Q1 Fiscal 2015 Investor Review
November 4, 2014
TRR
Chris Vincze Tom Bennet
Chairman & CEO Chief Financial Officer
Safe Harbor Statement
2
Certain statements in this presentation may be forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these statements by forward-looking words such as
"may," "expects," "plans," "anticipates," "believes," "estimates," or other words of similar import. You should consider statements that
contain these words carefully because they discuss TRC’s future expectations, contain projections of the Company’s future results of
operations or of its financial condition, or state other "forward-looking" information. TRC believes that it is important to communicate
its future expectations to its investors. However, there may be events in the future that the Company is not able to accurately predict
or control and that may cause its actual results to differ materially from the expectations described in its forward-looking statements.
Investors are cautioned that all forward-looking statements involve risks and uncertainties, and actual results may differ materially
from those discussed as a result of various factors, including, but not limited to, the uncertainty of TRC’s operational and growth
strategies; circumstances which could create large cash outflows, such as contract losses, litigation, uncollectible receivables and
income tax assessments; regulatory uncertainty; the availability of funding for government projects; the level of demand for TRC’s
services; product acceptance; industry-wide competitive factors; the ability to continue to attract and retain highly skilled and qualified
personnel; the availability and adequacy of insurance; and general political or economic conditions. Furthermore, market trends are
subject to changes which could adversely affect future results. See the risk factors and additional discussion in TRC’s Annual Report on
Form 10-K for the fiscal year ended June 30, 2014, Quarterly Reports on Form 10-Q, and other factors detailed from time to time in the
Company’s other filings with the Securities and Exchange Commission.
These slides are intended as a visual aid to TRC’s commentary on the First Quarter Fiscal Year 2015 Financial Results Conference Call.
As such they should be considered in the full context of that commentary, the transcript of that conference call and TRC’s first quarter
Form 10-Q and Financial Results Press Release. Also, this presentation contains references to non-GAAP metrics such as EBITDA, gross
margin and free cash flow. A reconciliation of GAAP to non-GAAP metrics can be found on slide 14.
Q1 Fiscal 2015 Overview
3
NSR1 increased 14% YOY to $92.6M
Energy +15%, Environmental +24%, Infrastructure +4%
Growth: 77% Organic, 23% from Acquisitions
Operating income increased 41% YOY to $6.0M
NSR backlog increased 9% YOY to $260.0M
Energy +25%, Environmental +2%, Infrastructure +4%
(1) TRC believes net service revenue (gross revenue less subcontractor costs and other direct reimbursable charges) best reflects the value of
services provided to its customers and is the most meaningful indicator of its revenue performance.
EBITDA increased 30% YOY to $8.3M
Net income increased 40% YOY to $3.5M
EnvironmentalSegment
4
Q1 Fiscal 2015 Results
 NSR +24% YOY
 Continued development of upstream, midstream and downstream
oil & gas markets
 Increased demand for remediation and pipeline permitting services
 Segment profit +9% YOY
$38.4
$47.7
Q1 2014 Q1 2015
Net Service Revenue (in millions)
$9.3
$10.2
Q1 2014 Q1 2015
Segment Profit (in millions)
+24% +9%
EnergySegment
5
Q1 Fiscal 2015 Results
 NSR +15% YOY
 Expanding utility capital spend programs on aging transmission and
distribution infrastructure
 Growing geographic presence
 Segment profit +38% YOY
 Improved labor utilization
$28.8
$33.2
Q1 2014 Q1 2015
Net Service Revenue (in millions)
$4.1
$5.6
Q1 2014 Q1 2015
Segment Profit (in millions)
+38%+15%
InfrastructureSegment
6
Q1 Fiscal 2015 Results
 NSR +4% YOY
 Healthier State and municipal budgets providing for more
transportation projects
 Segment profit -20% YOY
 Contract scope changes under negotiation
$12.6 $13.1
Q1 2014 Q1 2015
Net Service Revenue(in millions)
$2.8
$2.3
Q1 2014 Q1 2015
Segment Profit (in millions)
+4%
-20%
$45 $47 $47
$69 $83 $86
$125
$127 $127
Q1 2014 Q4 2014 Q1 2015
Segment NSR Backlog
NSR Backlog & New Project Wins
7
(in millions)
Energy
• PSE&G
• Excelon
Environmental
• Confidential mid-stream
oil & gas client
• Spectra Energy
Infrastructure
• PennDOT
• VDOT
$239
$260$257
8
Growth Strategy
0%
5%
10%
15%
20%
25%
Q2 2014 Q3 2014 Q4 2014 Q1 2015
Total
Organic
Total & Organic NSR Growth Recent Acquisitions
NOVA Safety & Environmental (September 2014)
Covino Environmental Associates (July 2014)
EMCOR Energy Services, Inc. (January 2014)
Utility Support Systems, Inc. (July 2013)
• Investing in high-margin organic growth opportunities
• Pursuing strategic acquisitions to expand our platform in key North American markets
9
NOVA Safety & Environmental (NOVA)
• Acquired in September 2014
• Strengthens TRC’s position in robust oil and gas market
• Provides safety training, environmental services, oil spill response,
remediation and general oil field construction services
• Enhances presence in Permian Basin region of West Texas and
New Mexico
• Profitable and growing company with impeccable safety record
• Approximately 60 employees
• Gross revenues of $16.5 million in 2013
• Based in Midland, TX
Summary and Key Initiatives
10
• Consistently improving financial performance
• Invest in organic growth opportunities
• Increase focus on strategic markets:
• Oil & Gas – Market provides expansive opportunities
• Utility/Power – Aging and inefficient transmission and distribution
systems require long-term capital investments
• Transportation – National transportation and energy delivery
systems need to be modernized
• Continue to pursue strategic acquisitions that provide geographic
expansion and enhanced technical capabilities
$81.3
$92.6
Q1 2014 Q1 2015
Net Service Revenue (in millions)
Quarterly Financial Results Overview
11
$6.4
$8.3
Q1 2014 Q1 2015
EBITDA(in millions)
$4.3
$6.0
Q1 2014 Q1 2015
Operating Income (in millions)
+14%
+41%
+30%
$0.08
$0.11
Q1 2014 Q1 2015
Diluted EPS
+38%
Q1 2015
$92.6
$4.8
$81.2
12.3%
$8.0
$6.0
$8.3
9.0%
$3.5
$0.11
Q1 2014
$81.3
$12.3
$78.4
3.5%
$8.8
$4.3
$6.4
7.9%
$2.5
$0.08
12
(In millions, except per share data)
Quarterly Income Statement Highlights
$81.3
$92.6
96.5%
87.7%
Q1 2014 Q1 2015
Cost of Services as % of NSR
$81.3
$92.6
10.8%
8.7%
Q1 2014 Q1 2015
G&A Expenses as % of NSR
Exit Strategy Activity
Q1 2014 Q1 2015
Net Service Revenue $ (5.1) $ (1.0)
Insurance Recoverables 12.4 4.6
Cost of Services 7.3 4.1
Operating Income $ - $ (0.5)
Net service revenue
Insurance recoverables and other income
Cost of services (COS)
Gross margin %
General and administrative expenses
Operating income
EBITDA
EBITDA as a % of NSR
Net income
Diluted earnings per common share
13
Balance Sheet Highlights
Cash and cash equivalents
Days sales outstanding (DSO)
Cash Flow Highlights
Cash flow from operations
Capital expenditures
Free cash flow
Q1 2014
$22.0
95 days
$1.1
$(1.6)
$(0.5)
Q1 2015
$28.8
92 days
$2.5
$(1.4)
$1.1
(In millions)
Balance Sheet and Cash Flow Highlights
Announced $10 million share repurchase program
Reconciliation of Non-GAAP Measures
14
In millions
Q1 - 2014 Q1 - 2015
Net income applicable to TRC Companies, Inc.'s common shareholders $2.5 $3.5
Interest expense 0.1 0.0
Federal and state income tax provision 1.7 2.5
Depreciation and amortization 2.1 2.3
Net loss applicable to noncontrolling interest 0.0 0.0
Consolidated EBITDA $6.4 $8.3
In millions
Q1 - 2014 Q1 - 2015
Net service revenue $81.3 $92.6
Cost of services 78.4 81.2
Gross Margin $2.9 $11.4
Gross Margin % 3.5% 12.3%
In millions
Q1 - 2014 Q1 - 2015
Cash flow from operations $1.1 $2.5
Additions to property and equipment (1.6) (1.4)
Free Cash Flow $(0.5) $1.1
Earnings Before Interest, Taxes, Depreciation, Amortization
Gross Margin and Gross Margin %
Free Cash Flow
Definitions for Non-GAAP Measures
15
Earnings Before Interest, Taxes, Depreciation, Amortization (EBITDA)
The Company presents EBITDA because it believes that it is a useful tool for the Company, its lender and its
investors to measure the Company’s ability to meet debt service, capital expenditure and working capital
requirements. As used in the presentation, EBITDA is operating income plus depreciation and amortization.
Note that a separate, modified non-GAAP term “Consolidated Adjusted EBITDA” is specified in the Company’s
revolving credit agreement.
Gross Margin and Gross Margin %
The Company presents Gross Margin and Gross Margin % to allow investors to better evaluate short-term and
long-term profitability trends. The definition of Gross Margin is equal to Net Service Revenue less Cost of
Services. Gross Margin % is equal to Gross Margin Divided by Net Service Revenue.
Free Cash Flow
The Company presents free cash flow, and ratios based on it, to conduct and evaluate its business because,
although it is similar to cash flow from operations, the Company believes it is a useful measure of cash flows
since purchases of fixed assets are a necessary component of ongoing operations. The definition of Free Cash
Flow is equal to net cash provided by (used in) operating activities plus additions to property and equipment.

More Related Content

PDF
Trc q4 2015 earnings slides final
PDF
Trc q2 2015 earnings slides final
PDF
Q3 15 earnings slides-final
PPTX
CTEEP Results Presentation 2T15
PDF
Management Investor Presentation - Q2 2015
PDF
Q1 16 slides ugi-v_final
PDF
Inv pres q42014_final
PDF
Q2 2016 earnings call presentation final v2
Trc q4 2015 earnings slides final
Trc q2 2015 earnings slides final
Q3 15 earnings slides-final
CTEEP Results Presentation 2T15
Management Investor Presentation - Q2 2015
Q1 16 slides ugi-v_final
Inv pres q42014_final
Q2 2016 earnings call presentation final v2

What's hot (19)

PDF
CONE Midstream Quarterly Earnings Presentation - May 5, 2016
PDF
Inv pres q22015_final
PDF
Q3 16 slides ugi-v_final
PDF
1 q16 earnings-presentation-final
PDF
Rexnord Corporation (RXN) Q3 Fiscal Year 2020 Financial Results
PDF
Presentation 3Q15 - CPFL Energia
PDF
Ugi investor day combined_v_final
PDF
2q16 earnings presentation-final
PDF
Fourth Quarter 2015 Investor Presentation
PDF
Deutsche Bank Industrials & Basic Materials Conference
PDF
Q4 2015 earnings call presentation final
PDF
Apresentação 3 t15_master_inglês_final v2
PDF
2nd Quarter 2015 Earnings Release Conference Call
PDF
Nielsen Q2 2016 Results
PDF
Q4 2017 earnings call presentation 11.15.17 (final)
PDF
Q2 2015 earnings presentation
PDF
Q2 2017 earnings call presentation v7 (final)
PDF
Q2 16 slides ugi-v_final
PDF
Apresentação 3 t15_master_inglês
CONE Midstream Quarterly Earnings Presentation - May 5, 2016
Inv pres q22015_final
Q3 16 slides ugi-v_final
1 q16 earnings-presentation-final
Rexnord Corporation (RXN) Q3 Fiscal Year 2020 Financial Results
Presentation 3Q15 - CPFL Energia
Ugi investor day combined_v_final
2q16 earnings presentation-final
Fourth Quarter 2015 Investor Presentation
Deutsche Bank Industrials & Basic Materials Conference
Q4 2015 earnings call presentation final
Apresentação 3 t15_master_inglês_final v2
2nd Quarter 2015 Earnings Release Conference Call
Nielsen Q2 2016 Results
Q4 2017 earnings call presentation 11.15.17 (final)
Q2 2015 earnings presentation
Q2 2017 earnings call presentation v7 (final)
Q2 16 slides ugi-v_final
Apresentação 3 t15_master_inglês
Ad

Viewers also liked (20)

PDF
Ir presentation august
PPTX
Ir presentation february
PDF
Investor Relations Overview - May
PDF
First Quarter 2016 Results
PDF
Investor Relations Overview August
PDF
Trc q3 2015 earnings slides final
PDF
Trc q1-2015-earnings-slides-final v001-g61n61
PDF
2 q15 presentation final
PDF
1 q16 presentation final
PPTX
4 q15 external earnings_presentation_2016-02-04_final
PDF
Investor Relations Overview May
PDF
Investor Relations Overview - February
PDF
3 q16 presentation final
PDF
Trc q4 2014 earnings slides final
PDF
Investor Relations Overview - October
PDF
Ir presentation august
PDF
Ir presentation september
PDF
3 q15 presentation final
PPTX
2 q16 presentation
PDF
Investor Relations Overview - November
Ir presentation august
Ir presentation february
Investor Relations Overview - May
First Quarter 2016 Results
Investor Relations Overview August
Trc q3 2015 earnings slides final
Trc q1-2015-earnings-slides-final v001-g61n61
2 q15 presentation final
1 q16 presentation final
4 q15 external earnings_presentation_2016-02-04_final
Investor Relations Overview May
Investor Relations Overview - February
3 q16 presentation final
Trc q4 2014 earnings slides final
Investor Relations Overview - October
Ir presentation august
Ir presentation september
3 q15 presentation final
2 q16 presentation
Investor Relations Overview - November
Ad

Similar to Trc q1 2015 earnings slides final (20)

PDF
Trc investor presentation final
PDF
Trc q1 2016 earnings slides final
PDF
Trc q2 2014 earnings slides final
PDF
Trc q1 2014 earnings slides final
PDF
Trc q3 2014 earnings slides final
PDF
Trc q1 2017 earnings slides final2
PDF
Trc investor presentation q1 2014 final
PPTX
TRC Investor Presentations Q1 2014
PDF
Trc q2 2016 earnings slides final
PDF
Trc q4 2016 earnings slides final
PDF
Trc q3 2016 earnings slides final
PDF
Trc investor presentation 05 13 final
PDF
TRC Q2 2017 Earnings Slides
PDF
Q2 2014 Ryder System Inc Earnings Presentation
PDF
First Quarter 2015 Financial Results Investor Call
PDF
1Q 2016 Ryder System Inc Earnings Report
PDF
1Q 2016 Ryder System Inc Earnings Report
PPTX
Q1 Ryder System, Inc. Earnings Presentation
PDF
LinkedIn Q1 2014 Earnings Call
PPTX
Q1 2013 Ryder System, Inc. Earnings Presentation
Trc investor presentation final
Trc q1 2016 earnings slides final
Trc q2 2014 earnings slides final
Trc q1 2014 earnings slides final
Trc q3 2014 earnings slides final
Trc q1 2017 earnings slides final2
Trc investor presentation q1 2014 final
TRC Investor Presentations Q1 2014
Trc q2 2016 earnings slides final
Trc q4 2016 earnings slides final
Trc q3 2016 earnings slides final
Trc investor presentation 05 13 final
TRC Q2 2017 Earnings Slides
Q2 2014 Ryder System Inc Earnings Presentation
First Quarter 2015 Financial Results Investor Call
1Q 2016 Ryder System Inc Earnings Report
1Q 2016 Ryder System Inc Earnings Report
Q1 Ryder System, Inc. Earnings Presentation
LinkedIn Q1 2014 Earnings Call
Q1 2013 Ryder System, Inc. Earnings Presentation

Recently uploaded (20)

PDF
Second Hand Fashion Call to Action March 2025
PPTX
BUSINESS CYCLE_INFLATION AND UNEMPLOYMENT.pptx
PPTX
CTG - Business Update 2Q2025 & 6M2025.pptx
PDF
Stacey L Stevens - Canada's Most Influential Women Lawyers Revolutionizing Th...
PPTX
IMM marketing mix of four ps give fjcb jjb
DOCX
80 DE ÔN VÀO 10 NĂM 2023vhkkkjjhhhhjjjj
PDF
income tax laws notes important pakistan
PDF
Business Communication for MBA Students.
PPT
Retail Management and Retail Markets and Concepts
PDF
HQ #118 / 'Building Resilience While Climbing the Event Mountain
PPTX
IITM - FINAL Option - 01 - 12.08.25.pptx
PDF
#1 Safe and Secure Verified Cash App Accounts for Purchase.pdf
DOCX
Hand book of Entrepreneurship 4 Chapters.docx
PPTX
33ABJFA6556B1ZP researhchzfrsdfasdfsadzd
PDF
Cross-Cultural Leadership Practices in Education (www.kiu.ac.ug)
PPTX
2 - Self & Personality 587689213yiuedhwejbmansbeakjrk
PDF
533158074-Saudi-Arabia-Companies-List-Contact.pdf
DOCX
Center Enamel Powering Innovation and Resilience in the Italian Chemical Indu...
PPTX
IMM.pptx marketing communication givguhfh thfyu
PDF
Comments on Clouds that Assimilate Parts I&II.pdf
Second Hand Fashion Call to Action March 2025
BUSINESS CYCLE_INFLATION AND UNEMPLOYMENT.pptx
CTG - Business Update 2Q2025 & 6M2025.pptx
Stacey L Stevens - Canada's Most Influential Women Lawyers Revolutionizing Th...
IMM marketing mix of four ps give fjcb jjb
80 DE ÔN VÀO 10 NĂM 2023vhkkkjjhhhhjjjj
income tax laws notes important pakistan
Business Communication for MBA Students.
Retail Management and Retail Markets and Concepts
HQ #118 / 'Building Resilience While Climbing the Event Mountain
IITM - FINAL Option - 01 - 12.08.25.pptx
#1 Safe and Secure Verified Cash App Accounts for Purchase.pdf
Hand book of Entrepreneurship 4 Chapters.docx
33ABJFA6556B1ZP researhchzfrsdfasdfsadzd
Cross-Cultural Leadership Practices in Education (www.kiu.ac.ug)
2 - Self & Personality 587689213yiuedhwejbmansbeakjrk
533158074-Saudi-Arabia-Companies-List-Contact.pdf
Center Enamel Powering Innovation and Resilience in the Italian Chemical Indu...
IMM.pptx marketing communication givguhfh thfyu
Comments on Clouds that Assimilate Parts I&II.pdf

Trc q1 2015 earnings slides final

  • 1. Q1 Fiscal 2015 Investor Review November 4, 2014 TRR Chris Vincze Tom Bennet Chairman & CEO Chief Financial Officer
  • 2. Safe Harbor Statement 2 Certain statements in this presentation may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these statements by forward-looking words such as "may," "expects," "plans," "anticipates," "believes," "estimates," or other words of similar import. You should consider statements that contain these words carefully because they discuss TRC’s future expectations, contain projections of the Company’s future results of operations or of its financial condition, or state other "forward-looking" information. TRC believes that it is important to communicate its future expectations to its investors. However, there may be events in the future that the Company is not able to accurately predict or control and that may cause its actual results to differ materially from the expectations described in its forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and actual results may differ materially from those discussed as a result of various factors, including, but not limited to, the uncertainty of TRC’s operational and growth strategies; circumstances which could create large cash outflows, such as contract losses, litigation, uncollectible receivables and income tax assessments; regulatory uncertainty; the availability of funding for government projects; the level of demand for TRC’s services; product acceptance; industry-wide competitive factors; the ability to continue to attract and retain highly skilled and qualified personnel; the availability and adequacy of insurance; and general political or economic conditions. Furthermore, market trends are subject to changes which could adversely affect future results. See the risk factors and additional discussion in TRC’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014, Quarterly Reports on Form 10-Q, and other factors detailed from time to time in the Company’s other filings with the Securities and Exchange Commission. These slides are intended as a visual aid to TRC’s commentary on the First Quarter Fiscal Year 2015 Financial Results Conference Call. As such they should be considered in the full context of that commentary, the transcript of that conference call and TRC’s first quarter Form 10-Q and Financial Results Press Release. Also, this presentation contains references to non-GAAP metrics such as EBITDA, gross margin and free cash flow. A reconciliation of GAAP to non-GAAP metrics can be found on slide 14.
  • 3. Q1 Fiscal 2015 Overview 3 NSR1 increased 14% YOY to $92.6M Energy +15%, Environmental +24%, Infrastructure +4% Growth: 77% Organic, 23% from Acquisitions Operating income increased 41% YOY to $6.0M NSR backlog increased 9% YOY to $260.0M Energy +25%, Environmental +2%, Infrastructure +4% (1) TRC believes net service revenue (gross revenue less subcontractor costs and other direct reimbursable charges) best reflects the value of services provided to its customers and is the most meaningful indicator of its revenue performance. EBITDA increased 30% YOY to $8.3M Net income increased 40% YOY to $3.5M
  • 4. EnvironmentalSegment 4 Q1 Fiscal 2015 Results  NSR +24% YOY  Continued development of upstream, midstream and downstream oil & gas markets  Increased demand for remediation and pipeline permitting services  Segment profit +9% YOY $38.4 $47.7 Q1 2014 Q1 2015 Net Service Revenue (in millions) $9.3 $10.2 Q1 2014 Q1 2015 Segment Profit (in millions) +24% +9%
  • 5. EnergySegment 5 Q1 Fiscal 2015 Results  NSR +15% YOY  Expanding utility capital spend programs on aging transmission and distribution infrastructure  Growing geographic presence  Segment profit +38% YOY  Improved labor utilization $28.8 $33.2 Q1 2014 Q1 2015 Net Service Revenue (in millions) $4.1 $5.6 Q1 2014 Q1 2015 Segment Profit (in millions) +38%+15%
  • 6. InfrastructureSegment 6 Q1 Fiscal 2015 Results  NSR +4% YOY  Healthier State and municipal budgets providing for more transportation projects  Segment profit -20% YOY  Contract scope changes under negotiation $12.6 $13.1 Q1 2014 Q1 2015 Net Service Revenue(in millions) $2.8 $2.3 Q1 2014 Q1 2015 Segment Profit (in millions) +4% -20%
  • 7. $45 $47 $47 $69 $83 $86 $125 $127 $127 Q1 2014 Q4 2014 Q1 2015 Segment NSR Backlog NSR Backlog & New Project Wins 7 (in millions) Energy • PSE&G • Excelon Environmental • Confidential mid-stream oil & gas client • Spectra Energy Infrastructure • PennDOT • VDOT $239 $260$257
  • 8. 8 Growth Strategy 0% 5% 10% 15% 20% 25% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Total Organic Total & Organic NSR Growth Recent Acquisitions NOVA Safety & Environmental (September 2014) Covino Environmental Associates (July 2014) EMCOR Energy Services, Inc. (January 2014) Utility Support Systems, Inc. (July 2013) • Investing in high-margin organic growth opportunities • Pursuing strategic acquisitions to expand our platform in key North American markets
  • 9. 9 NOVA Safety & Environmental (NOVA) • Acquired in September 2014 • Strengthens TRC’s position in robust oil and gas market • Provides safety training, environmental services, oil spill response, remediation and general oil field construction services • Enhances presence in Permian Basin region of West Texas and New Mexico • Profitable and growing company with impeccable safety record • Approximately 60 employees • Gross revenues of $16.5 million in 2013 • Based in Midland, TX
  • 10. Summary and Key Initiatives 10 • Consistently improving financial performance • Invest in organic growth opportunities • Increase focus on strategic markets: • Oil & Gas – Market provides expansive opportunities • Utility/Power – Aging and inefficient transmission and distribution systems require long-term capital investments • Transportation – National transportation and energy delivery systems need to be modernized • Continue to pursue strategic acquisitions that provide geographic expansion and enhanced technical capabilities
  • 11. $81.3 $92.6 Q1 2014 Q1 2015 Net Service Revenue (in millions) Quarterly Financial Results Overview 11 $6.4 $8.3 Q1 2014 Q1 2015 EBITDA(in millions) $4.3 $6.0 Q1 2014 Q1 2015 Operating Income (in millions) +14% +41% +30% $0.08 $0.11 Q1 2014 Q1 2015 Diluted EPS +38%
  • 12. Q1 2015 $92.6 $4.8 $81.2 12.3% $8.0 $6.0 $8.3 9.0% $3.5 $0.11 Q1 2014 $81.3 $12.3 $78.4 3.5% $8.8 $4.3 $6.4 7.9% $2.5 $0.08 12 (In millions, except per share data) Quarterly Income Statement Highlights $81.3 $92.6 96.5% 87.7% Q1 2014 Q1 2015 Cost of Services as % of NSR $81.3 $92.6 10.8% 8.7% Q1 2014 Q1 2015 G&A Expenses as % of NSR Exit Strategy Activity Q1 2014 Q1 2015 Net Service Revenue $ (5.1) $ (1.0) Insurance Recoverables 12.4 4.6 Cost of Services 7.3 4.1 Operating Income $ - $ (0.5) Net service revenue Insurance recoverables and other income Cost of services (COS) Gross margin % General and administrative expenses Operating income EBITDA EBITDA as a % of NSR Net income Diluted earnings per common share
  • 13. 13 Balance Sheet Highlights Cash and cash equivalents Days sales outstanding (DSO) Cash Flow Highlights Cash flow from operations Capital expenditures Free cash flow Q1 2014 $22.0 95 days $1.1 $(1.6) $(0.5) Q1 2015 $28.8 92 days $2.5 $(1.4) $1.1 (In millions) Balance Sheet and Cash Flow Highlights Announced $10 million share repurchase program
  • 14. Reconciliation of Non-GAAP Measures 14 In millions Q1 - 2014 Q1 - 2015 Net income applicable to TRC Companies, Inc.'s common shareholders $2.5 $3.5 Interest expense 0.1 0.0 Federal and state income tax provision 1.7 2.5 Depreciation and amortization 2.1 2.3 Net loss applicable to noncontrolling interest 0.0 0.0 Consolidated EBITDA $6.4 $8.3 In millions Q1 - 2014 Q1 - 2015 Net service revenue $81.3 $92.6 Cost of services 78.4 81.2 Gross Margin $2.9 $11.4 Gross Margin % 3.5% 12.3% In millions Q1 - 2014 Q1 - 2015 Cash flow from operations $1.1 $2.5 Additions to property and equipment (1.6) (1.4) Free Cash Flow $(0.5) $1.1 Earnings Before Interest, Taxes, Depreciation, Amortization Gross Margin and Gross Margin % Free Cash Flow
  • 15. Definitions for Non-GAAP Measures 15 Earnings Before Interest, Taxes, Depreciation, Amortization (EBITDA) The Company presents EBITDA because it believes that it is a useful tool for the Company, its lender and its investors to measure the Company’s ability to meet debt service, capital expenditure and working capital requirements. As used in the presentation, EBITDA is operating income plus depreciation and amortization. Note that a separate, modified non-GAAP term “Consolidated Adjusted EBITDA” is specified in the Company’s revolving credit agreement. Gross Margin and Gross Margin % The Company presents Gross Margin and Gross Margin % to allow investors to better evaluate short-term and long-term profitability trends. The definition of Gross Margin is equal to Net Service Revenue less Cost of Services. Gross Margin % is equal to Gross Margin Divided by Net Service Revenue. Free Cash Flow The Company presents free cash flow, and ratios based on it, to conduct and evaluate its business because, although it is similar to cash flow from operations, the Company believes it is a useful measure of cash flows since purchases of fixed assets are a necessary component of ongoing operations. The definition of Free Cash Flow is equal to net cash provided by (used in) operating activities plus additions to property and equipment.