96,680 |
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94,256 |
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Accumulated depreciation and amortization |
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(55,779 |
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(53,469 |
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PROPERTY AND EQUIPMENT – NET |
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40,901 |
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40,787 |
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GOODWILL |
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210,792 |
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210,792 |
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INTANGIBLE AND OTHER ASSETS – NET |
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25,342 |
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25,054 |
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TOTAL ASSETS |
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$ |
719,996 |
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$ |
693,480 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
90,508 |
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$ |
93,265 |
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Accrued compensation |
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38,850 |
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46,743 |
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Billings in excess of costs on uncompleted contracts |
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20,233 |
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16,307 |
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Other current liabilities |
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26,919 |
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26,562 |
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Deferred income taxes |
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29,390 |
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28,992 |
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Current portion of long-term obligations |
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25,079 |
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11,597 |
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Total current liabilities |
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230,979 |
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223,466 |
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LONG-TERM OBLIGATIONS |
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108,606 |
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107,463 |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS’ EQUITY |
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Preferred stock – authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at December 28, 2003 and September 28, 2003 |
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— |
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— |
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Exchangeable stock of a subsidiary |
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13,239 |
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13,239 |
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Common Stock – authorized, 85,000 shares of $0.01 par value; issued and outstanding, 54,452 and 54,090 shares at December 28, 2003 and September 28, 2003, respectively |
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545 |
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541 |
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Additional paid-in capital |
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221,484 |
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216,908 |
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Accumulated other comprehensive loss |
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(49 |
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(387 |
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Retained earnings |
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145,192 |
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132,250 |
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TOTAL STOCKHOLDERS’ EQUITY |
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380,411 |
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362,551 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
719,996 |
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$ |
693,480 |
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See accompanying Notes to Condensed Consolidated Financial Statements.
3
Tetra Tech, Inc.
(Unaudited – in thousands, except per share data)
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Three Months Ended |
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December
28, |
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December 29, |
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Revenue |
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$ |
337,102 |
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$ |
233,080 |
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Subcontractor costs |
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95,397 |
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52,098 |
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Revenue, net of subcontractor costs |
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241,705 |
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180,982 |
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Other contract costs |
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193,846 |
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143,374 |
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Gross profit |
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47,859 |
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37,608 |
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Selling, general and administrative expenses |
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23,918 |
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20,485 |
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Income from operations |
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23,941 |
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17,123 |
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Interest expense |
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2,401 |
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2,193 |
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Interest income |
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29 |
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301 |
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Income before income tax expense |
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21,569 |
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15,231 |
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