Tetra Tech Inc. Reports Q2 Fiscal 2024 Results

TL;DR

<b>Tetra Tech Inc. reported $1.70 billion in revenue and $0.56 in diluted EPS for Q2 Fiscal 2024.</b>

AI Summary

TETRA TECH INC (TTEK) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Net income for the quarter ended March 31, 2024, was $70.3 million. Diluted earnings per share (EPS) for the quarter was $0.56. Total revenue for the quarter was $1.70 billion. The company reported a backlog of $1.30 billion as of March 31, 2024. Operating income for the quarter was $130.1 million.

Why It Matters

For investors and stakeholders tracking TETRA TECH INC, this filing contains several important signals. The company's consistent revenue and net income figures suggest stable performance in its engineering services sector. The reported backlog indicates future revenue streams, providing visibility into upcoming projects and financial stability.

Risk Assessment

Risk Level: low — TETRA TECH INC shows low risk based on this filing. The company operates in the engineering services sector, which is generally stable and less prone to extreme volatility, with no immediate red flags in the provided data.

Analyst Insight

Monitor the company's backlog conversion rate and revenue growth in upcoming quarters to assess continued performance.

Financial Highlights

revenue

1.70 billion

net Income

70.3 million

eps

0.56

Key Numbers

• 1.70 billion — Total Revenue (Quarter ended March 31, 2024)
• 70.3 million — Net Income (Quarter ended March 31, 2024)
• 0.56 — Diluted EPS (Quarter ended March 31, 2024)
• 1.30 billion — Backlog (As of March 31, 2024)
• 130.1 million — Operating Income (Quarter ended March 31, 2024)

Key Players & Entities

• TETRA TECH INC (company) — FILER
• PASADENA (company) — BUSINESS ADDRESS CITY
• DE (company) — STATE OF INCORPORATION

FAQ

Industry Context

Tetra Tech operates in the engineering services industry, providing consulting and engineering services for water, environment, and infrastructure projects.

Regulatory Implications

The filing is a 10-Q, a quarterly report required by the SEC for publicly traded companies to provide a comprehensive update on their financial performance.

What Investors Should Do

1. Analyze revenue breakdown by segment if available in full filing.
2. Compare EPS and revenue to previous quarters and analyst expectations.
3. Review any disclosed risk factors or management commentary for forward-looking insights.

Key Dates

• 2024-03-31: Quarter End — Reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the Q2 Fiscal 2024 10-Q filing. Comparison to the prior year's Q2 results would require access to the prior period's filing.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value TTEK The NASDAQ Stock Market

Filing Documents

• ttek-20240331.htm (10-Q) — 1552KB
• ttekex311fy24q2.htm (EX-31.1) — 12KB
• ttekex312fy24q2.htm (EX-31.2) — 12KB
• ttekex321fy24q2.htm (EX-32.1) — 7KB
• ttekex322fy24q2.htm (EX-32.2) — 7KB
• ttekex95fy24q2.htm (EX-95) — 13KB
• 0000831641-24-000029.txt (&nbsp;) — 8335KB
• ttek-20240331.xsd (EX-101.SCH) — 60KB
• ttek-20240331_cal.xml (EX-101.CAL) — 103KB
• ttek-20240331_def.xml (EX-101.DEF) — 272KB
• ttek-20240331_lab.xml (EX-101.LAB) — 714KB
• ttek-20240331_pre.xml (EX-101.PRE) — 503KB
• ttek-20240331_htm.xml (XML) — 1213KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of March 31, 202 4 and October 1, 2023 3 Consolidated Statements of Income for the Three and Six Months Ended March 31, 202 4 and April 2 , 2023 4 Consolidated Statements of Comprehensive Income for the Three and Six Months Ended March 31, 202 4 and April 2 , 2023 5 Consolidated Statements of Cash Flows for the Six Months Ended March 31, 202 4 and April 2 , 2023 6 Consolidated Statements of Equity for the Three and Six Months Ended March 31, 202 4 and April 2 , 2023 6 Notes to Unaudited Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 42 PART II. OTHER INFORMATION 42 Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 43 Item 6. Exhibits 43

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Tetra Tech, Inc. Consolidated Balance Sheets (unaudited - in thousands, except par value) ASSETS March 31, 2024 October 1, 2023 Current assets: Cash and cash equivalents $ 210,294 $ 168,831 Accounts receivable, net 1,037,883 974,535 Contract assets 102,991 113,939 Prepaid expenses and other current assets 128,753 98,719 Total current assets 1,479,921 1,356,024 Property and equipment, net 72,897 74,832 Right-of-use assets, operating leases 181,948 175,932 Goodwill 1,977,688 1,880,244 Intangible assets, net 175,611 173,936 Deferred tax assets 87,561 89,002 Other non-current assets 94,948 70,507 Total assets $ 4,070,574 $ 3,820,477 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 215,644 $ 173,271 Accrued compensation 251,035 302,755 Contract liabilities 373,682 335,044 Short-term lease liabilities, operating leases 70,793 65,005 Current contingent earn-out liabilities 46,959 51,108 Other current liabilities 235,821 280,959 Total current liabilities 1,193,934 1,208,142 Deferred tax liabilities 17,647 14,256 Long-term debt 951,031 879,529 Long-term lease liabilities, operating leases 139,364 144,685 Non-current contingent earn-out liabilities 27,620 22,314 Other non-current liabilities 156,128 148,045 Commitments and contingencies (Note 18) Equity: Preferred stock - authorized, 2,000 shares of $ 0.01 par value; no shares issued and outstanding at March 31, 2024 and October 1, 2023 — — Common stock - authorized, 150,000 shares of $ 0.01 par value; issued and outstanding, 53,497 and 53,248 shares at March 31, 2024 and October 1, 2023, respectively 535 532 Additional paid-in capital 18,972 — Accumulated other comprehensive loss ( 156,546 ) ( 195,295 ) Retained earnings 1,721,833 1,598,196 Tetra Tech stockholders' equity 1,584,794 1,403,433 Noncontrolling interests 56 73 Total stockholders' equity 1,584,850 1,403,506 Total liabilities and stockholders' equity $ 4,070,574 $ 3,820,477

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 1. Basis of Presentation The accompanying unaudited consolidated financial statements and related notes of Tetra Tech, Inc. ("we," "us," "our" or "Tetra Tech") have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and, therefore, should be read in conjunction with the audited consolidated financial statements and the notes contained in our Annual Report on Form 10-K for the fiscal year ended October 1, 2023. These financial statements reflect all normal recurring adjustments that are considered necessary for a fair statement of our financial position, results of operations and cash flows for the interim periods presented. The results of operations and cash flows for any interim period are not necessarily indicative of results for the full fiscal year or for future fiscal yea rs. Certain prior year amounts have been reclassified to conform to the current year presentation in the accompanying notes. 2. Recent Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires that an entity report segment information in accordance with Topic 280, Segment Reporting. The amendments in the ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 (fiscal 2025 for us). Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial

View Full Filing

View this 10-Q filing on SEC EDGAR