TRC Companies (TRR), the provider of engineering, consulting and construction management services, has announced a 66.78 percent plunge in profit for the financial year ended Jun. 30, 2014. The company earned $12.05 million or $0.40 a share in the financial year compared with $36.28 million or $1.23 a share a year ago.
Revenue during the financial year climbed 7.74 percent to $475.68 million from $441.52 million in the last year period.
Gross margin expanded by 205 basis points over the last year period to 74.62 percent. Total expenses as a percentage of revenues decreased to 95.60 percent from 95.80 percent in the same period last year. That has resulted in improvement of 19 basis points in operating margins to 4.40 percent.
The company reported operating income of $20.92 million, compared with $18.56 million in the previous year period.
"Our fourth quarter and fiscal 2014 NSR growth was driven by strong demand across all three of our segments. Organic and acquisition-related growth was evenly balanced for the year at 51% and 49%, respectively," said Chris Vincze chairman and chief executive officer.
"TRC is well-positioned to deliver top-line growth and improve margins as we begin fiscal 2015. Our strategy is to grow through geographic expansion, enhanced technical capabilities, and increased investment in strategic markets. We are focused on markets in which we have a track record of success, including power generation, transmission and distribution, oil and gas, and transportation. Our sales and marketing programs emphasize TRC's comprehensive capabilities across the entire project cycle. Aided by our strong balance sheet, we will also continue to pursue strategic acquisitions that expand our platform in key North American markets," Vincze added.
Cash Flow
TRC Companies has generated cash of $21.39 million from operating activities during the year, up 48.37 percent or $6.97 million when compared with the last year period. The company has generated 4.50 cents of operating cash flow in every sales dollar for the year, up from 3.26 cents in the same period last year.
The company has spent $6.77 million cash to meet investing activities during the year, as against cash outgo of $8.60 million in the last year period. It has made net capital expenditure of $4.96 million during the year, which was higher by 28.77 percent or $1.11 million, from a year ago.
The company's free cash flow accounted for 76.83 percent of operating cash flow for the year, compared with 73.30 percent in the last year period.
The company has spent $5.15 million cash to meet financing activities during the year, as against cash outgo of $4.24 million in the last year period. It has made net repayment of $5.26 million debt during the year. It has raised net of $0.07 million by selling common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $27.60 million, up 52.17 percent or $9.46 million from Jun. 30, 2013.
Working Capital
TRC Companies has witnessed an increase in the working capital over the last one year. The company's working capital stood at $88.82 million as at Jun. 30, 2014, up $27.18 million or 44.10 percent from $61.64 million on Jun. 30, 2013. It registered an increase in current ratio to 1.67 as at Jun. 30, 2014 from 1.50 on Jun. 30, 2013.
Days' sales outstanding moved up to 126 days for annual compared with 57 days for the last year period. This indicates the company has extended credit period to clients for making payment.
The company's days' payable outstanding went up to 94 days for annual compared with 49 days for the last year period. This reflects that the company has made late payment to vendors compared to prior year period.
Debt Position
TRC Companies has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $1.30 million, down 80.55 percent or $5.37 million, from Jun. 30, 2013. The company's total debt was 0.39 percent of total assets as on Jun. 30, 2014, compared with 2.17 percent on Jun. 30, 2013.
Shares of the company gained $0.31 or 5.01 percent to settle at $6.50 on Wednesday.