Boston, MA 09/11/2014 (wallstreetpr) – TRC Companies, Inc. (NYSE:TRR) announced the financial result of the fourth quarter of fiscal 2014 (4Q2014) ended June 30, 2014. The Company reported a solid growth in business both organically and through the acquisition of new projects; but, witnessed bottom-line (net income) pressure due to the tax adjustment.
Operational overview
In 4Q2014, the net service revenue (NSR) grew by 9% to $94.5 million (FY2014: +11%) and operating income increased by 45% to $9.0 million (FY2014: +13%) due to the positive growth across three segments.
During 4Q2014, Energy segment NSR increased by 18% (FY2014: +21%) and profit were up by 11% (FY2014: +14%) due to higher demand in testing and commissioning services and geographic expansion. These factors along with increasing investments in transmission and distribution system by utility customers will provide growth opportunity for the segment.
Similarly, the investment by state government clients continued to support the infrastructure segment. During the period, the segment NSR grew by 8% (FY2014: +6%) and the profit were up by 2% (FY2014: +1%). The Company anticipates growth in the segment as it expects more large engineering projects related to construction and continued government’s investment in transportation-related projects.
At the same time, the strong performance of the fixed-price projects and growing demand for pipeline permission and remediation increased the Environmental segment NSR by 2% (FY2014: +5%) and profit by 7% (FY2014: +15%).
Financial strength
As of June 30, 2014, TRC Companies, Inc. (NYSE:TRR) has the cash balance of $27.6 million, which increased substantially compared to the same period of 2013. The increase was due to higher net cash of $21.4 million generated from operation and lower cash of $6.8 million used in investing activities, which partly offset the additional payments on long-term borrowings and capital lease obligations.
Prospect
TRC Companies, Inc. (NYSE:TRR) continues to enhance the technical capabilities and grow with the expansion across geographies. The Company intends to increase the investment in strategic markets such as generation, transmission and distribution of power, transportation and oil and gas that will offer growth organically and also improve the margin in FY2015.
