Tetra Tech, Inc. (NASDAQ:TTEK) Q4 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 11:00 am ET


Tetra Tech, Inc. (NASDAQ:TTEK) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, and thank you for joining the Tetra Tech earnings call. By now, you should have received a copy of the press release. If you have not, please contact the Company's corporate office at (626) 351-4664.

As a reminder, Tetra Tech is also simulcasting this presentation with slides in the Investor Section of its website at www.tetratech.com. This call is being recorded at the request of Tetra Tech, and its broadcast is the copyright property of Tetra Tech. Any rebroadcast of this information in whole or part without the prior written permission of Tetra Tech is prohibited.

With us today from Management are Dan Batrack, Chairman and Chief Executive Officer; and Steve Burdick, Chief Financial Officer. They will provide a brief overview of the results, and will open up the call for questions.

I would like to direct your attention to the Safe Harbor statement in today's presentation. Today's discussion contains forward-looking statements about future growth and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements, due to various risks and uncertainties, including the risks described in Tetra Tech's periodic reports filed with the SEC. Except as required by law, Tetra Tech takes no obligation to update its forward-looking statements.

In addition, since Management will be presenting some non-GAAP financial measures as references, the appropriate GAAP financial reconciliations are posted in the Investor section of Tetra Tech's website. [Operator Instructions]

With that, I would like to turn the call over to Dan Batrack. Please go ahead, Mr. Batrack.

Dan L. Batrack

Great. Thank you very much, Michelle. And good morning, and welcome to our fourth quarter and fiscal year 2019 earnings conference call.

Fiscal year 2019 was an extraordinary year for us here at Tetra Tech. We grew at double-digit rates across multiple metrics, resulting in record highs for revenue, net revenue, earnings per share and our cash generation. We ended the year with our backlog exceeding $3 billion for the first time in Tetra Tech's history, providing us with excellent visibility and momentum as we enter fiscal year 2020.

As we enter this new decade, we see increased global demand for our differentiated water and environmental services and our high-end Leading with Science approach. I'll begin today's presentation with an overview of our quarterly and annual results and our business outlook, while Steve Burdick, our Chief Financial Officer, will provide additional details on our financial performance and our capital allocation.

We had a very strong fourth quarter, led by our revenue, earnings per share and backlog growth. Our net revenue of $640 million was up 14% from the prior year. Our fourth quarter adjusted earnings per share of $0.88 was up 17% from last year, and our backlog was up 16% year-over-year finishing at just under $3.1 billion, the highest in the history of the Company. In the fourth quarter, we added the firm White Young Green, or WYG, providing us with a new United Kingdom platform. And I'm pleased to say that our initial integration is