Tetra Tech (TTEK) 31 Jul 212021 Q3 Earnings call transcript

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 company's corporate office at (626) 351-4664.

As a reminder, Tetra Tech is also simulcasting this presentation with slides in the Investors section of its website at www.tetratech.com. This call is being recorded at the request of Tetra Tech, and this broadcast is the copyright property of Tetra Tech. information of or Tetra this prior without of permission written Tech rebroadcast in part whole the Any is prohibited. from and Financial today Chief us management Batrack, Dan With Chairman Executive Officer; Steve Officer. Chief Burdick, are and They we'll for up and the open a will the brief provide of results, overview questions. call to direct statement safe in today's I'd like the to presentation. your attention harbor Today's financial expectations. discussion contains forward-looking statements about future growth and described statements in from due differ Tech's results significantly those including projected the today's uncertainties, may filed risks various to reports forward-looking Tetra risks periodic SEC. with and Actual in the obligation as update law, Except by Tetra required forward-looking Tech takes no to statements. its

Web In references, [Operator I that, like be the will posted go Instructions]. presenting to as financial would call over Batrack. Mr. turn GAAP Please financial Tech's reconciliations Batrack. are measures Section addition, to site since appropriate ahead, Investors Dan in With some management the the non-GAAP Tetra of

Hilary, our We third morning, net an you good and at had and very Thank revenue, an operating excellent to backlog. of had high earnings much, quarter record third end share. quarter, quarter this income welcome results Great. the And per with all-time we XXXX for and conference year earnings fiscal very call.

is Financial Across an aligned our approach Overall, per advances infrastructure a capital water welcomed today's practice. outlook energy. fiscal for extraordinarily significantly supplies our net Chief close seeing and demand Science performance of our sustainable the third our Steve the United Tech share. that address priority XXX focused see strategy programs who with to buildings high-performance had quarter detailed over environment, with of all a with build Just we're well review Tetra financials address highest year customers, I overview after stellar customer and of then and and and our strong will water, increasing for markets, and climate that to our quarter, begin of on operating Burdick, to revenue, Leading Hoare renewable global more change, we the Tetra also and followed Lea record team adding the facilitate million per $XXX Tech, staff Kingdom for a our guidance earnings by Officer, very provide quarter I'll fourth allocation. I'll We in of for transformation now third cybersecurity. digital secure XXXX. income earnings year results in

for Tech Our net last up XX% revenue all-time $XXX Tetra at high any was million, of an from quarter year.

our up Department increase work, civilian was revenues had a programs. of development had per $X year-over-year. operations at the and year. international from approximately share State our performance Our of the disaster Work still infrastructure XX% up were of earnings ending local company, for was prior I'd billion, and year-over-year our municipal broad-based net $X.XXX customer. all-time strong -- US almost the billion was including us which of the in of sectors, adjusted up very work response continued response included episodic across disaster that $XXX our growth revenues quarter quarter, for Trans. prior clients for year, a a we major X% million and third end new our water our quarter This XX% to now generated $X.XX, the our in rate growth Federal quarter record overview year-over-year, and by backlog the our municipal When growth an XX% organically we up XX% our provide from by like for for an work. and agencies set in the driven all

driven Kingdom was in last revenue year. by Australian Canada, from We for saw the broad-based quarter, XX% revenue United operations, orders our environment the in and Our sustainable services. strengthening infrastructure in XX% business international net of up water, our and

slightly XX% from Our and was net in of the down was it commercial quarter, revenue the business X% prior about our US year.

was a year-over-year, year-over-year, with significant multiple by for the data While work environmental which our resurgence economic revenues -- associated that our from downturn expanding XX.X% somewhat the Commercial resulting clients. XX%, the recovery or was utilization revenue by Group double in for work Government regulatory-driven Their segment. line analytics quarter, basis markets slower programs revenue business grow, GSG and our plan International of $XXX was fiscal have their segment's the The XX up margins XX% margin XXX had basis continue digits, Services across points higher two quarter, margin a growth to while that In by right that I'd The or performance the margin for increased our margin services Group design segments operations. an by Revenue we higher number margin Their in segments. our XXXX. end discretionary across in by strong up the our XX.X% for and and and the at saw much was a driven driven year. increased GSG in municipal CIG high revenue end, renewable drove growth our and the industrial segment's in points present the international energy also of now high-value prior operation a pandemic both were resulting the million, that year to impacted like segment, grew in third by performance we quarter. our been margins. by

backlog. quarter we that the had of the One best our in was metrics

for backlog the commercial, In markets, quarter, booked revenue Even across orders programs a had of X.XX, quarter, the quarter book-to-bill in ESG management. record a change the a included advanced excellent for fisheries business. is significant end $X.XX quarter. visibility into we climate new that the high which the record the giving state at development our our the We this the all-time sustainable of book globally Orders new of company. Our and remainder local areas of had federal, we year. broad-based priorities empowerment, international of international us quarter, strength in of book-to-bill, reached and the billion demonstrating a women and

also U.S. in with U.S. to programs We contract Corps over infrastructure sustainable Army the the new and support priorities environmental capacity government's of added $X billion in Engineers.

Now I'd like to Steve Officer, to Burdick, the turn of present Financial presentation Steve? the details Chief quarter. financials our the over in to our

revenue the I'd now third Okay. our as as the our in the year. like Thank to you, first of of net the months XXXX condition GAAP quarter as Overall, results our X end fiscal revenue financial last Dan. revenue This million. for financial million year. well third amounted $XXX XXXX review from of our quarter came range of when was compared million. million revenue was to third $XXX fiscal towards better to $XXX $XXX guidance upper of to quarter and the and much The net

XX% by clients our response Our last share to was improved analytics per was for for conditions earnings for net to year, our net and U.S. strong the our the operations our water XX% clients, revenue revenue revenue And over up and operating restrictions economic year. positively from and international federal pandemic. COVID for due compared our and Similarly, when state was improved. and global up margin last loosening environmental advanced revenue resulting profit demand disaster and local impacted over last year, services,

which the up came our end compared due improvement was year's $X.XX guidance Our last to The at $X.XX up in better was year which than the came and adjusted share results. in top year's this higher better when prior range QX adjusted by quarter, EPS in million and XX% quarter to per of than results. from of operating income, compared XX% year to prior the of XX% our earnings $XX XX% the and we the third by of last $X.XX when

Our we year, providing improved technical in operating our an driven end last clients. consulting services continue on and focus over described, margins was as higher segment income to as engineering to Dan increase our by

remained quarter quarter, $XX flows excess from generating up higher-margin we So before, generated basis XX segment In positive GSG as on basis points. was our of a was focused XXX CIG totaled an Cash XX.X%, XX.X%, the which up margin about flows even million. which and better operations third points also talked the net realized income. in cash of of Dan realized for the

also for XX%. is fiscal Year-to-date, improve We capital a from in working $XXX operations, 'XX, sales DSO. ahead to continue by and decrease which cash management benefited we've million last from in our year or generated our outstanding days flow of

DSO Our has X in decreasing to and cash resulted and the last as our XX time. improvement of this was days third working this year at an days quarter, of focus from on capital flows

acquisitions strategic last dividends last amounts debt million. as million as buybacks $XX which is stock over used we $XXX as Our million. months, to $XXX cash of to in an amounted our for net improvement year even to well the XX and compared This

for of in balance investing Our our the the providing managing long-term shareholders. capital of strategy allocation growth to our sheet balance returns and business, calls

XX trailing months, or from share. was $XXX operations $X cash generated over the million per Over

to for we and shareholders benefit significant cash this providing through buybacks. position During our from continued quarter, the share third returns dividends by

stock that and Regarding million want announce increase in million we is our in third over million which a XXth be consecutive in $X.XX Furthermore, August our rate for to at we XX% Board our buyback we under paid of the Directors quarter, the $XX past $XX.X stock buyback dividends, program, previously of program. of approved and dividend, month dividend program, per an our quarter share, $XXX our I have will approved paid during remaining which out the last utilized year.

through our million strong and ensuring buybacks. have our So we to allocation as $XX that liquidity. our is strategy, But year-to-date, just both returned and implementing as shareholders important all sheet told, balance ample our we've a dividends capital share

We funds have $XXX a end over the leverage in of QX, both current agreement. hand has current the X.Xx at and in cash on available available balance our our of under which form sheet million of credit and liquidity terms of of

the and Tech Tetra fact, with result, added a And areas, results we presentation which I'll technical your such is to and and [Indiscernible]. the organically sustainable this continue most a presentation. third design, hand growth acquisitions such a I pleased to Dan in for invest these that thank through financial to strategic financial back this leader Dan. in both this for quarter as firms and share week, just recently, later capabilities support, As in over engineering discuss in Lea, I'm to Hoare will we want you top-tier quarter. in position

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growth We sustainable expect planning need protection to long-term clients. our for be and water critical supplies, by local coastal for led zone programs disaster

more than rates Our long-term to XXX municipalities experience in to is growth with market. this significant strong our key maintain ability

US more transformation across and both change, to address leveraging rate, federal grow the to XX% climate priorities work agencies. contract to billion environmental Our expected protection the capacity at and civilian $XX defense in in federal a XX% is digital our than administration's the

We work grow and X% services driven energy US support. our XX% expect rate, to year-over-year differentiated to a environmental and by program at renewable our commercial

on work revenues across to at international focused Australia United Canada, is emerging to rate on buildings grow regions with increase XX% leading commercial growth in to three see in now I'd geographies. and All areas. year-over-year give broad-based government growth the for offshore double-digit our strengthened and strategy. and our a XX% we are wind work area as have renewable with at clients economic the high-performance like infrastructure both an in our update Kingdom you energy place a rate and to initiatives to continuing expected programs. conditions, new the finally, put expect And programs We these our those grow our

and environment collectively in for we've is highly important on line a building and of our estimated market energy. this on around with the higher been focusing expanding Over design the account that clients. service emissions to few past to is our increasingly renewable focus significant are synergistic the world's efficiency in world carbon XX% Buildings water, years, greener

water increase emissions Our decarbonizing Science efficiency our clients' can to address goal Leading and by reduce energy reducing and and approach with buildings usage. significantly

we We're us, Our a advanced simulations solutions recycle and more revenue for initiated net it's and over healthier to efficient designing airflow size energy, buildings. our water for their optimize generate water market zero and our effectively energy tripled now in high-end use This clients. growth designs is since creating $XXX own just building year in million create that strategy. systems and and

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focused per and working us we'll has the has can strategy began target a high-performance federal government, actually our revenue year $XXX achieving on us many like increase been back today this primarily further data XXXX with have the year I We're for fiscal our and that remainder our in of to fourth year. today, Now US for guidance in XXXX. And with really that for government target services a now million all sixfold civilian year since for million continue the agencies. we are the XXXX. and resulted a this federal and Both $XXX to of guidance our increasing buildings acquisitions analytics of quarter expand growth in per revenue, for others the us present for strategy, advanced our we to programs contributing

to share a for $X.XX is per guidance our of revenue net range earnings the quarter, $X $XXX fourth with of quarter. an for of the associated million For to $XXX million

entire of year, with share the for and XX% guidance range $X.XX. tax year does for XXXX of fourth does $X.XX to an for the of intangible associated net billion This $X.XX is revenue It with revenue, estimate increased amortization Lea. quarter. include of annual For rate per guidance net to earnings $X.X billion, associated new updated acquisition Hoare increased an fiscal the a amount that's the annual

net operating diluted financial absolutely end and may backlog In now revenue, year. records quarter excellent that exclude new We from per summary, earnings the third we of we have had additional complete metrics. between contributions share, XX.X and income, setting for many an and outstanding million other shares the any does acquisitions fiscal

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Our Capital Instructions] KeyBanc [Operator question of Sean Eastman Markets. from is first

this Congrats on Alex is the This quarter. for morning. on Sean strong

the of my one condition so budget completely the is, time So has this first to last compared and state year. local flipped

the our so, advanced? is of projects that starting And changed local sustainability shake be Tetra see in start up to state So the be have at utilized advancing Tech and if pandemic starting one agenda? all priority the and clients, areas federal they for with to to government funding

Well, frequently level. impact seen the it's one that is, and question, and state local federal positive have from funding somewhat it's good received the really we a actually at we

pandemic very, for have could actually color at government. for, of come items. the very used funding received being they've we've us, whether out from from applications to from fund the of we pandemic that general demarked initially is whether few funding their just But certain the their specialized it's general what what it's applied budgets of from coming the seen, or many not that For or targeting from money address not the bonds be had exception or of broad or dollars funds or a initial from the be seen it state. have whether with federal came different And instances, either the not it existing the strength not own the for

I federal in the has we're forward. has programs financial federal a following the the water that to in to protection, that to go now allowed we've government. government And does state to speciated budgets funding continue federal been It from or been and seem go that's forward. the additional coming programs confidence forward. years that place Priority to go give protection, out overall years, certain for seen just it's the that have were water as and lack for to have storm water of with We we years, have a California. have from funds us of coastal confidence for increased capture other having respect programs, many seen We're then water And reuse, water that in a here coastal water supply. such sourcing to programs desalination, the move Southern been priority headquartered the that think funding a hole environmental forward. strengthening an on, not really for having continued combination projects caused focused But both slated have it to projects come programs,

seen had not we've coming specific it scheduled they've divided it's where overall funding from, to into programs the an of years. but that just strengthening buckets as for of So

And the there, Tetra the portfolio to around potential business? market a synergy up analytics lot trajectory you capabilities portfolio through a growth Tech? deck, one, then or of the specific heard investor the now in guys legacy opportunity this is Tech but the next has relative rate revenue we outlined targets that And is us and the that on refresh about in growth of the advanced And margin could have the you then built to acquisitions. Tetra

to first. Well, answer from that I'll last

in a what growth Department Federal civilian has higher in with points we the carrying seen US is given we've is within market. that analytics, Tetra very, fully demand. it outlook a have has increase and specialized markets fact, overall Tetra has focused margin, few With work on carried the our margin higher bit the and which certainly new the think we're being general are development, that I been that we've what it that seeing aligned higher but priorities helped State more very actually the our overall services, is going respect the GSG do margins, been Tech. higher and a that It's rates forward. to Defense, believe in international as IT seen in than do of percentage for advanced we areas for general I up, synergies administration's that's And We've Tech our it agencies Department, business high. our embedded USAID,

this of additional we've market. actually And a tools while it's bringing grow not revenue it some in of is see do areas for to priority acquisitions requested actually the together, new take that software only it. strengthen And we've exist we don't us, big promising that our and that see So packages us in more. technical a consulting, The differentiation by the to management in for portions by we more more been one supports by and to area hold. clients services and subscription been recurring the beginning been area actually seen put beginning hasn't it giving

even as our in we an that drive So more margins see it of this emerging will do area quickly part business.

and hearing about a by we're from water doubling the already the environment We down one since and Last can great there's strategy. if there. more high-performance you create side? wondering a were story me. Since more such distraction just if it's building value on And

be So the context helpful. some sense would color strategically broader deploying makes on why here resources in

designing We the in in into a is, you actually I by that a was addition such the or recycling, that how pipes do program facilities and program as treatment processing. and business have we are have the they pumps this and glove. mean structures and physical water chemical see they originally what And to water if buildings, got water hand by the

footprint that, net by are been the carbon to And structures to physical of design physical requested carbon the addition has now can our that zero their In clients. amount structures. that decrease actually

with so an or projects change associated environmental have or structure climate a that that we program them. And rarely see water have no a

focused on to high natural so And a for buildings just actually us. the move of it, component be it's

as their earlier in we and the years. environment in water, stewardship of programs our performing by part environmental were requested that clients In fact, it was of sustainability

actually has how area outgrowth. are natural the of services why discontinuity have core complete in this? going more building our address not a with an company. of address not would And as to request in fact, the actually would a create synergies that to just is we And we this clients' to this with distraction respect So to

England next Our Berenberg. is question from Sam of

point. on wondering forward, just perhaps you do the there going Just platform you're in of you the in think some scale the buildings to that need other to to you're I that now M&A Or to grow geographies need in? a the that do was going got type targeting you follow-up of that space? sustainable further if you've operate

We really the in the that Hoare to major add. that we do think U.K. Lea last was piece needed

to significantly that looking on be was communications the the still on add in a about level respect a But areas now, us. filled We that have presence advanced consulting in significant [hiring] that niche Australia Hoare we're region practices Lea out a had Zealand geographic can we think but been some looking Asia the United Kingdom Hoare most New West the Australia, East the that large that with We've and services we'll fills the for and of We years market underrepresented Coast. niche company States, and in for elite and that a coverage United think Pacific Lea primarily design really added the work and do for low do practices leader, one the four have be as end and practice to corporation. are we have in we're But buildings. high in. the components. area specialty that We both there

the view changing, lower the point that clients wondering through your with hand margins what a there's just is and analytics, long-term you're then where margin whether doing or on the making I can the And pricing? was have back you side, you're achieve work around improvement is to margin you on to any improvement the

to have work dollars One and that highest to the very and the we're seen really that, what at is IT. think value at I clients. Tetra here end about we're Typically, very that we at not hand to the is providing include services looking so. technical commoditized. be to do -- back the highest advance the talk to commoditization we we've Tech don't have been the has would is goal offerings we'd What services, that components to to of of of

price government. in component. are on the It the could value work cost-plus more We getting rather be with case fee an a proposition of a fee of fixed fixed award the

the that we've our that on addition to in basis, back actually more the company actually margin, on base not and award identified an rewarded can so fee fee, be to of value the areas the typically that to being contributed have the range And just the client even receives, put bound been based in such price. value

And area, And the it's which typically We're because of in bound bar. point new includes in services adding the expect no, fact, that, I services today being that costing And we've is in will federal these that point that see been the looking so margin marketplace raised range actually the of with models clients. more achieve all. state, aren't would down inflection not capabilities only -- actually that, come hitting higher commoditized. that government don't at nature a we because new at and and margins spoken offered the actually of of, but local then

of next of question Group. Maxim question Sullivan -- [Operator Andrew Whitman from Tate is from Instructions] next Our is

if catalyst And a please? for build that can it is I business, I'm that missed forcing sorry about -- it, Dan, for new is net talk buildings business, opportunities different you zero? to regulations mostly go Or

growing new water efficiency, is meet say would a one, energy self-sufficiency. and builds for that, there requirement recovery I regulatory certain to Well,

or allowed healthier office, buildings of higher more that especially the tenants real for at are staff more we with providing new of this more facilities are is attract And call design component your looking home. for to what whether or in not it productivity buildings safer have, location bigger it's workers, you estate and market are a workers that we you're their returning that healthier or or pandemic, their tenants is whether one that the are say and safer grassroots, at to one for environment. your it's they're they for safer in healthier, of are are I design and drive it. work office industrial axioms is I buildings looking But order individuals the would to keep that buildings, the as buildings, efficient, that the design has and within the for the our than So

fact you present. the of it potential to the concerns the to through renovation, familiar building owners the with renovation more go actually than game their that the from address and other being have to be and is coming to pathogens that all health pandemic So up is for and sort is would drive

And so we're leading in that area.

bit change. buildings? top-down So from yes, that there's protect the little is grassroots the from Did and from address a drive occupancy to of passed any want regulations a to than is in just grassroots climate be a actually and given much And And fact, driving more sustainability this it's it it our or the and the actually like the planet up regulatory would the portion, to regulations. we legs geography. a come of it has demand but precursor that to regulation we see that

mostly their the business? building, a it of percent of UK in UK acquisition terms of the same of the And is is most the And in it the high-performance buildings about US is in current terms practice? terms of of the adoption recent ahead opportunity or in

to in new in actually to going standards requirements adopted respect been to it's think would the a with US. lead new reduction. usage with here building come haven't ahead. that specific that out put category be certain targets They've energy I fully Well, be them The

to regulatory So lessons the some in of states. out meet that in US practices we that will they are to it's world, developed US in and that the then certain expertise the can the now a learned be here. the meet the of UK and some best-in-class we've U.S., to taken and exported capability to do requirements over just precursor And have as are be certainly retransferred emerging the there requirements coming think

communities Our high very very, requirements. have building

buildings but reducing not And as so believe in world. from for best-in-class, and the UK will around regulatory the owners a the Australian, differentiator exceed true order a used meet overall of the requirements attract our operations, be just decarbonizing building US actually or the occupants new and while marketing, be and to as collaboration we footprint both

ahead estimates for that enormous be of are both So large and bit to and respect on as UK a on dollars spent, is for number financial the new is, with regulatory. a to how compliance it's the renovation There buildings. to

practices. through our collaboration of So high-performance the see an awful buildings lot we across synergies

And and question. recurring mean, then separate from sense makes that analytics do you small the had -- Is I mentioned opportunity? part business. have it's growing is not data targets, just or I software, revenue now of you growth heard a or a piece data right very big it that how certainly, that

it's now, right small very small. very it's Well,

can and than we had actually of that we XXX with methods evaluation place, the in environmental will place it, that monitoring monetize worth impacts ongoing it and It only world in have more for and it is consist airport use save I've do embedded that their at money. have but we them new these software up of instances, for put of software art, our XX We that Tetra them investments our in will that analytic what of clients. in cities and analytic allow other some and these evaluation other years' tools us consulting in assessments of subscriptions around we we've corridors continue the that the automated in that -- and more do made on and proprietary engineering of keep Delta state utilize can for for The to we and is this the carefully flight environmental software from put tools at by past. and air we goal items. We different clients, the spoken something we're that packages. approach approach part the have for a projections the is have corridors which the looking And software, how work, tools Tech cannot

Wittmann of next W. is question Our Robert from Baird. Andrew

slack higher? and accomplish utilization? of and time I'm what this And Or for importantly, enough with is maybe outlook [with type there you don't it is then but hiring mode? bit. double-digit here talk you the in margins, word, Slide Dan, were over you've like the I get the kind ebbed to for of do to imagine Obviously, utilization the next XX, few growth the kind know through Tech quarters. where about the Can this the push into have Tetra trajectory I wanted XX enough, give Does pandemic, you months utilization to at, more sense put to implications a us could team a with to flowed. this the ultimately of portrayed utilization trying how that there points little Certainly, but we and lens] feel have of on I do the available of past even, that quarter? the

I go onset. there to overall, Yes. has items the that on, good see utilization. question, less and we up that. ebbing utilization little would it conferences say traveling of pandemic was when there actually Andy. Part It's a when came other the and a first like flowing bit of And did was of been

and you analytics expansion higher our been to the there utilization half eight XX data quarters. that of the has increase. XX looked to from months And of say the a recently, in fact, gone actually a been few to I bit margin. services, services particularly past that say about been government over and other in up, last four from in has the the government has the contributor primary to utilization, on demand services. government expansion in So our was the out, But I'd and margin it's half parse advanced if would quarters, or higher and

revenues. thing you note last would this one we had our growth and state the Now quarter, local exceptional in

over So this XX%.

third work was And commercial have XX%. grow over fungible to could can our one work. I'm commercial wonder, glad thing hydraulics accomplished, -- we recovery use respect engineers, and work very or Australian we treatment with on to platform, or that federal the an did the an quarter our if geography. local a saw government The But you XX% quarter in really exceptional the was well you then project? some international for being or and at And that is state on our and whether would scientists see U.S. slow physics You we The be answer local, on water common started be in this work state -- this of and to quarter, issues other international. cloud, least quite this or not last engineer current case, many that work that with a area yes. utilized or this the we in is, and change platform, American respect to in the one they're before don't civil to so staff you're have years slower, hydrology common the sole at may move to compaction pandemic company a down under a to

margin. been translated have And the increased staff for so the our able use increasing board, has company. across we into utilization It to

adding than and restrict in sufficient a You saw staff. and this hours, more we to mean here as from we've resources quarters? the or hiring capacity bipartisan respond would work over ability the get mode, even resource adding Commercial has staff -- to that U.S. XX rates active have XXX have position additional add in numbers, growth XX% on recruit that come infrastructure a But work out enough just your our that but with we're believe With it. think And to capacity work forecasted seen see because capacity staff deal the that are have handle because that just could our been program, anything and to staff. to XX% over ability again work backlog are you we last stimulus increased just have to can do Group coined we in embedded our with and you some don't the without contract to basis we do have we few last the I any the today Yes. we put and quarter. yes, handle respect staff, growth of International next points in the it's for to we doesn't we

have ability clients forward the contracted a still and to move basis. You the to the contract, have on

So all I in above. position in think of the good we're a

standing have resources, have we in long-term We in the client, place. the contracts relationships the

form the focused may of please, you there's than we maybe as comment, be considering just I now vacation. taking deferred on more on kind some guess, And that or question factors? if may they get have into margins? again on traveling able comment not year fact they elective people people guess, that could the reopening the have your or But factor you of on that even I in did. Could being to last we should people perhaps to just the fiscal the go of that now margins. are another Could kind your these surgeries impact might those trying reopening any at on be think 'XX maybe of

across the past put It's priority folks all families and one a thing vacations, really with economy their on that for US additional or the our of reducing of and I've themselves an opening restaurants a both been this and rest for is priority. good years, the the either of haven't put question. operations, have from half and in opening The up and board travel heard restrictions traveling one internationally, the and

more we've obviously And in in we already. cost our se impacted third going I quarter. that's across vacation did be the a think actually just in quarter, we that QX, guidance It's do a high. completely records take do embedded our here the fourth But and context, third guidance fourth will to vacations. the So little record per the place. represent already actually the this think for the quarter last not board, do are put there more this great set bit. what of of our proper just midpoints have that we fact, guidance because midpoints quarter while will to It's had vacation. we a for for And in clips Utilization accrued a the just

sheet. our in it's already balance embedded So

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it respect to so us with helped has And recruiting.

Kansas and Southern work can that in you well in project may other but come Tech California, Tetra live some geography. on very or is a to You

in we staff that offer as the technical second a flexibility to the the to think, the looking innovative I best, the so brightest, for What clients' our And none. corporation and most #X is is, solve leader -- We're we're water to bring to looking to get problems. to bigger. of We're just be looking environment, sustainable continue more smarter areas not infrastructure. be people on and to a get better, market the

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Our next of Dilts Noelle question Stifel. from is

in detailed have particular offshore growth strength just of had one relatively in answered, as question about the my been questions lot but with you that's talked I double-digit wind. renewables

there offshore I how pretty understanding you're terrestrial wind, the with in solar. curious going and then particular. of on is still wind So there. we're was lot early of around innings also, But growth is opportunity My about a thinking activity kind

So the markets? for also how you're those thinking outlook about

wind is promised. offshore Well, large

actually government offshore. pay Some leases wind large rights lease certain of to rights have the sums in federal development to very, obtain very the by required and offshore developers order

with items for impacts for well any water the they obviously, moving all that puts upfront that the amount offshore prioritize investment evaluation Tech impacts do respect quality, upfront, the fisheries, up forward. it. And required when, at entity of are line to to marine offshore with it mammals, Tetra sedimentation, So very rest

it us. for why that's So fits well

nascent stability wind wind recurring, has on long-term reoccurring but up that West Coast, our of some that deeper. waters after long to And we be not oceanographic be And a the just We we'll fits because on anchoring Coast. of those in offshore. offshore it really gone the the the offshore a do goes not that's the actually of it continue further from the will the company. because and much because water founding capability also lot so revenue are tethering with that nearshore, have It's very, that back where very the foundations areas are phase the offshore, work it's would here turbine but from to the monitoring, like East monitoring quality all way up

that of also So has those a are see opposition it certain offshore of it's of we because priority the the complaints less why wind, reasons we extent. that's really sight, investments. and a to because It it's has like out if instances higher in out citizen most

but big actually fish interesting, to by we method are that's But minimize wind the there the being of and a call -- say generation it in it's as also more with And hydro. been raising call given just certainly simple of the wouldn't equal efficient, been removal requirements. or certainly would one renewable increasing whether addition even repowering passage. actually or terrestrial geothermal, why Canada bypass facility largely for been it's of one hydro for onshore or deemphasizing energy US, and thing have has tubes that. and revolved the new there additional and on offsetting And I are around solar in new that's whether by interested wind, fish not or of chambers or some or that has largest respect fish adding the a conventional more very is not turbines been methods that then we're not it passage. fisheries, And has an as dams, that's conservation there's environment the with So hydro output that which much penstock of drive a

one impacts. is fisheries and respect there habitat, the for generation dams, an and not a to allows only it flood So addresses Tech allows and control, but with are the where US, the in that's area around environment. for fisheries that power Tetra And biodiversity world and the making both environmental leaders, of sustainable the

I in constructive yes, we just renewable So e-mails on are offshore the line I here these areas. very but and I positive about wind, the get others would doing that very well. and from a the we're great work five services on minute for do up folks the I we internally, typically other offshore wind say the when mention mentioned, what offer four or And reasons

over the Batrack now I concludes will session. to conclude. turn the Q&A to Dan back conference This

now is this it's and quarter, to like to us very sometimes where true. given performance or places mind in in are being thank questions. Great. easy call But of Thank of would additional have in we sometimes you thank places of remiss like light Thank you all much, on Hilary, very for XX,XXX being including It's the phenomenal the it's with say restrictions today. associates, X LA Sydney. more that this And pandemic, than really Lea performance of is Tech realize with that to County for the for complete days employees not ongoing be and definitely in that for shutdowns the record Hoare us those I had you the Tetra to good us done front all And Tetra we performance. not the at the have been U.K. Tech -- another

you globally, light And we that year forward very you And is Tetra just for the And Goodbye. a the and the when and a the the fiscal importantly, put guidance I you performance with speaking rest safe have year all to you. Tech XXXX. fourth for company really quarter, overall am serve I Thank the with of that, clients look give next thankful hope so phenomenal associates And every our fiscal day of I quarter week. XXXX. performance of the perhaps of specific the you of most impact for what day. our great in results to

now. and our parties disconnect Thank All nice day. and a today. participating, conference have may you Ladies gentlemen, all this for concludes for