EARNINGS CALL Q4-21November 18, 2021 Dan Batrack, Chairman & CEO Steve Burdick, Executive VP & CFO WATER ENVIRONMENT SUSTAINABLE INFRASTRUCTURE RENEWABLE ENERGY Leading with Science® Forward Looking Statements & Non-GAAP Financial Measures Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, such as those related to fluctuations in the Company's quarterly ...

For the quarterly period ended June 27, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-19655 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 TETRA TECH, INC. (Exact name of registrant as specified in its charter) Delaware 95-4148514 (State or other jurisdiction of i ...

Tetra Tech, Inc. (NASDAQ:TTEK) Q2 2021 Earnings Conference Call April 29, 2021 11:00 AM ET Company Participants Dan Batrack - Chairman & CEO Steven Burdick - CFO, EVP & Treasurer Conference Call Participants Sean Eastman - KeyBanc Capital Markets Samuel England - Berenberg Andrew Wittmann - Baird Tate Sullivan - Maxim Group Operator 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 compa ...

Financial Information [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements show increased assets to $2.46 billion, a 17.0% rise in net income, and a significant increase in operating cash flow Financial Metric | Financial Metric | March 28, 2021 (in thousands) | September 27, 2020 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $225,330 | $157,515 | | Total current assets | $1,064,111 | $999,785 | | Goodwill | $1,029,573 | $993,498 | | Total assets | $2,455,062 | $2,378,558 | | **Liabilities & Equity** | | | | Total current liabilities | $796,702 | $793,456 | | Long-term debt | $238,339 | $242,395 | | Total liabilities | $1,307,834 | $1,341,185 | | Total stockholders' equity | $1,147,228 | $1,037,373 | Metric (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended Mar 28, 2021 | Three Months Ended Mar 29, 2020 | Six Months Ended Mar 28, 2021 | Six Months Ended Mar 29, 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $754,764 | $734,133 | $1,519,868 | $1,531,756 | | Gross Profit | $112,484 | $97,000 | $228,794 | $206,737 | | Income from Operations | $60,807 | $47,530 | $127,059 | $110,832 | | Net Income Attributable to Tetra Tech | $45,517 | $36,397 | $97,953 | $83,707 | | Diluted EPS | $0.83 | $0.66 | $1.79 | $1.51 | Cash Flow Activity (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended Mar 28, 2021 | Six Months Ended Mar 29, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $157,424 | $83,199 | | Net cash used in investing activities | ($7,283) | ($27,299) | | Net cash used in financing activities | ($91,129) | ($39,257) | | Net increase in cash | $67,815 | $14,234 | [Revenue and Contract Balances](index=9&type=section&id=Note%203.%20Revenue%20and%20Contract%20Balances) Revenue was primarily driven by the U.S. federal government sector, with $3.1 billion in Remaining Unsatisfied Performance Obligations (RUPOs) Revenue by Client Sector (Six Months Ended) | Revenue by Client Sector (Six Months Ended) | March 28, 2021 | March 29, 2020 | | :--- | :--- | :--- | | U.S. state and local government | $254,747 | $227,507 | | U.S. federal government | $533,561 | $488,564 | | U.S. commercial | $301,508 | $342,278 | | International | $430,052 | $473,407 | | **Total (in thousands)** | **$1,519,868** | **$1,531,756** | - As of March 28, 2021, Remaining Unsatisfied Performance Obligations (RUPOs) totaled **$3.13 billion**[42](index=42&type=chunk) - Of the total RUPOs, **$1.83 billion** is expected to be recognized as revenue within the next 12 months[43](index=43&type=chunk) [Acquisitions](index=12&type=section&id=Note%204.%20Acquisitions) The company acquired Coanda Research and Development in Q2 2021 and holds a potential $66.9 million in outstanding contingent consideration - Acquired Coanda Research and Development Corporation (CRD) in Q2 2021, which is part of the CIG segment[44](index=44&type=chunk) - Acquired Segue Technologies, Inc. (SEG) and BlueWater Federal Solutions, Inc. (BWF) in fiscal 2020, both part of the GSG segment[45](index=45&type=chunk)[46](index=46&type=chunk) - The total potential maximum outstanding contingent consideration for acquisitions was **$66.9 million** as of March 28, 2021, with a fair value of **$28.7 million** recorded as a liability[52](index=52&type=chunk) [Goodwill and Intangible Assets](index=13&type=section&id=Note%205.%20Goodwill%20and%20Intangible%20Assets) Goodwill increased to $1.03 billion due to acquisitions, while a $15.8 million impairment charge was recorded for the former ASP unit Goodwill by Segment (in thousands) | Goodwill by Segment (in thousands) | Balance at Sep 27, 2020 | Balance at Mar 28, 2021 | | :--- | :--- | :--- | | GSG | $516,315 | $524,189 | | CIG | $477,183 | $505,384 | | **Total** | **$993,498** | **$1,029,573** | - In September 2020, a goodwill impairment charge of **$15.8 million** was recorded for the former ASP reporting unit due to economic conditions in Australia[57](index=57&type=chunk) [Stock Repurchase and Dividends](index=15&type=section&id=Note%207.%20Stock%20Repurchase%20and%20Dividends) The company repurchased $30 million in stock and paid $18.4 million in dividends during the first half of fiscal 2021 - Repurchased **$30 million** of common stock in the first half of fiscal 2021, with **$177.8 million** remaining under the authorized program[60](index=60&type=chunk) - Paid total dividends of **$18.4 million** ($0.34 per share) in the first half of fiscal 2021[61](index=61&type=chunk) - A subsequent quarterly cash dividend of **$0.20 per share** was declared on April 26, 2021[61](index=61&type=chunk) [Reportable Segments](index=18&type=section&id=Note%2012.%20Reportable%20Segments) The GSG segment drove revenue and operating income growth, while the CIG segment saw lower revenue but higher operating income Segment Performance (Six Months Ended, in thousands) | Segment Performance (Six Months Ended, in thousands) | Revenue (FY21) | Revenue (FY20) | Income from Operations (FY21) | Income from Operations (FY20) | | :--- | :--- | :--- | :--- | :--- | | GSG | $942,451 | $894,307 | $93,809 | $77,395 | | CIG | $604,152 | $659,576 | $55,869 | $53,309 | | RCM | $470 | $150 | $1 | $1 | [Commitments and Contingencies](index=22&type=section&id=Note%2016.%20Commitments%20and%20Contingencies) A subsidiary faces a significant legal complaint from the U.S. Attorney's Office, with an currently indeterminable outcome - A subsidiary, TtEC, is facing a complaint from the U.S. Attorney's Office alleging False Claims Act violations concerning work at the Hunters Point Naval Shipyard[90](index=90&type=chunk) - The company is currently unable to determine the probability of the outcome or the range of reasonably possible loss for this matter[90](index=90&type=chunk) [Management's Discussion and Analysis (MD&A)](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Despite a slight revenue decline, operating income and EPS grew significantly, driven by government sector strength and strong liquidity - The company's high-end consulting focus and technology allowed staff to support clients remotely without interruption during the COVID-19 pandemic[108](index=108&type=chunk) - For the first half of fiscal 2021, revenue declined **0.8%** year-over-year, while operating income increased **14.6%** and diluted EPS grew **18.5%**[109](index=109&type=chunk)[114](index=114&type=chunk) - Adjusted EPS for the first half of fiscal 2021 was **$1.79**, a **14.0% increase** from $1.57 in the prior-year period[118](index=118&type=chunk) [Overview of Results and Business Trends](index=26&type=section&id=Overview%20of%20Results%20and%20Business%20Trends) Strong growth in U.S. government client sectors offset declines in commercial and international markets impacted by the COVID-19 pandemic - U.S. state and local government revenue increased **12.0%** in H1 2021, driven by municipal water infrastructure projects[110](index=110&type=chunk) - U.S. federal government revenue grew **9.2%** in H1 2021, aided by acquisitions and increased advanced analytics activity[111](index=111&type=chunk) - U.S. commercial revenue decreased **11.9%** and international revenue decreased **9.2%** in H1 2021, largely due to the COVID-19 pandemic's impact[112](index=112&type=chunk)[113](index=113&type=chunk) [Segment Results of Operations](index=29&type=section&id=Segment%20Results%20of%20Operations) The GSG segment showed strong revenue and profit growth, while the CIG segment's revenue fell but operating margin improved - **GSG Segment (H1 FY21)**: Revenue grew **5.4%** to $942.5M and operating income grew **21.2%** to $93.8M, with operating margin improving to **13.6%** from 11.9% YoY[122](index=122&type=chunk)[123](index=123&type=chunk) - **CIG Segment (H1 FY21)**: Revenue decreased **8.4%** to $604.2M, but operating income increased **4.8%** to $55.9M, with operating margin improving to **10.9%** from 9.7% YoY[125](index=125&type=chunk)[126](index=126&type=chunk) [Backlog](index=30&type=section&id=Backlog) The company's backlog of future revenue from awarded contracts stood at $3.15 billion at the end of the reporting period - Backlog was **$3.15 billion** as of March 28, 2021, compared to **$3.24 billion** as of September 27, 2020[129](index=129&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with robust operating cash flow, ample credit availability, and compliance with all debt covenants - Primary sources of liquidity are cash from operations (**$157.4 million** in H1 FY21) and borrowings under the credit facility[131](index=131&type=chunk)[137](index=137&type=chunk) - As of March 28, 2021, the company had **$250.8 million** in outstanding borrowings and **$419.6 million** of available credit under its Amended Revolving Credit Facility[141](index=141&type=chunk) - The company was in compliance with its debt covenants, with a consolidated leverage ratio of **1.03x** (max 3.00x) and an interest coverage ratio of **23.06x** (min 3.00x)[142](index=142&type=chunk) [Market Risk Disclosures](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate and foreign currency risks, which it manages through swaps and currency matching strategies - The company is exposed to interest rate risk on its **$1 billion** Amended Credit Agreement, which has a variable interest rate[156](index=156&type=chunk) - To manage interest rate risk, the company entered into interest rate swap agreements, fixing the rate on a notional principal of **$221.9 million** as of March 28, 2021[157](index=157&type=chunk) - The company is subject to foreign currency exchange risk, as **28.3%** of its consolidated revenue in H1 2021 was generated by its international business[159](index=159&type=chunk)[160](index=160&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 28, 2021[162](index=162&type=chunk) - **No material changes** were made to the internal control over financial reporting during the quarter[163](index=163&type=chunk) Other Information [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company's primary legal proceeding involves a complaint against its subsidiary TtEC, as detailed in the financial statement notes - Information regarding legal proceedings is incorporated by reference from Note 16, "Commitments and Contingencies"[90](index=90&type=chunk)[164](index=164&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have been reported since the 2020 Annual Report on Form 10-K - **No material changes** in risk factors were reported since the 2020 Annual Report on Form 10-K[166](index=166&type=chunk) [Share Repurchases](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased approximately $30 million of its shares in H1 2021, with $177.8 million remaining under its repurchase program Share Repurchase Activity | Period (FY 2021) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Sep 28 - Oct 25, 2020 | 45,574 | $102.67 | | Oct 26 - Nov 22, 2020 | 46,975 | $110.67 | | Nov 23 - Dec 27, 2020 | 42,864 | $119.50 | | Dec 28 - Jan 24, 2021 | 33,790 | $125.46 | | Jan 25 - Feb 21, 2021 | 37,992 | $132.50 | | Feb 22 - Mar 28, 2021 | 42,519 | $134.69 | - As of March 28, 2021, approximately **$177.8 million** remained available for purchase under the company's stock repurchase program[167](index=167&type=chunk)[168](index=168&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-19655 TETRA TECH, INC. (Exact name of registrant as specified in its charter) (Address of principal executive offices) (Zip Cod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | ____________________________________________________________________________ | | | --- | --- | | FORM 10-K | | | (Mark One) | | | ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the Fiscal Year Ended September 27, 2020 | | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the Transition Period from | to | | Commission File Number 0-19 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-19655 TETRA TECH, INC. (Exact name of registrant as specified in its charter) Delaware 95-4148514 (State or other jurisdiction of i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 3475 East Foothill Boulevard, Pasadena, California 91107 (Address of principal executive offices) (Zip Code) For the quarterly period ended March 29, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIE ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 29, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-19655 TETRA TECH, INC. (Exact name of registrant as specified in its charter) Delaware 95-4148514 (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-K (Mark One) | ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | --- | | For the Fiscal Year Ended September 29, 2019 | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ | | For the Transition Period from to | | Commission File Number 0-19655 | | ________________________ ...