TRC

Recent News & Press Releases

Press Release

TRC’s Sean Layerle Elected to the California Energy Efficiency Industry Council

LOWELL, MASS. – December 16, 2013 – TRC Companies, Inc. is pleased to announce that Sean K. Layerle, a Program Manager with TRC in Oakland, California, has been elected to the Board of Directors of the California Energy Efficiency Industry Council (CEEIC). The CEEIC is the premier industry trade group representing non-utility companies that provide energy efficiency services and products in California. Layerle has been recognized by the industry as a leading figure in the state and is one of the CEEIC’s youngest elected Board members to date.

Layerle joined TRC in 2012 and has held Program Management and Consulting positions designing cutting edge energy efficiency and demand response programs nationwide since 2006. These include integrated audit, retro-commissioning, monitoring-based commissioning, retail demand response and wholesale demand response programs. In addition to design and implementation of demand side management programs, Layerle is an active contributor on a variety of regulatory and policy issues and sits on TRC’s Executive Sustainability Committee. This appointment represents an expansion of TRC’s ongoing participation on councils and policy committees across many industries.

About the CEEIC
The California Energy Efficiency Industry Council (CEEIC) is an industry trade group representing non-utility companies that provide energy efficiency services and products in California. Its member companies employ thousands of people supporting the efficient use of energy in California and throughout the world. CEEIC supports appropriate energy efficiency policies, programs, and technologies that create sustainable jobs and foster long-term economic growth, stable and reasonably priced energy infrastructures, and environmental improvement.

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Press Release

TRC Supports Successful Roadway Widening Project in Visalia, CA

LOWELL, MASS. – Nov. 25, 2013 – On Tuesday, November 19, engineers from TRC Companies, Inc. joined officials from the City of Visalia, California and other dignitaries for the grand opening of the improved State Route 198/Plaza Drive Interchange. TRC performed the planning and design for this $26 million project which will promote economic growth across Tulare County by improving access to employment centers and enhancing the movement of goods.

“TRC is proud to have been part of the Plaza Drive Widening and Interchange project,” said Mark Imbriani, TRC Vice President and Project Manager. “The wider roadway and enlarged interchange will alleviate traffic congestion and provide better access to Visalia’s Industrial Park, which houses many major product distribution centers serving the Western U.S. With better traffic flow, fuel consumption will be reduced and air quality in the area will improve. Travel time for motorists will also be reduced, and safety will be enhanced.”

This major public works project commenced by the City of Visalia in 2008 widened Plaza Drive from two to four or six lanes over a distance of 1.5 miles between Airport Drive on the south and Goshen Avenue on the north. Auxiliary lanes were constructed on SR 198 between Plaza Drive and SR 99. The work included widening the structure overcrossing SR 198 from three to seven lanes to improve traffic circulation and capacity. Four retaining walls were required to minimize impacts to a hotel, park, and high-risk utility fiber-optic and gas lines.

TRC has worked with the City of Visalia since 2000 on three interchange projects on the SR 198 corridor. The Plaza Drive Interchange project won the 2013 Project of the Year Award in the Economic Development Category from the Tulare County Association of Governments.

City of Visalia Plaza Drive Interchange Ribbon Cutting – November 19, 2013
From Left to Right: John Rowland (Peters Engineering) – Traffic Engineer; Todd Lambert (TRC) – Project Engineer; Justina Conklin (TRC) – Senior Transportation Engineer; Fred Lampe (City of Visalia) – Project Manager; Adam Ennis (City of Visalia) – Public Works Director; Mark Imbriani (TRC) – Vice President / Project Manager; Amy Shuklain – Mayor of Visalia; Glenn Armstrong (TRC) – Transportation Engineer

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Press Release

Public Service of New Hampshire Awards Substation Improvement Contract to TRC

LOWELL, MASS. – TRC Companies, Inc. has been awarded a $490,000 contract by Public Service of New Hampshire (PSNH), a Northeast Utilities company, to place a spare auto transformer into service in Littleton, N.H. The project is one element of PSNH’s 10-year plan to update the electrical grid in New Hampshire to ensure the more reliable delivery of power to customers.

“TRC is proud to continue our long-standing relationship with PSNH by supporting their efforts to upgrade the power infrastructure in New Hampshire,” said Chris Vincze, Chairman and Chief Executive Officer. “In partnership with PSNH, we look forward to delivering project solutions that increase power reliability and improve service for their customers.”

Under the contract, TRC will create a new 115kV bay position so the existing spare autotransformer at the Littleton substation can be placed into service. The new transformer will link to the regional transmission grid via a new 2,500-foot tap from National Grid’s 230kV transmission system.

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TRC, SMDA & AEW Win Environmental Award for Innovative Program at Michigan Landfills

LOWELL, MASS. – TRC Companies, Inc., together with South Macomb (Mich.) Disposal Authority (SMDA) and Anderson, Eckstein and Westrick, Inc. (AEW), has been recognized by the Environmental Management Association for innovative rehabilitation of former solid-waste landfill properties, using a combination of technologies including phytoremediation.

Representatives from the companies accepted the 2012 Environmental Achievement Award at a ceremony at the Detroit Athletic Club in Detroit, Michigan. The SMDA submitted the entry to the EMA for consideration for this year’s award. A panel of judges of the EMA chooses the honoree after narrowing the finalists to three.

SMDA, with AEW, engaged TRC to design and execute a remedial strategy that would efficiently address the environmental issues and capture contaminated leachate from the 80-acre site in Macomb County, Michigan. Five municipalities used the landfills for solid waste disposal from 1968-1975. After remediation, this former landfill site is now a park-like setting, being used by pedestrians and families.

Phytoremediation is a process to decontaminate soil or water by using plants and trees to absorb or break down pollutants in lieu of traditional pumping systems. The four-year project helped bring the SMDA into compliance with its regulatory obligations, allaying concern of the environmental agency as well as neighboring properties. Moreover, TRC’s innovative remedial design resulted in an efficient post-closure care plan, which streamlined post-closure obligations without compromising effectiveness or safety.

“Addressing the liability and legacy issues associated with the closure and post-closure of landfills requires expert knowledge and modern, innovative, cost-effective solutions,” said Chris Vincze, Chairman and Chief Executive Officer of TRC. “We are proud to be recognized by EMA for our work on this project, and we commend the SMDA for their commitment to cleaning up the site for the benefit of the surrounding community.”

“The SMDA’s Board was convinced that phytoremediation was the best and most cost-effective solution for this park setting site,” said Roy Rose, President and Chief Executive Officer of AEW. “TRC has done a great job on implementing a remediation plan and following through on the construction.”

“We are very pleased with the creativity and professionalism that both TRC and AEW have demonstrated throughout this project. SMDA was committed to resolve the landfill issues, and the ‘green’ clean-up strategy developed and executed by TRC was both effective and efficient,” according to John Chirkun, Chairman of the SMDA.

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TRC Acquires Utility Support Systems, Inc.

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 Georgia-based Utility Support Systems, Inc. (USS), a professional engineering company primarily supporting the power/utility market. Financial terms of the agreement were not disclosed. USS reported net revenues of $11.5 million in 2012. TRC expects the transaction to be earnings accretive in fiscal 2014.

“The acquisition of USS adds critical mass to TRC’s fast-growing distribution engineering and emergency response practices and expands our footprint in the key southeast and Texas regions,” said TRC Chairman and Chief Executive Officer Chris Vincze. “Acquiring USS significantly increases our technological capability with highly trained and seasoned engineers to better meet the increasing demands of our utility customers. With approximately 280 employees, USS is one of the top providers of distribution engineering services and storm response in the southeast and southwest markets and has established relationships with several large power customers that are new to TRC. This acquisition demonstrates the continued execution of our strategy to expand TRC’s energy engineering capabilities and further supports our cross-selling efforts in the growth of our total Environmental and Energy businesses.”

Utility Support Systems Founder and President Cathy Arnett said, “Joining forces with a larger firm like TRC will provide USS with the support necessary to accommodate increasing demand as the market for emergency response services continues to grow across the country. TRC is a great cultural fit for us and we are excited about the new opportunities that will be created for our employees. In addition, our customers will benefit from TRC’s extensive suite of service offerings. Together, we are now one of the largest distribution engineering service providers in the nation.”

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TRC Continues Work to Deepen Energy Savings in New Multi-family Homes

LOWELL, MASS. – TRC Companies, Inc. has been awarded a contract to continue its implementation of the California Multi-family New Homes (CMFNH) energy efficiency program through 2014.

The $5.5 million contract was awarded by Pacific Gas and Electric Company (PG&E). With the ultimate goal of transforming the multi-family new construction market in California and helping to achieve California’s net zero goals, TRC will help multi-family new construction developers in central and northern California achieve greater energy savings through design.

“CMFNH’s energy efficiency program serves as a model for its far-reaching, long-term effectiveness,” said Chris Vincze, Chairman and Chief Executive Officer of TRC. “We look forward to providing continued support that helps achieve deep energy savings in new multi-family homes and greenhouse gas reductions for the environment.”

TRC’s energy efficiency experts have supported the CMFNH program since 2006, delivering sustainable solutions with positive environmental and financial impacts to the residents of California. In the next three years, CMFNH expects at least 8,500 dwelling units to complete construction that are currently enrolled in the program. Collectively, the units are expected to receive more than $3.4 million in incentives as a reward for their expected energy savings.

From inception to date, CMFNH has saved 3.7 million kWh, 3,300 kW, and 731,000 therms in installed energy savings. It has distributed more than four million dollars in incentives to 226 projects that achieve an average of 26 percent better than the Title 24 Standards. The program promotes changes such as optimized building operations, minimized building loads, and improved system efficiencies. It is funded by California utility customers and administered by PG&E under the auspices of the California Public Utilities Commission.

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Press Release

TRC Wins Two Marketing Awards from Boston Chapter of SMPS

LOWELL, MASS. - TRC Companies, Inc. accepted First Place in the Integrated Marketing Campaign category at the Recognizing Outstanding Communications (ROC) Awards for Marketing Communications and Marketing Achievements on June 13, 2013 in Boston. The team was also recognized for Best In-house Design for achieving the highest scoring entry designed by in-house full time employees.

The awards were given for TRC’s three educational seminars in Maine, New Hampshire and Massachusetts for stakeholders dealing with the challenges of PCB contamination in buildings. Entries were judged by meeting campaign objectives, graphic design, effectiveness in reaching targets, and marketing results.

“We worked closely with our subject matter experts to implement an effective educational outreach program that has helped us convert prospects to customers,” said Angela Cincotta, TRC’s Director of Marketing. “We are truly grateful for the recognition from our peers.”

TRC assists building owners and property managers by identifying areas of concern, developing overall management programs, remediation and waste minimization plans; negotiating plan approvals with regulatory bodies; identifying qualified contractors; overseeing the abatement of PCB contamination and source components; conducting air/bulk sampling to validate job completion; and monitoring waste management and recordkeeping.

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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,
2013201220132012
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 www.TRCsolutions.com. 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)
(Unaudited)
Three Months EndedNine Months Ended
March 29,March 30,March 29,March 30,
2013201220132012
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:
Basic28,99827,88728,77827,733
Diluted29,65428,94329,54728,619
TRC Companies, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(Unaudited)
March 29,June 30,
20132012
ASSETS
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
Goodwill28,36024,888
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
LIABILITIES AND EQUITY
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
Equity:
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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