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TWST: What is Tetra Tech?
Mr. Batrack: Tetra Tech is a consulting and engineering services firm.
We concluded our fiscal year 2005 with revenue of approximately $1.3
billion and currently employ about 7,500 people worldwide. Most of our
work is performed in the United States although we do serve several US-
based customers in international markets. Tetra Tech is focused
primarily on the water market. Some of our high profile projects include
the Los Angeles River Revitalization Master Plan program and watershed
management programs in the Chesapeake Bay, Great Lakes, and
Sacramento/San Joaquin River Delta. We are currently ranked number one
in water by the Engineering News-Record. We were originally founded in
1966 as a coastal engineering and water sciences firm. Tetra Tech's
early growth was driven by our work in deepwater science evaluations of
tsunamis, water hydraulics, and hydrology. Through the 1980s and 1990s,
the company diversified into water quality, environmental, and
infrastructure work. The company delved briefly into wireless
telecommunications in the early 2000s. But now we have redirected our
primary focus back to our core business, which is consulting and
engineering for the water market. Our three major client sectors are the
federal government (46%), state and local governments (19%), and
commercial clients (35%). Some of our biggest clients are the various
branches of the U.S. Department of Defense, the U.S. Environmental
Protection Agency, the Federal Aviation Administration, the U.S.
Department of Energy, and many state and local government agencies
across the United States. Big private clients include Lockheed Martin,
General Motors, and national real estate developers and general
builders. We currently organize the company into two primary segments.
The first segment is our resource management group, which represents
just over 60% of our business. This group provides environmental
engineering and consulting, remediation and remedial construction, and
environmental compliance services to a broad base of public and private
clients. The employees in this segment are consultants, scientists,
geologists, and technical consulting professionals. Market drivers for
this segment include improving national water quality and management and
the military's Base Realignment and Closure activities, among many other
factors. Tetra Tech's infrastructure group represents just under 40% of
our business. This group is comprised of civil engineers, structural
engineers, and technical and design professionals that prepare plans and
specifications primarily associated with projects in the water sector.
Market drivers for this group include the need to improve our nation's
aging water infrastructure, water quality pressures, and population
shifts towards the sunshine states in the West and South. Our
infrastructure clients predominantly include state and local government
agencies and commercial clients. The infrastructure group also includes
our systems support and security business. Tetra Tech is primarily
focused on the forefront of the project cycle, which has a higher
technical barrier to entry and higher margin than the downstream phases
of a project. The project cycle starts with research and development and
continues through science, engineering, and project management, which is
typically where we finish off.
Tickers included in this excerpt: TTEK
For more information call (212) 952 7433. The
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not make stock recommendations.
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