Recent News & Press Releases

Press Release

TRC Awarded Patent for Robust Environmental Remediation Solution

LOWELL, MASS. –TRC Companies, Inc. has been awarded a patent by the U.S. Patent and Trademark Office for its cap design that prevents releases of coal tar, petroleum and other non-aqueous phase liquids (NAPL) from contaminated sediment at former manufactured gas plant (MGP) sites. While conventional sediment caps only delay eventual contaminant releases, TRC’s cap design stops NAPL migration.

From the late 1800s to the mid-1900s, manufactured gas plants (MGP) across the U.S. supplied homes and industry with fuel for heating, cooking, and lighting. The process to create the fuel at the industrial plants resulted in the release of residues including tar, sludge, oils and other wastes. Although many of the by-products were recycled, excess residues remain at thousands of MGP sites.

“MGP contamination is a significant issue nationwide and we have found a more effective way to manage it,” said Chris Vincze, President and Chief Executive Officer of TRC. “Our solution helps reduce client costs, protects the public health, and preserves the environment. We’re enormously proud of our staff for this innovative achievement.”

Gas that bubbles up from the degrading organic matter not only causes the migration of contaminants, but also leads to the failure of conventional sediment caps. TRC’s newly patented cap design stops NAPL migration and safely vents the gas to the atmosphere.

This patent is the first in a series of TRC applications covering cap designs for managing gas and contaminant releases at sediment sites. Two full-scale applications of this design have already been constructed for TRC utility clients. The cap is currently being used at a site in Ann Arbor, Michigan along the Huron River, and at a site in Bangor, Maine along the Penobscot River.

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Press Release

TRC Announces Third-Quarter Financial Results and Acquisition of Covina, California operations of Ocampo-Esta Corporation

LOWELL, MASS. – TRC Companies, Inc. a recognized leader in engineering, consulting and construction management services to the energy, environmental and infrastructure markets, announced today financial results for the fiscal three and nine months ended March 29, 2013.

Financial Highlights

Three Months EndedNine Months Ended
(In millions, except per share data)March 29,March 30,March 29,March 30,
Net service revenue(1)$83.0$75.1$233.5$222.5
Arena Towers litigation reversal (2)$-$-$-$(11.1)
Operating income$3.4$3.5$12.4$23.9
Federal and state income tax (provision) benefit (3)$(0.2)$0.6$(0.7)$4.1
Net income applicable to TRC Companies, Inc.$3.1$3.9$11.5$27.8
Diluted earnings per common share$0.10$0.13$0.39$0.97
Diluted weighted-average common shares outstanding29.728.929.528.6
(1)The Company believes net service revenue best reflects the value of services provided and is the most meaningful indicator of revenue performance.
(2)On October 5, 2011 a post-trial motion was granted to disregard a substantial portion of the verdict in this matter resulting in an $11.2 million reduction of the litigation accrual in the first quarter of fiscal 2012.
(3)The Company received approval of a federal tax settlement resulting in an income tax benefit in the first quarter of fiscal 2012.

Comments on the Results
“TRC had a strong third quarter with solid top line contributions from all three segments,” said Chairman and Chief Executive Officer, Chris Vincze. “Overall Net Service Revenue (NSR) was up 11% compared with the same quarter last year.”

“NSR growth was fairly balanced with two-thirds coming from organic sources, while acquisitions provided the other third. Strong demand for electric distribution services and further expansion into the mid-Atlantic region led to a 16% increase in Energy segment NSR, while in the Environmental segment, NSR increased 7% due to increased utilization on large remediation projects. Profit in these segments was lower than the same quarter of the prior year, primarily due to increased costs on several fixed price projects, acquisition integration costs, and growth-related staffing costs. Infrastructure segment NSR was up 14% and profit was sharply higher compared with the same period of the prior year, largely due to improving market conditions and initiatives focused on higher margin work.”

“We continued to benefit from our efficient cost structure. G&A expenses were flat in the quarter compared with the prior year, while the ratio of G&A costs to NSR decreased to 9.7% from 10.8% in the prior year period. The income tax expense in the quarter reflects continued federal alternative minimum tax and state income tax costs, compared with a tax benefit of $0.02 per diluted share in the prior year period.”

Recent Developments
TRC also announced today that it has acquired the Covina, California operations of Ocampo-Esta Corporation, a power delivery engineering company, thus increasing its presence in the very active southern California utility market. “Ocampo-Esta has an outstanding reputation, and we welcome their talented staff of professionals to TRC. This acquisition, combined with the two acquisitions we closed last quarter - the GE Air Emissions Testing business and the Sacramento-based energy efficiency consulting firm Heschong-Mahone Group – furthers our growth strategy and expands our geographic presence and service offerings, particularly to the utility industry.”

Business Outlook
“We are optimistic about the long-term prospects for our markets and believe we are uniquely positioned to serve them. Our NSR backlog grew 1.2% to $245 million compared with the third quarter of the prior year and was up sequentially by $20 million or 8.9% over the second quarter of this fiscal year. The demand for electric utility and energy efficiency services will continue. America’s transportation infrastructure is in critical need of upgrade and repair and we are beginning to see signs of recovery in the environmental marketplace. Our strong financial position, including our new revolving credit facility, will serve our long-term strategy, allowing us to focus on our clients’ needs and seek out growth opportunities,” concluded Vincze.

Conference Call Information
The Company will broadcast its financial results conference call today, May 8, 2013 at 9 a.m. ET. Those who wish to listen to the conference call should visit the “Investor Center” section of TRC’s website at The call may also be accessed by dialing (877) 709-8155 or (201) 689-8881. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.

Forward-Looking Statements
Certain statementsin this press release 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, 2012, Quarterly Reports on Form 10-Q, and other factors

TRC Companies, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months EndedNine Months Ended
March 29,March 30,March 29,March 30,
Gross revenue$109,806$101,118$322,562$310,231
Less subcontractor costs and other direct reimbursable charges26,76225,98389,04887,745
Net service revenue83,04475,135233,514222,486
Interest income from contractual arrangements5856186229
Insurance recoverables and other income1,0685543,7251,292
Operating costs and expenses:
Cost of services (exclusive of costs shown separately below)70,44662,910198,696184,245
General and administrative expenses8,0968,08720,96522,482
Provision for doubtful accounts408-408365
Depreciation and amortization1,8281,2314,9594,027
Arena Towers litigation reversal---(11,061)
Total operating costs and expenses80,77872,228225,028200,058
Operating income3,3923,51712,39723,949
Interest expense(78)(228)(270)(584)
Income from operations before taxes and equity in earnings3,3143,28912,12723,365
Federal and state income tax (provision) benefit(231)571(680)4,075
Income from operations before equity in earnings3,0833,86011,44727,440
Equity in earnings from unconsolidated affiliates, net of taxes---270
Net income3,0833,86011,44727,710
Net loss applicable to noncontrolling interest18214970
Net income applicable to TRC Companies, Inc.$3,101$3,881$11,496$27,780
Basic earnings per common share$0.11$0.14$0.40$1.00
Diluted earnings per common share$0.10$0.13$0.39$0.97
Weighted-average common shares outstanding:
TRC Companies, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
March 29,June 30,
Current assets:
Cash and cash equivalents$9,997$16,561
Accounts receivable, less allowance for doubtful accounts107,95195,215
Insurance recoverable - environmental remediation25,89925,744
Restricted investments6,2084,413
Prepaid expenses and other current assets13,71412,077
Total current assets163,769154,010
Property and equipment55,78153,352
Less accumulated depreciation and amortization(41,989)(39,621)
Property and equipment, net13,79213,731
Investments in and advances to unconsolidated affiliates and construction joint ventures109109
Long-term restricted investments28,65435,265
Long-term prepaid insurance32,03334,272
Other assets14,50912,853
Total assets$281,226$275,128
Current liabilities:
Current portion of long-term debt$5,521$1,315
Current portion of capital lease obligations560267
Accounts payable29,46930,712
Accrued compensation and benefits34,96336,292
Deferred revenue19,57318,236
Environmental remediation liabilities290422
Other accrued liabilities31,15830,315
Total current liabilities121,534117,559
Non-current liabilities:
Long-term debt, net of current portion7673,860
Capital lease obligations, net of current portion956462
Income taxes payable and deferred income tax liabilities777622
Deferred revenue70,54879,104
Environmental remediation liabilities5,4215,473
Total liabilities200,003207,080
Commitments and contingencies
Common stock, $.10 par value; 40,000,000 shares authorized, 29,025,522 and 29,022,040 shares issued and outstanding, respectively, at March 29, 2013, and 28,130,702 and 28,127,220 shares issued and outstanding, respectively, at June 30, 20122,9032,813
Additional paid-in capital180,812179,402
Accumulated deficit(102,184)(113,680)
Accumulated other comprehensive income (loss)44(184)
Treasury stock, at cost(33)(33)
Total shareholders' equity applicable to TRC Companies, Inc.81,54268,318
Noncontrolling interest(319)(270)
Total equity81,22368,048
Total liabilities and equity$281,226$275,128

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Press Release

TRC Names John Cowdery Senior Vice President & Environmental Sector Director

LOWELL, MASS. – TRC Companies, Inc. announced today that John Cowdery has joined as Senior Vice President and Environmental Sector Director. In this role, Cowdery will be responsible for working with environmental Business Leaders to develop and implement a five-year strategy for growth across the Company’s markets. He will also serve on TRC’s Executive Management Team.

“With more than 25 years of vast industry experience and a track record of creating value, improving operations and guiding the growth of successful environmental services firms, John will be an excellent addition to the senior leadership team,” said Chairman and Chief Executive Officer Chris Vincze. “John is a well-respected advisor within this industry and we look forward to his contributions toward the success of our Environmental business.”

Prior to joining TRC, Cowdery was President & Founder of Callard & Cowdery, a management consulting firm that advises CEOs, Boards of Directors and investors in the Environmental Consulting, Design and Engineering industry. Since founding the firm in 2010, Cowdery performed numerous assignments throughout the U.S. supporting value creation, sales programs, strategic planning, operational improvements, benchmarking, succession planning, and mergers & acquisitions, including recently serving as the Chief Operating Officer of PMC, Rancho Cordova, California.

“I have known of TRC since entering the environmental industry many years ago,” said Cowdery. “The Company has gone through significant change and is well positioned to become the leading service provider to the markets that we serve nationally and internationally. I am very pleased to become part of an extremely talented team of people and look forward to supporting TRC’s five-year growth strategy.”

Prior to founding his firm in 2010, Cowdery was Senior Vice President, Environment, Planning & Infrastructure for ICF International. From 2000 to 2008, Cowdery served as President and Chief Executive Officer at Jones & Stokes Associates, overseeing strategic planning and operations. Cowdery executed six successful acquisitions and grew the firm from a 200-person company with $25 million in gross revenue to more than 600 employees generating more than $75 million. From 1994 to 2000, he was Vice President, Western Region at ATC Group Services, and from 1987 to 1994 he served as Senior Vice President of the environmental consulting practice at Hygienetics Environmental Services.

Cowdery earned an M.B.A. from Saint Mary’s College in Moraga, California; an M.S. Health from Southern Illinois University and a B.S. from Keene State College in Keene, New Hampshire.

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Press Release

TRC Marketing Communications Wins Three Gold Awards

LOWELL, Mass. (February 25, 2013) – TRC Companies, Inc. was awarded three 2012 Gold MarCom Awards presented by the Association of Marketing and Communications Professionals. TRC won accolades in the categories of Ads/Magazine, Website Element/Blog, and Employee Publication/Internal Newsletter.

“It’s always an honor to be recognized by our peers in the communications community,” said Angela Cincotta, director of marketing at TRC. “In today’s cluttered media environment, it’s critical to create memorable marketing messages that effectively reach our stakeholders. The conversations we have with them help them better understand our company and our services.”

With more than 6,000 entries from throughout the United States and several countries around the globe, TRC won Gold Awards for its Let’s Talk blog, for the InSight employee newsletter, and for its print ad promoting the Company’s power delivery services. All of these communications tactics, including its outstanding social media efforts, aid TRC in promoting its expertise in the engineering, environmental and construction industries and differentiate its brand from its competitors. The Company continues to experiment with the latest developments in communications in order to broaden its reach and appeal among its target audiences.

The MarCom Awards are an international competition for marketing and communications professionals. Winners were selected from more than 200 categories in seven forms of media and communication disciplines including marketing, publications, marketing/promotion, public service/pro bono, creativity, and electronic/interactive.

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Press Release

TRC Acquires Air Emissions Testing Business from GE

LOWELL, MASS. – TRC Companies, Inc., a recognized leader in engineering, consulting and construction management services to the energy, environmental and infrastructure markets, today announced that it has acquired the assets of GE’s Air Emissions Testing business.As part of the transaction, TRC has also entered into a three-year master service agreement with GE Power & Water. GE’s Air Emissions Testing business generated annual revenue of approximately $12 million.

“The air testing business remains a core element in TRC’s offerings and has been since our founding more than four decades ago,” said TRC Chairman and Chief Executive Officer Chris Vincze. “The air emissions testing market is estimated at $500 million annually. This acquisition furthers our strategy of building strength in the most promising areas of our Energy and Environmental businesses.”

“With approximately 55 employees, GE’s Air Emissions Testing business will bring significant technical expertise to TRC,” said TRC’s National Air Measurements Practice Leader Jeffrey Burdette. “Equally as important, this transaction substantially expands our footprint in the Midwest and Southeast. GE’s Air Emissions Testing business also brings a number of key client accounts to TRC, including GE Power & Water.”

Bruce Randall, GE’s Air Emissions Testing Product Leader who is part of the team joining TRC, said, “We are enthusiastic about joining TRC and look forward to offering superior service to our clients through our combined organizations.”

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Press Release

TRC Acquires Energy Efficiency Consulting Firm Heschong Mahone Group, Inc.

TRC Companies, Inc., a recognized leader in engineering, consulting and construction management services to the energy, environmental and infrastructure markets, today announced that it has acquired Heschong Mahone Group, Inc. (HMG), a leader in building science, policy development and program management in energy efficiency. Financial terms of the agreement were not disclosed. The transaction is expected to be immediately accretive in the third quarter of fiscal 2013.

Energy efficiency represents a core growth market for TRC, and HMG is a top provider of consulting services for that market,” said TRC Chairman and Chief Executive Officer Chris Vincze. “As one of the most experienced energy efficiency firms on the West Coast and a long-term supplier to the three largest utilities in California, the addition of HMG to our team will greatly strengthen our presence in that geography. The acquisition also closely aligns with our strategy to grow our Energy and Environmental businesses, expand the capabilities of each practice and cross-sell our broad spectrum of services.”

TRC’s Energy Efficiency National Practice Leader Frank Reilly said, “HMG brings a valuable portfolio of clients to TRC, as well as new service offerings that include Program Measurement & Evaluation, Codes & Standards Development, and Emerging Technology Assessment. Over the past year, we have collaborated with the HMG team on several large projects including efficiency programs for NYSERDA. Led by Lisa Heschong and Douglas Mahone – two nationally recognized pioneers in energy efficiency – HMG’s staff consists of approximately 40 highly skilled analysts with broad technical expertise and management experience. We look forward to their contributions to the growth of our energy efficiency business.”

Lisa Heschong, Managing Principal at HMG, said, “By joining TRC, together we will strengthen our position at the forefront of the energy efficiency market. We believe this transaction will be beneficial for both our customers – who will have access to expanded service capabilities and nation-wide experience – and our employees – who will have access to a larger organization with more resources and additional career growth opportunities.”

Douglas Mahone, Managing Principal at HMG, said, “Since our founding in 1993, HMG has earned a reputation as a leader in energy efficiency. TRC is a respected peer and shares the same values and commitment to innovation and service excellence as HMG. We look forward to realizing the full potential of our combined organization.”

About HMG

The HESCHONG MAHONE GROUP, INC. (HMG) provides professional consulting services in the field of building energy efficiency. HMG specializes in applying its knowledge of building design, construction technology, program design and policy development to the problem of making populations of buildings more energy efficient. The firm offers direct, personal service to its clients. Broad experience with both utility and government clients allows HMG to provide customized, expert consulting services tailored to the needs of the project, its budget and schedule.

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Central Maine Power awards substation engineering project to TRC

LOWELL, MASS. – TRC Companies, Inc. has been awarded a $980,000 contract by Central Maine Power (CMP) to provide professional design and engineering services, project management, construction management, testing and commissioning for the development of the Ludden Lane substation in Canton, Maine. When complete, the substation will connect the Saddleback Mountain wind farm to CMP’s transmission grid to deliver clean, renewable energy across Maine.

“TRC is proud of our long standing relationship with CMP and our continued work on projects that improve power deliveryto the residents of Maine,” said Chris Vincze, Chairman and Chief Executive Officer. “Our engineering solutions support clients in their goals to add clean energy resources to the overall power mix so they can achieve increased reliability and improved service for their customers, and foster a healthier environment for their community.”

Under the contract, TRC will design all required substation structures, switches, bus/conduit, foundations, grounding, lightning shielding, control house, protection and controls equipment, relay settings, and fencing. The project is expected to be complete in October 2013.

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TRC Awarded Program Management Contract by Efficiency Maine

LOWELL, MASS. – TRC Companies, Inc. today announced that it has been awarded a multi-year contract to deliver program management services for Efficiency Maine’s Multifamily Efficiency Program. The initiative aims to reduce energy consumption by 20 percent by providing comprehensive retrofit services to 1,800 apartment units across the state.

“TRC is proud to support Efficiency Maine in their efforts to reduce energy consumption in multifamily housing units,” said Chris Vincze, Chairman and Chief Executive Officer. “This initiative will not only help building owners and tenants save money and improve the comfort of their homes, but the project also has tremendous benefits for the environment and local economy. Our experts are committed to Efficiency Maine’s success in achieving these benefits for communities across Maine.”

The Multifamily Efficiency program will target small to medium buildings with 5-20 apartment units. Buildings selected to participate will be benchmarked and audited by approved Program Partners. Building owners will receive recommendations for specific efficiency projects to implement as well as rebates that offset a portion of the installation costs. Efficiency Maine will also coordinate with Maine lenders to provide additional financing assistance to support project completion.

“In awarding this contract to TRC, we can assure our customers that they will receive the best advice on how to update their multi-unit housing so that energy efficiency delivered for dollars spent is optimized,” said Rick Meinking of Efficiency Maine. “Reducing energy consumption and waste are our goals, and consumers who participate in energy efficiency programs provide long-term economic benefits to the community.”

As manager of the Multifamily Efficiency Program, TRC will conduct final program design and implementation activitiesincluding development of program documents; management of application process; development, management and training of Program Partner network staff conducting energy audits and project financial analyses; ensure quality control; and generally oversee the program’s success.

TRC manages similar multifamily programs in New York for the New York State Energy Research and Development Authority and for the New Hampshire Housing Finance Authority.

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TRC Announces Establishment of London Office as TRC Companies Ltd.

LOWELL, MASS. - TRC Companies, Inc. today announced it will open an office in London, operating under the name, TRC Companies Ltd.

“We are excited to bring to the London marketplace the unique delivery of services and work products of TRC Companies Ltd.,” said TRC Chairman and Chief Executive Officer Chris Vincze. “This marks for us a significant step in TRC’s long-term global growth initiative, and we look forward to company growth through project opportunities in Europe, the Middle East, Africa and Asia.”

Vincze continued, “Our initial focus in London will be in the transactions area focusing on environmental risks on the buy and sell sides. In addition, we will be addressing Environmental Social Governance (ESG) issues, which will be of particular interest to the investor community there.”

John Payne, the founder and principal of The Payne Firm, Inc. and currently Senior Vice President at TRC, will serve as Director of the London office, which opens for business on July 16, 2012. Day to day operations in London will be managed by Senior Program Manager Will Nitch-Smith.

TRC acquired The Payne Firm, Inc. in September 2011. Payne had formerly been operating in London for three years, building relationships in the private equity and law firm communities, providing deal advisory services and post-acquisition support for clients in portfolio companies.

“The London office team already has years of transaction experience with many of the private equity Global 50, so there will now be a dedicated team of professionals to serve their needs in the U.K. and European marketplaces,” said Payne.

As a founding developer of the Eco-Value-Screen methodology for screening ESG opportunities during due diligence, the TRC Companies Ltd. team has years of experience successfully executing the process, identifying opportunities in diligence, and developing execution plans for implementing environmental improvements post-acquisition.

“Since TRC acquired The Payne Firm, our combined strength of services has provided us with an opportunity for significant growth,” said Payne. “Our talented team of professionals looks forward to delivering not only the trusted advisory services that built the former Payne Firm into a respected brand, but also the broader range of TRC’s environmental expertise to clients in the U.K. and across Europe.”

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TRC Begins Final Phase of I-40 Mississippi River Bridge Seismic Retrofit Project

LOWELL, MASS. - TRC Companies, Inc. has been awarded a construction engineering inspection contract by the Tennessee Department of Transportation (TDOT) in support of Phase 9 of the I-40 Mississippi River Bridge seismic retrofit project. TRC has been involved in the project since it began in 1992.

As one of only two crossings of the River in the Memphis area, the I-40 Mississippi River Bridge is a vital transportation, commerce and defense link between Tennessee and Arkansas. It carries 60,000 vehicles daily including much of the nation’s east-west interstate trucking traffic. The Bridge sits along an active fault zone.

“TRC is proud of our long term relationship with the Tennessee and Arkansas Departments of Transportation,” said Chris Vincze, Chairman and Chief Executive Officer. “Our expert engineers are dedicated to improving the safety of the I-40 Bridge and restoring a critical piece of transportation infrastructure that supports both the regional economy and local community.”

The final phase of the project, Phase 9, consists of the seismic retrofit of structures in the Arkansas portion of the Bridge. Under the contract for this work, TRC will oversee the retrofit of an existing P/S I-girder relief bridge consisting of 16 spans, as well as an existing welded plate girder relief bridge consisting of 7 spans. The work will be conducted in a fashion that allows the Bridge’s four lanes of traffic (two in each direction) to remain open. The final construction phase is expected to last through March 2015.

The I-40 Bridge is 3.3 miles long, including the main channel spans, approaches, and ramps. The structure is comprised of 164 spans, 160 piers, and 10 abutments. TRC has provided engineering services for all phases of the project including seismic analysis, retrofit design and retrofit construction.

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