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TRC Companies, Inc. (TRR) Announces Fiscal Fourth Quarter 2008 Losses and Outlook for Turnaround Plan

TRC Companies, Inc. (NYSE: TRR), an engineering, consulting, and construction management firm that provides integrated services to the environmental, energy, infrastructure, and real estate markets, recently announced its financial results for the fourth quarter and fiscal year ended June 30, 2008. Fourth quarter gross revenue increased 7 percent to $122.5 million compared with $115.0 million for the corresponding period one year earlier.

Net loss totaled $16.1 million, or a loss of $0.86 per common share, compared with a net loss of $4.3 million, or a loss of $0.23 per common share, during the same time period in 2007. The company’s net loss for the fourth quarter of fiscal 2008 was primarily comprised of a restructuring charge of roughly $3.2 million, legal expenses of $4.4 million, $6.9 million of losses on two large projects, and asset impairment charges of approximately $1.6 million.

The company’s chairman and chief executive officer, Christopher P. Vincze, commented, “Our results were below expectations, but our core businesses and practices continue to improve in all regards. Our turnaround initiatives have resulted in a more rationalized cost structure with ideas for future reductions. We have also further developed management processes and controls.”

The company expects its cost rationalization and project efficiency activity to support an improved fiscal 2009 structure. Additionally, TRC is expected to implement significant price increase initiatives and go-to-market strategies in all three of its core markets, and the company’s backlog continues to hold strong.

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