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• | The Company recorded a net tax benefit of $27 and $21 within income tax expense for the three and six months ended December 30, 2016, respectively, related to net tax windfalls on share based awards. Prior to adoption this amount would have been recorded as an increase of capital in excess of par value. This change could create volatility in the Company's effective tax rate. |
• | The Company no longer reflects the cash received from the excess tax benefit within cash flows from financing activities but instead now reflects this benefit within cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. |
• | The Company elected not to change its policy on accounting for forfeitures and continues to estimate the total number of awards for which the requisite service period will not be rendered. |
• | The Company’s statutory withholding requirements have been updated to allow withholding up to the Company's maximum statutory withholding requirements in relevant jurisdictions. |
• | The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share for the three and six months ended December 30, 2016. This increased diluted weighted average common shares outstanding by 147 and 85 shares, respectively, for the periods. |
|
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Restricted investments: | |||||||||||||||
Mutual funds | $ | 49 | $ | — | $ | — | $ | 49 | |||||||
Certificates of deposit | — | 105 | — | 105 | |||||||||||
Municipal bonds | — | 532 | — | 532 | |||||||||||
Corporate bonds | — | 256 | — | 256 | |||||||||||
U.S. Government bonds | — | 216 | — | 216 | |||||||||||
U.S. Treasury Notes | 1,937 | — | — | 1,937 | |||||||||||
Money market accounts and cash deposits | 6,377 | — | — | 6,377 | |||||||||||
Total assets | $ | 8,363 | $ | 1,109 | $ | — | $ | 9,472 | |||||||
Contingent consideration | $ | — | $ | — | $ | 90 | $ | 90 | |||||||
Total liabilities | $ | — | $ | — | $ | 90 | $ | 90 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Restricted investments: | |||||||||||||||
Mutual funds | $ | 71 | $ | — | $ | — | $ | 71 | |||||||
Certificates of deposit | — | 107 | — | 107 | |||||||||||
Municipal bonds | — | 547 | — | 547 | |||||||||||
Corporate bonds | — | 439 | — | 439 | |||||||||||
U.S. Government bonds | — | 219 | — | 219 | |||||||||||
U.S. Treasury Notes | 2,009 | — | — | 2,009 | |||||||||||
Money market accounts and cash deposits | 6,476 | — | — | 6,476 | |||||||||||
Total assets | $ | 8,556 | $ | 1,312 | $ | — | $ | 9,868 | |||||||
Contingent consideration | $ | — | $ | — | $ | 233 | $ | 233 | |||||||
Total liabilities | $ | — | $ | — | $ | 233 | $ | 233 |
Contingent consideration balance at July 1, 2016 | $ | 233 | |
Decrease of liability related to re-measurement of fair value | (143 | ) | |
Contingent consideration balance at December 30, 2016 | $ | 90 |
|
Three Months Ended | Six Months Ended | |||||||||||||||
December 30, 2016 | December 25, 2015 | December 30, 2016 | December 25, 2015 | |||||||||||||
Cost of services | $ | 1,283 | $ | 802 | $ | 1,990 | $ | 1,449 | ||||||||
General and administrative expenses | 1,003 | 709 | 1,753 | 1,331 | ||||||||||||
Total stock-based compensation expense | $ | 2,286 | $ | 1,511 | $ | 3,743 | $ | 2,780 |
Weighted- | ||||||||||||
Average | ||||||||||||
Weighted- | Remaining | |||||||||||
Average | Contractual | Aggregate | ||||||||||
Exercise | Term | Intrinsic | ||||||||||
Options | Price | (in years) | Value | |||||||||
Outstanding options as of June 30, 2016 (85 exercisable) | 85 | $ | 8.28 | |||||||||
Options exercised | (72 | ) | $ | 8.96 | ||||||||
Options expired | (1 | ) | $ | 9.80 | ||||||||
Outstanding options as of December 30, 2016 | 12 | $ | 4.20 | 1.5 | $ | 78 | ||||||
Options exercisable as of December 30, 2016 | 12 | $ | 4.20 | 1.5 | $ | 78 | ||||||
Options vested and expected to vest as of December 30, 2016 | 12 | $ | 4.20 | 1.5 | $ | 78 |
Weighted- | ||||||
Restricted | Average | |||||
Stock | Grant Date | |||||
Units | Fair Value | |||||
Non-vested units as of June 30, 2016 | 904 | $ | 8.24 | |||
Units granted | 595 | $ | 6.78 | |||
Units vested | (338 | ) | $ | 8.05 | ||
Units forfeited | (30 | ) | $ | 10.41 | ||
Non-vested units as of December 30, 2016 | 1,131 | $ | 7.47 |
Weighted- | ||||||||||||
PSU | Total | Average | ||||||||||
Original | PSU | PSU | Grant Date | |||||||||
Awards | Adjustments (1) | Awards | Fair Value | |||||||||
Non-vested units as of June 30, 2016 | 895 | — | 895 | $ | 8.74 | |||||||
Units granted | 512 | 56 | 568 | $ | 6.15 | |||||||
Units vested | (320 | ) | (56 | ) | (376 | ) | $ | 7.75 | ||||
Units forfeited | (89 | ) | — | (89 | ) | $ | 9.70 | |||||
Non-vested units as of December 30, 2016 | 998 | — | 998 | $ | 7.59 | |||||||
(1) | Represents the additional number of PSU's issued based on the final performance condition achieved at the end of the respective performance period. |
|
December 30, 2016 | June 30, 2016 | |||||||
Billed | $ | 116,578 | $ | 90,194 | ||||
Unbilled | 62,333 | 64,954 | ||||||
Retainage | 3,727 | 2,429 | ||||||
Total accounts receivable - gross | 182,638 | 157,577 | ||||||
Less allowance for doubtful accounts | (8,423 | ) | (8,297 | ) | ||||
Total accounts receivable, less allowance for doubtful accounts | $ | 174,215 | $ | 149,280 |
|
December 30, 2016 | June 30, 2016 | |||||||
Contract costs | $ | 40,652 | $ | 40,343 | ||||
Legal accruals | 6,389 | 5,232 | ||||||
Lease obligations | 5,162 | 5,564 | ||||||
Other | 7,593 | 6,887 | ||||||
Total other accrued liabilities | $ | 59,796 | $ | 58,026 |
|
November 30, 2015 (As Initially Reported) | Measurement Period Adjustments | November 30, 2015 (As Adjusted) | ||||||||||||
Cash and cash equivalents | $ | 355 | $ | — | $ | 355 | ||||||||
Accounts receivable | 26,406 | 1,857 | 28,263 | |||||||||||
Prepaid expenses and other current assets | 7,276 | (48 | ) | 7,228 | ||||||||||
Property and equipment | 3,552 | — | 3,552 | |||||||||||
Identifiable intangible assets: | ||||||||||||||
Customer relationships and backlog | 43,500 | — | 43,500 | |||||||||||
Internally developed software | 1,000 | — | 1,000 | |||||||||||
Total identifiable intangible assets | 44,500 | — | 44,500 | |||||||||||
Goodwill | 64,673 | (4,379 | ) | 60,294 | ||||||||||
Other non-current assets | 20,683 | — | 20,683 | |||||||||||
Accounts payable | (2,587 | ) | 43 | (2,544 | ) | |||||||||
Accrued compensation and benefits | (7,199 | ) | (2 | ) | (7,201 | ) | ||||||||
Other accrued liabilities | (5,210 | ) | 100 | (5,110 | ) | |||||||||
Current portion of long-term debt | (6,447 | ) | (38 | ) | (6,485 | ) | ||||||||
Long-term debt, net of current portion | (18,547 | ) | — | (18,547 | ) | |||||||||
Non-controlling interest | — | (490 | ) | (490 | ) | |||||||||
Net assets acquired | $ | 127,455 | $ | (2,957 | ) | $ | 124,498 |
Six Months Ended | ||||
December 25, 2015 | ||||
Gross revenue | $ | 368,254 | ||
Net service revenue | $ | 262,121 | ||
Net income applicable to TRC Companies, Inc. | $ | 6,419 | ||
Basic earnings per common share | $ | 0.21 | ||
Diluted earnings per common share | $ | 0.20 |
Gross | Gross | |||||||||||||||||||||||||||
Balance, | Accumulated | Balance, | Balance, | Accumulated | Balance, | |||||||||||||||||||||||
July 1, | Impairment | July 1, | Additions / | December 30, | Impairment | December 30, | ||||||||||||||||||||||
Operating Segment | 2016 | Losses | 2016 | Adjustments | 2016 | Losses | 2016 | |||||||||||||||||||||
Power | $ | 28,506 | $ | (14,506 | ) | $ | 14,000 | $ | — | $ | 28,506 | $ | (14,506 | ) | $ | 14,000 | ||||||||||||
Environmental | 40,889 | (17,865 | ) | 23,024 | — | 40,889 | (17,865 | ) | 23,024 | |||||||||||||||||||
Infrastructure | 7,224 | (7,224 | ) | — | — | 7,224 | (7,224 | ) | — | |||||||||||||||||||
Oil and Gas | 60,294 | (21,981 | ) | 38,313 | — | 60,294 | (21,981 | ) | 38,313 | |||||||||||||||||||
$ | 136,913 | $ | (61,576 | ) | $ | 75,337 | $ | — | $ | 136,913 | $ | (61,576 | ) | $ | 75,337 |
December 30, 2016 | June 30, 2016 | |||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||
Identifiable intangible assets | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||
With determinable lives: | ||||||||||||||||||||||||
Customer relationships | $ | 59,218 | $ | (19,791 | ) | $ | 39,427 | $ | 59,218 | $ | (14,933 | ) | $ | 44,285 | ||||||||||
Contract backlog | 900 | (900 | ) | — | 900 | (525 | ) | 375 | ||||||||||||||||
Technology | 1,000 | (217 | ) | 783 | 1,000 | (117 | ) | 883 | ||||||||||||||||
61,118 | (20,908 | ) | 40,210 | 61,118 | (15,575 | ) | 45,543 | |||||||||||||||||
With indefinite lives: | ||||||||||||||||||||||||
Engineering licenses | 426 | — | 426 | 426 | — | 426 | ||||||||||||||||||
$ | 61,544 | $ | (20,908 | ) | $ | 40,636 | $ | 61,544 | $ | (15,575 | ) | $ | 45,969 |
Fiscal Year | Amount | ||||
2017 | $ | 4,826 | |||
2018 | 9,183 | ||||
2019 | 8,367 | ||||
2020 | 7,821 | ||||
2021 | 7,274 | ||||
2022 and Thereafter | 2,739 | ||||
Total | $ | 40,210 |
|
Current portion of Term Loan | $ | 5,625 | ||
Long-term portion of Term Loan | $ | 63,750 | ||
Less: Debt issuance costs | (1,000 | ) | ||
Net long-term carrying amount | $ | 62,750 |
2017 | $ | 2,813 | |||
2018 | 5,625 | ||||
2019 | 5,625 | ||||
2020 | 5,625 | ||||
2021 | 49,687 | ||||
Total | $ | 69,375 |
2017 | $ | 4,271 | |||
2018 | 5,734 | ||||
2019 | 3,717 | ||||
2020 | 3,980 | ||||
2021 | 1,388 | ||||
Total | $ | 19,090 |
|
|
|
Power | Environmental | Infrastructure | Oil & Gas | Total | ||||||||||||||||
Three months ended December 30, 2016: | ||||||||||||||||||||
Gross revenue | $ | 67,860 | $ | 80,162 | $ | 21,442 | $ | 27,483 | $ | 196,947 | ||||||||||
Net service revenue | 40,288 | 50,325 | 14,618 | 21,332 | 126,563 | |||||||||||||||
Segment profit | 9,501 | 9,184 | 3,474 | 1,467 | 23,626 | |||||||||||||||
Depreciation | 438 | 657 | 139 | 311 | 1,545 | |||||||||||||||
Amortization | 245 | 254 | — | 1,992 | 2,491 | |||||||||||||||
Three months ended December 25, 2015: | ||||||||||||||||||||
Gross revenue | $ | 48,040 | $ | 77,925 | $ | 22,307 | $ | 8,017 | $ | 156,289 | ||||||||||
Net service revenue | 39,794 | 51,424 | 13,709 | 5,986 | 110,913 | |||||||||||||||
Segment profit (loss) | 9,470 | 9,548 | 2,532 | (1,161 | ) | 20,389 | ||||||||||||||
Depreciation | 492 | 638 | 125 | 267 | 1,522 | |||||||||||||||
Amortization | 298 | 300 | — | 302 | 900 |
Power | Environmental | Infrastructure | Oil & Gas | Total | ||||||||||||||||
Six months ended December 30, 2016: | ||||||||||||||||||||
Gross revenue | $ | 124,854 | $ | 154,098 | $ | 44,355 | $ | 54,121 | $ | 377,428 | ||||||||||
Net service revenue | 77,388 | 99,219 | 31,249 | 42,671 | 250,527 | |||||||||||||||
Segment profit | 17,468 | 18,236 | 7,782 | 2,838 | 46,324 | |||||||||||||||
Depreciation | 881 | 1,301 | 277 | 663 | 3,122 | |||||||||||||||
Amortization | 493 | 528 | — | 4,059 | 5,080 | |||||||||||||||
Six months ended December 25, 2015: | ||||||||||||||||||||
Gross revenue | $ | 87,276 | $ | 153,768 | $ | 42,277 | $ | 8,017 | $ | 291,338 | ||||||||||
Net service revenue | 74,132 | 102,988 | 27,272 | 5,986 | 210,378 | |||||||||||||||
Segment profit (loss) | 16,782 | 19,529 | 5,425 | (1,161 | ) | 40,575 | ||||||||||||||
Depreciation | 956 | 1,262 | 222 | 267 | 2,707 | |||||||||||||||
Amortization | 599 | 665 | — | 302 | 1,566 |
Three Months Ended | Six Months Ended | |||||||||||||||
Gross revenue | December 30, 2016 | December 25, 2015 | December 30, 2016 | December 25, 2015 | ||||||||||||
Gross revenue from reportable operating segments | $ | 196,947 | $ | 156,289 | $ | 377,428 | $ | 291,338 | ||||||||
Reconciling items (1) | 1,715 | 1,454 | 2,085 | 1,864 | ||||||||||||
Total consolidated gross revenue | $ | 198,662 | $ | 157,743 | $ | 379,513 | $ | 293,202 | ||||||||
Net service revenue | ||||||||||||||||
Net service revenue from reportable operating segments | $ | 126,563 | $ | 110,913 | $ | 250,527 | $ | 210,378 | ||||||||
Reconciling items (1) | 793 | 469 | 1,134 | 1,167 | ||||||||||||
Total consolidated net service revenue | $ | 127,356 | $ | 111,382 | $ | 251,661 | $ | 211,545 | ||||||||
Income from operations before taxes | ||||||||||||||||
Segment profit from reportable operating segments | $ | 23,626 | $ | 20,389 | $ | 46,324 | $ | 40,575 | ||||||||
Corporate shared services (2) | (13,969 | ) | (10,582 | ) | (28,915 | ) | (20,535 | ) | ||||||||
Stock-based compensation expense | (2,286 | ) | (1,511 | ) | (3,743 | ) | (2,780 | ) | ||||||||
Unallocated acquisition and integration expenses | — | (1,240 | ) | — | (2,118 | ) | ||||||||||
Unallocated depreciation and amortization | (335 | ) | (358 | ) | (673 | ) | (771 | ) | ||||||||
Interest income | 286 | 137 | 564 | 137 | ||||||||||||
Interest expense | (841 | ) | (461 | ) | (1,686 | ) | (489 | ) | ||||||||
Total consolidated income from operations before taxes | $ | 6,481 | $ | 6,374 | $ | 11,871 | $ | 14,019 | ||||||||
Acquisition and integration expenses | ||||||||||||||||
Acquisition and integration expenses from reportable operating segments | $ | — | $ | — | $ | — | $ | — | ||||||||
Unallocated acquisition and integration expenses | — | 1,240 | — | 2,118 | ||||||||||||
Total consolidated acquisition and integration expenses | $ | — | $ | 1,240 | $ | — | $ | 2,118 | ||||||||
Depreciation and amortization | ||||||||||||||||
Depreciation and amortization from reportable operating segments | $ | 4,036 | $ | 2,422 | $ | 8,202 | $ | 4,273 | ||||||||
Unallocated depreciation and amortization | 335 | 358 | 673 | 771 | ||||||||||||
Total consolidated depreciation and amortization | $ | 4,371 | $ | 2,780 | $ | 8,875 | $ | 5,044 | ||||||||
(1) | Amounts represent certain unallocated corporate amounts not considered in the CODM's evaluation of operating segment performance. |
(2) | Corporate shared services consist of centrally managed functions in the following areas: accounting, treasury, information technology, legal, human resources, marketing, internal audit and executive management such as the CEO and various executives. These costs and other items of a general corporate nature are not allocated to the Company’s four operating segments. |
|
|
|
• | The Company recorded a net tax benefit of $27 and $21 within income tax expense for the three and six months ended December 30, 2016, respectively, related to net tax windfalls on share based awards. Prior to adoption this amount would have been recorded as an increase of capital in excess of par value. This change could create volatility in the Company's effective tax rate. |
• | The Company no longer reflects the cash received from the excess tax benefit within cash flows from financing activities but instead now reflects this benefit within cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. |
• | The Company elected not to change its policy on accounting for forfeitures and continues to estimate the total number of awards for which the requisite service period will not be rendered. |
• | The Company’s statutory withholding requirements have been updated to allow withholding up to the Company's maximum statutory withholding requirements in relevant jurisdictions. |
• | The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share for the three and six months ended December 30, 2016. This increased diluted weighted average common shares outstanding by 147 and 85 shares, respectively, for the periods. |
|
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Restricted investments: | |||||||||||||||
Mutual funds | $ | 49 | $ | — | $ | — | $ | 49 | |||||||
Certificates of deposit | — | 105 | — | 105 | |||||||||||
Municipal bonds | — | 532 | — | 532 | |||||||||||
Corporate bonds | — | 256 | — | 256 | |||||||||||
U.S. Government bonds | — | 216 | — | 216 | |||||||||||
U.S. Treasury Notes | 1,937 | — | — | 1,937 | |||||||||||
Money market accounts and cash deposits | 6,377 | — | — | 6,377 | |||||||||||
Total assets | $ | 8,363 | $ | 1,109 | $ | — | $ | 9,472 | |||||||
Contingent consideration | $ | — | $ | — | $ | 90 | $ | 90 | |||||||
Total liabilities | $ | — | $ | — | $ | 90 | $ | 90 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Restricted investments: | |||||||||||||||
Mutual funds | $ | 71 | $ | — | $ | — | $ | 71 | |||||||
Certificates of deposit | — | 107 | — | 107 | |||||||||||
Municipal bonds | — | 547 | — | 547 | |||||||||||
Corporate bonds | — | 439 | — | 439 | |||||||||||
U.S. Government bonds | — | 219 | — | 219 | |||||||||||
U.S. Treasury Notes | 2,009 | — | — | 2,009 | |||||||||||
Money market accounts and cash deposits | 6,476 | — | — | 6,476 | |||||||||||
Total assets | $ | 8,556 | $ | 1,312 | $ | — | $ | 9,868 | |||||||
Contingent consideration | $ | — | $ | — | $ | 233 | $ | 233 | |||||||
Total liabilities | $ | — | $ | — | $ | 233 | $ | 233 |
Contingent consideration balance at July 1, 2016 | $ | 233 | |
Decrease of liability related to re-measurement of fair value | (143 | ) | |
Contingent consideration balance at December 30, 2016 | $ | 90 |
|
Three Months Ended | Six Months Ended | |||||||||||||||
December 30, 2016 | December 25, 2015 | December 30, 2016 | December 25, 2015 | |||||||||||||
Cost of services | $ | 1,283 | $ | 802 | $ | 1,990 | $ | 1,449 | ||||||||
General and administrative expenses | 1,003 | 709 | 1,753 | 1,331 | ||||||||||||
Total stock-based compensation expense | $ | 2,286 | $ | 1,511 | $ | 3,743 | $ | 2,780 |
Weighted- | ||||||||||||
Average | ||||||||||||
Weighted- | Remaining | |||||||||||
Average | Contractual | Aggregate | ||||||||||
Exercise | Term | Intrinsic | ||||||||||
Options | Price | (in years) | Value | |||||||||
Outstanding options as of June 30, 2016 (85 exercisable) | 85 | $ | 8.28 | |||||||||
Options exercised | (72 | ) | $ | 8.96 | ||||||||
Options expired | (1 | ) | $ | 9.80 | ||||||||
Outstanding options as of December 30, 2016 | 12 | $ | 4.20 | 1.5 | $ | 78 | ||||||
Options exercisable as of December 30, 2016 | 12 | $ | 4.20 | 1.5 | $ | 78 | ||||||
Options vested and expected to vest as of December 30, 2016 | 12 | $ | 4.20 | 1.5 | $ | 78 |
Weighted- | ||||||
Restricted | Average | |||||
Stock | Grant Date | |||||
Units | Fair Value | |||||
Non-vested units as of June 30, 2016 | 904 | $ | 8.24 | |||
Units granted | 595 | $ | 6.78 | |||
Units vested | (338 | ) | $ | 8.05 | ||
Units forfeited | (30 | ) | $ | 10.41 | ||
Non-vested units as of December 30, 2016 | 1,131 | $ | 7.47 |
Weighted- | ||||||||||||
PSU | Total | Average | ||||||||||
Original | PSU | PSU | Grant Date | |||||||||
Awards | Adjustments (1) | Awards | Fair Value | |||||||||
Non-vested units as of June 30, 2016 | 895 | — | 895 | $ | 8.74 | |||||||
Units granted | 512 | 56 | 568 | $ | 6.15 | |||||||
Units vested | (320 | ) | (56 | ) | (376 | ) | $ | 7.75 | ||||
Units forfeited | (89 | ) | — | (89 | ) | $ | 9.70 | |||||
Non-vested units as of December 30, 2016 | 998 | — | 998 | $ | 7.59 | |||||||
(1) | Represents the additional number of PSU's issued based on the final performance condition achieved at the end of the respective performance period. |
|
December 30, 2016 | June 30, 2016 | |||||||
Billed | $ | 116,578 | $ | 90,194 | ||||
Unbilled | 62,333 | 64,954 | ||||||
Retainage | 3,727 | 2,429 | ||||||
Total accounts receivable - gross | 182,638 | 157,577 | ||||||
Less allowance for doubtful accounts | (8,423 | ) | (8,297 | ) | ||||
Total accounts receivable, less allowance for doubtful accounts | $ | 174,215 | $ | 149,280 |
|
December 30, 2016 | June 30, 2016 | |||||||
Contract costs | $ | 40,652 | $ | 40,343 | ||||
Legal accruals | 6,389 | 5,232 | ||||||
Lease obligations | 5,162 | 5,564 | ||||||
Other | 7,593 | 6,887 | ||||||
Total other accrued liabilities | $ | 59,796 | $ | 58,026 |
|
November 30, 2015 (As Initially Reported) | Measurement Period Adjustments | November 30, 2015 (As Adjusted) | ||||||||||||
Cash and cash equivalents | $ | 355 | $ | — | $ | 355 | ||||||||
Accounts receivable | 26,406 | 1,857 | 28,263 | |||||||||||
Prepaid expenses and other current assets | 7,276 | (48 | ) | 7,228 | ||||||||||
Property and equipment | 3,552 | — | 3,552 | |||||||||||
Identifiable intangible assets: | ||||||||||||||
Customer relationships and backlog | 43,500 | — | 43,500 | |||||||||||
Internally developed software | 1,000 | — | 1,000 | |||||||||||
Total identifiable intangible assets | 44,500 | — | 44,500 | |||||||||||
Goodwill | 64,673 | (4,379 | ) | 60,294 | ||||||||||
Other non-current assets | 20,683 | — | 20,683 | |||||||||||
Accounts payable | (2,587 | ) | 43 | (2,544 | ) | |||||||||
Accrued compensation and benefits | (7,199 | ) | (2 | ) | (7,201 | ) | ||||||||
Other accrued liabilities | (5,210 | ) | 100 | (5,110 | ) | |||||||||
Current portion of long-term debt | (6,447 | ) | (38 | ) | (6,485 | ) | ||||||||
Long-term debt, net of current portion | (18,547 | ) | — | (18,547 | ) | |||||||||
Non-controlling interest | — | (490 | ) | (490 | ) | |||||||||
Net assets acquired | $ | 127,455 | $ | (2,957 | ) | $ | 124,498 |
Six Months Ended | ||||
December 25, 2015 | ||||
Gross revenue | $ | 368,254 | ||
Net service revenue | $ | 262,121 | ||
Net income applicable to TRC Companies, Inc. | $ | 6,419 | ||
Basic earnings per common share | $ | 0.21 | ||
Diluted earnings per common share | $ | 0.20 |
Gross | Gross | |||||||||||||||||||||||||||
Balance, | Accumulated | Balance, | Balance, | Accumulated | Balance, | |||||||||||||||||||||||
July 1, | Impairment | July 1, | Additions / | December 30, | Impairment | December 30, | ||||||||||||||||||||||
Operating Segment | 2016 | Losses | 2016 | Adjustments | 2016 | Losses | 2016 | |||||||||||||||||||||
Power | $ | 28,506 | $ | (14,506 | ) | $ | 14,000 | $ | — | $ | 28,506 | $ | (14,506 | ) | $ | 14,000 | ||||||||||||
Environmental | 40,889 | (17,865 | ) | 23,024 | — | 40,889 | (17,865 | ) | 23,024 | |||||||||||||||||||
Infrastructure | 7,224 | (7,224 | ) | — | — | 7,224 | (7,224 | ) | — | |||||||||||||||||||
Oil and Gas | 60,294 | (21,981 | ) | 38,313 | — | 60,294 | (21,981 | ) | 38,313 | |||||||||||||||||||
$ | 136,913 | $ | (61,576 | ) | $ | 75,337 | $ | — | $ | 136,913 | $ | (61,576 | ) | $ | 75,337 |
December 30, 2016 | June 30, 2016 | |||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||
Identifiable intangible assets | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||
With determinable lives: | ||||||||||||||||||||||||
Customer relationships | $ | 59,218 | $ | (19,791 | ) | $ | 39,427 | $ | 59,218 | $ | (14,933 | ) | $ | 44,285 | ||||||||||
Contract backlog | 900 | (900 | ) | — | 900 | (525 | ) | 375 | ||||||||||||||||
Technology | 1,000 | (217 | ) | 783 | 1,000 | (117 | ) | 883 | ||||||||||||||||
61,118 | (20,908 | ) | 40,210 | 61,118 | (15,575 | ) | 45,543 | |||||||||||||||||
With indefinite lives: | ||||||||||||||||||||||||
Engineering licenses | 426 | — | 426 | 426 | — | 426 | ||||||||||||||||||
$ | 61,544 | $ | (20,908 | ) | $ | 40,636 | $ | 61,544 | $ | (15,575 | ) | $ | 45,969 |
Fiscal Year | Amount | ||||
2017 | $ | 4,826 | |||
2018 | 9,183 | ||||
2019 | 8,367 | ||||
2020 | 7,821 | ||||
2021 | 7,274 | ||||
2022 and Thereafter | 2,739 | ||||
Total | $ | 40,210 |
|
Current portion of Term Loan | $ | 5,625 | ||
Long-term portion of Term Loan | $ | 63,750 | ||
Less: Debt issuance costs | (1,000 | ) | ||
Net long-term carrying amount | $ | 62,750 |
2017 | $ | 2,813 | |||
2018 | 5,625 | ||||
2019 | 5,625 | ||||
2020 | 5,625 | ||||
2021 | 49,687 | ||||
Total | $ | 69,375 |
2017 | $ | 4,271 | |||
2018 | 5,734 | ||||
2019 | 3,717 | ||||
2020 | 3,980 | ||||
2021 | 1,388 | ||||
Total | $ | 19,090 |
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Power | Environmental | Infrastructure | Oil & Gas | Total | ||||||||||||||||
Three months ended December 30, 2016: | ||||||||||||||||||||
Gross revenue | $ | 67,860 | $ | 80,162 | $ | 21,442 | $ | 27,483 | $ | 196,947 | ||||||||||
Net service revenue | 40,288 | 50,325 | 14,618 | 21,332 | 126,563 | |||||||||||||||
Segment profit | 9,501 | 9,184 | 3,474 | 1,467 | 23,626 | |||||||||||||||
Depreciation | 438 | 657 | 139 | 311 | 1,545 | |||||||||||||||
Amortization | 245 | 254 | — | 1,992 | 2,491 | |||||||||||||||
Three months ended December 25, 2015: | ||||||||||||||||||||
Gross revenue | $ | 48,040 | $ | 77,925 | $ | 22,307 | $ | 8,017 | $ | 156,289 | ||||||||||
Net service revenue | 39,794 | 51,424 | 13,709 | 5,986 | 110,913 | |||||||||||||||
Segment profit (loss) | 9,470 | 9,548 | 2,532 | (1,161 | ) | 20,389 | ||||||||||||||
Depreciation | 492 | 638 | 125 | 267 | 1,522 | |||||||||||||||
Amortization | 298 | 300 | — | 302 | 900 |
Power | Environmental | Infrastructure | Oil & Gas | Total | ||||||||||||||||
Six months ended December 30, 2016: | ||||||||||||||||||||
Gross revenue | $ | 124,854 | $ | 154,098 | $ | 44,355 | $ | 54,121 | $ | 377,428 | ||||||||||
Net service revenue | 77,388 | 99,219 | 31,249 | 42,671 | 250,527 | |||||||||||||||
Segment profit | 17,468 | 18,236 | 7,782 | 2,838 | 46,324 | |||||||||||||||
Depreciation | 881 | 1,301 | 277 | 663 | 3,122 | |||||||||||||||
Amortization | 493 | 528 | — | 4,059 | 5,080 | |||||||||||||||
Six months ended December 25, 2015: | ||||||||||||||||||||
Gross revenue | $ | 87,276 | $ | 153,768 | $ | 42,277 | $ | 8,017 | $ | 291,338 | ||||||||||
Net service revenue | 74,132 | 102,988 | 27,272 | 5,986 | 210,378 | |||||||||||||||
Segment profit (loss) | 16,782 | 19,529 | 5,425 | (1,161 | ) | 40,575 | ||||||||||||||
Depreciation | 956 | 1,262 | 222 | 267 | 2,707 | |||||||||||||||
Amortization | 599 | 665 | — | 302 | 1,566 |
Three Months Ended | Six Months Ended | |||||||||||||||
Gross revenue | December 30, 2016 | December 25, 2015 | December 30, 2016 | December 25, 2015 | ||||||||||||
Gross revenue from reportable operating segments | $ | 196,947 | $ | 156,289 | $ | 377,428 | $ | 291,338 | ||||||||
Reconciling items (1) | 1,715 | 1,454 | 2,085 | 1,864 | ||||||||||||
Total consolidated gross revenue | $ | 198,662 | $ | 157,743 | $ | 379,513 | $ | 293,202 | ||||||||
Net service revenue | ||||||||||||||||
Net service revenue from reportable operating segments | $ | 126,563 | $ | 110,913 | $ | 250,527 | $ | 210,378 | ||||||||
Reconciling items (1) | 793 | 469 | 1,134 | 1,167 | ||||||||||||
Total consolidated net service revenue | $ | 127,356 | $ | 111,382 | $ | 251,661 | $ | 211,545 | ||||||||
Income from operations before taxes | ||||||||||||||||
Segment profit from reportable operating segments | $ | 23,626 | $ | 20,389 | $ | 46,324 | $ | 40,575 | ||||||||
Corporate shared services (2) | (13,969 | ) | (10,582 | ) | (28,915 | ) | (20,535 | ) | ||||||||
Stock-based compensation expense | (2,286 | ) | (1,511 | ) | (3,743 | ) | (2,780 | ) | ||||||||
Unallocated acquisition and integration expenses | — | (1,240 | ) | — | (2,118 | ) | ||||||||||
Unallocated depreciation and amortization | (335 | ) | (358 | ) | (673 | ) | (771 | ) | ||||||||
Interest income | 286 | 137 | 564 | 137 | ||||||||||||
Interest expense | (841 | ) | (461 | ) | (1,686 | ) | (489 | ) | ||||||||
Total consolidated income from operations before taxes | $ | 6,481 | $ | 6,374 | $ | 11,871 | $ | 14,019 | ||||||||
Acquisition and integration expenses | ||||||||||||||||
Acquisition and integration expenses from reportable operating segments | $ | — | $ | — | $ | — | $ | — | ||||||||
Unallocated acquisition and integration expenses | — | 1,240 | — | 2,118 | ||||||||||||
Total consolidated acquisition and integration expenses | $ | — | $ | 1,240 | $ | — | $ | 2,118 | ||||||||
Depreciation and amortization | ||||||||||||||||
Depreciation and amortization from reportable operating segments | $ | 4,036 | $ | 2,422 | $ | 8,202 | $ | 4,273 | ||||||||
Unallocated depreciation and amortization | 335 | 358 | 673 | 771 | ||||||||||||
Total consolidated depreciation and amortization | $ | 4,371 | $ | 2,780 | $ | 8,875 | $ | 5,044 | ||||||||
(1) | Amounts represent certain unallocated corporate amounts not considered in the CODM's evaluation of operating segment performance. |
(2) | Corporate shared services consist of centrally managed functions in the following areas: accounting, treasury, information technology, legal, human resources, marketing, internal audit and executive management such as the CEO and various executives. These costs and other items of a general corporate nature are not allocated to the Company’s four operating segments. |
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